Revenue and Tax Collection Exercise class 10

 

Unit-8 Lesson-9

Revenue and Tax Collection

A.  Very short answer questions

1.  What do you mean by revenue?

Ans:- The income that is gained by government through taxation, donation, fees, fines etc. is called revenue.

2.  What is tax?
Ans:- A tax is a financial charge to the citizens according to the law and levied by government on workers income, goods, profit etc.

3.  What is meant by income tax?

Ans:- The tax which is levied by the government on income of an individual or corporation is called income tax.

 

B.  Short answer questions.

1.  Present the features of income tax.

Ans:- The features of income tax are listed below:

i)  Levied on the income of an individual.

ii)  Levied as per the constitution.

iii)  It is levied by central government.

iv)  It is direct type of tax.

v)  It is annual type of taxation which is charged annually.

 

2.  Mention the features and types of tax revenue.

Ans:- There are two types of tax revenue and they are as follows:-

i)  Tax revenue

ii)  Non tax revenue

The features of tax revenue are listed below:

i)  It is a legal Procedure and one should pay it time to time.

ii)  Tax revenue is spent for public welfare e.g.: construction of hospital, road, etc.

iii)  Tax revenue is the income of government and is collected from people who are liable for it.

iv)  It should be compulsory paid by citizens and refusal to pay tax is punishable.

v)  Tax payer does not get any direct service from the amount which has been paid.

 

3.  Mention the advantage and disadvantages of direct tax.

Ans:- The advantages and disadvantages of direct tax are listed below:

Advantages of Direct tax

i)  It creates a social awareness among the people.

ii)  It creates an equal distribution of wealth.

iii)  It promotes the certainty and equality.

Disadvantages of direct tax

i)  There is chance of tax evasion.

ii)  It creates social conflict in society.

iii)  It is inconvenient because to submit a tax person has to undergo several formalities and procedures.

iv)  It leads to crime, social injustice etc.

 

4.  Mention the advantages and disadvantages of indirect tax.

Ans:- The disadvantages and advantages of indirect tax are listed below:

Advantages of indirect tax

i)  It safe against tax evasion.

ii)  The indirect taxes are more flexible tax system.

iii)  It does not affect the motivation to work and save.

iv)  Indirect tax promotes social welfare including education, health and family welfare.

Disadvantages of indirect tax

i) It affects the consumption of products.

ii)  It further creates gap between rich and poor.

iii)  The indirect taxes are regressive in nature.

iv)  It does not create social awareness and consciousness among people.

 

5.  Differentiate between the tax income and non-tax income.

Ans:- The differentiate between tax income and non-tax income are listed below:

S.n	Tax income	Non tax income
1.	It is the income of the government from taxes.	It is the income of the government from fines, donation, gift etc.
2.	It is the major part of government income.	Its share in government income is very small.
3.	The income from tax income is more than non-tax income.	Income from non-tax income is less.
4.	It is obligation to individual or corporate body.	It is not a obligation to anyone.
5.	Example: income tax, excise duty, sales tax, vat etc.	E.g.: Fees, Fines, dividend, gifts, grants etc.