UPSC Prelims Marathon 11 October - Tax Structure in India-II

ForumIAS LATEST

08 July | Success Favours the Composed: UPSC Lessons by Ayush Sinha | Click Here to Watch →
09 July | Make Your UPSC Answers More Impactful with Adjectives by Ayush Sinha | Click Here to Watch →

Dear Friends,

We are posting prelims marathon MCQs for today. In this initiative, you can attempt 10 subjectwise MCQs daily. Daily Quiz UPSC Prelims Marathon 11 October Tax Structure in India-II

For schedule, refer to the archive link given below. Best UPSC institute In Delhi,

For the Prelims Marathon archive – click here,

Start Quiz

Marking Pattern

Correct Answer : 2

Wrong Answer : -0.66

Answered

Not Answered

Marked For Review

Not Visited

CHOOSE A QUESTION

Time Left :5

Question No. 1

With reference to the Commodities Transaction Tax (CTT) in India, consider the following statements:
1.CTT is levied on the sale of commodity derivatives such as futures and options traded on recognized exchanges.
2.It applies uniformly at 0.01% on all agricultural and non-agricultural commodities without any exemptions.
Which of the statements given above is/are correct?

A1 only

B2 only

CBoth 1 and 2

DNeither 1 nor 2

Question No. 2

Securities Transaction Tax in India is a direct tax levied on:

AAll over-the-counter trades in unlisted securities

BPurchase and sale of equity shares, derivatives, and units of equity-oriented mutual funds on recognized stock exchanges

CTransactions in government bonds and treasury bills

DCurrency derivatives traded on commodity exchanges

Question No. 3

With reference to Capital Gains Tax in India, consider the following statements:
1.‘Capital gains’ arise from the transfer of a capital asset, which includes both movable and immovable property.
2.‘Short-term capital assets’ are those held for more than 24 months in the case of immovable property.
3.‘Long-term capital gains’ on listed equity shares exceeding Rs. 1.25 lakh are taxed at 12.5% without indexation benefit.
4.Indexation adjustment is available for computing long-term capital gains on all types of assets, including shares.
Which of the statements given above is/are correct?

A1 and 2 only

B3 only

C1 and 3 only

D2, 3 and 4 only

Question No. 4

Consider the following pairs:
Tax TypeApplicability
IMinimum Alternate TaxCompanies, based on book profits
IIAlternate Minimum TaxNon-corporate assessees claiming certain deductions
IIIBoth MAT and AMTLevied at 15% plus surcharge and cess
In how many of the above rows is the given information correctly matched?

AOnly one

BOnly two

CAll the three

DNone

Question No. 5

With reference to Investment Allowance under the Income Tax Act in India, consider the following statements:
1.It allows a deduction of 15% on the actual cost of new plant and machinery acquired by manufacturing undertakings.
2.The allowance is available to service sector enterprises as well, provided the investment exceeds Rs. 100 crore.
3.If the asset is sold within 8 years, the allowance claimed earlier may be withdrawn as deemed income.
Which of the statements given above is/are correct?

A1 and 2 only

B3 only

C1 and 3 only

D1, 2 and 3

Question No. 6

Consider the following taxes in India:
1.Corporation Tax
2.Personal Income Tax
3.Goods and Services Tax
How many of the above have recorded an annualized growth rate of 15% or more in collections between 2000-01 and 2023-24?

AOnly one

BOnly two

COnly three

DAll four

Question No. 7

In the context of Tax Expenditure in India, which of the following are considered as revenue foregone due to tax concessions?
1.Deduction under Section 80C for investments in specified instruments
2.Exemption of income from agricultural activities
3.Direct cash subsidies provided by the government for food security
Select the correct answer using the code given below:

A1 and 2 only

B2 and 3 only

C1 and 3 only

D1, 2 and 3

Question No. 8

The Fifteenth Finance Commission of India recommended the vertical devolution of central taxes to states at:

A40% of the divisible tax pool

B41% of the divisible tax pool

C42% of the divisible tax pool

D15% of the divisible tax pool

Question No. 9

With reference to the Finance Commission of India, consider the following statements:
1.It is a quasi-judicial body constituted every five years under Article 280 of the Constitution to recommend the distribution of tax revenues between the Union and states.
2.Its recommendations on tax devolution are binding on the executive but can be altered by Parliament through legislation.
Which of the statements given above is/are correct?

A1 only

B2 only

CBoth 1 and 2

DNeither 1 nor 2

Question No. 10

Consider the following statements with regard to the Direct Tax Code (DTC) 2025 in India:
1.It replaces the Income Tax Act, 1961, and aims to simplify tax administration by consolidating over 70 sections into fewer provisions.
2.The DTC expands the scope of Tax Deducted at Source (TDS) to cover virtual digital assets and expands Tax Collected at Source (TCS) for high-value remittances.
3.It introduces a uniform flat tax rate of 15% for all resident individuals, abolishing the slab system entirely.
Which of the statements given above is/are correct?

A1 and 2 only

B3 only

C1 and 3 only

D1, 2 and 3

Total Number of Questions :

Total Not Attempted Questions :

Total Correct :

Total Wrong :

For schedule, refer to the archive link given below. Best UPSC institute In Delhi,

For the Prelims Marathon archive – click here,

Marking Pattern

CHOOSE A QUESTION

Question No. 1

Question No. 2

Question No. 3

Question No. 4

Question No. 5

Question No. 6

Question No. 7

Question No. 8

Question No. 9

Question No. 10

Share this:

Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS