Direct Tax Collection

Question 1

Why is direct tax called progressive tax ?

Answer 1

It increases with the income of individuals/entities

Question 2

Some examples of direct tax ?

Answer 2

Income Tax
Capital Gain Tax
Security Transaction Tax

Question 3

Which board monitors direct tax ?

Answer 3

CBDT

Question 4

Full form of CBDT

Answer 4

Central Board of Direct Tax

Question 5

Which department is CBDT in ?

Answer 5

Department of Revenue

Question 6

Which Ministry is Department of Revenue under ?

Answer 6

Ministry of Finance

Question 7

What has been percentage increase in number of returns of direct tax in 4 years ?

Answer 7

80%

Question 8

What has been the percentage increase in number of persons filing income tax returns ?

Answer 8

65%

Question 9

What is tax buoyancy ?

Answer 9

Ratio of % growth in tax revenues to growth in GDP

Question 10

What is tax buoyancy an indicator of ?

Answer 10

Efficiency of tax revenue mobilisation

Question 11

How has demoneitsation helped in direct tax collection ?

Answer 11

By removing anonymity in cash deposits to banks

Question 12

How has GST made direct tax evasion difficult ?

Answer 12

Businesses have to disclose their annual turnover

Question 13

How has the growing economy helped in greater direct tax ?

Answer 13

Middle class size has grown

Question 14

What are some other ways the system became efficient to encourage direct tax collection ?

Answer 14

1. Online platform

2. Hassle Free Refund

Question 15

How has Aaykur Setu helped ?

Answer 15

It is an app to help people understand direct tax, PAN, etc

Question 16

How has linking Aadhaar to PAN cards helped ?

Answer 16

Increased surveillance

Question 17

How has Arbind Modi panel helped ?

Answer 17

Drafting new direct tax legislation

Question 18

How has income declaration Scheme helped ?

Answer 18

Offered tax evaders an oppurtunity to disclose income

Question 19

How does high tax buoyancy help the economy ?

Answer 19

Government borrows less,

Lower Interest

Question 20

What is crowding effect ?

Answer 20

Large amounts of government borrowing leads to high interest rate, increasing loan rate for individuals

Question 21

How does direct tax collection help the fiscal health of the country ?

Answer 21

Government can spend more on social sectors

Question 22

What are other benefits of Direct Tax collection ?

Answer 22

1. Maintain Inflationary Trends

2. Lower indirect tax

Question 23

How is Inflationary Trends maintained by direct tax collection ?

Answer 23

By maintaining the interest rate