The Direct Tax Code (DTC) was a proposed comprehensive legislation in India aimed at simplifying and rationalizing the laws governing direct taxes. The primary direct tax covered and significantly affected by the proposed DTC was Income Tax (both individual and corporate).
Direct Tax Code in India is related to which of the following?
Asked in UPPCS Prelims 2018 · Topic: Fiscal Policy & Revenue (Taxation System in India: Direct, Indirect taxes, and Tax Reforms (including GST))
More Economic Development questions
- The Central Board of Direct Taxes (CBDT) in June 2013 has specified a value for the cost inflation index of 2013-14. In this regard, which of the statements given below is/are correct? 1. There has been a rise in the cost inflation index over the year 2012-13. 2. The cost inflation index helps in reducing the inflationary gains, thereby reducing the long-term capital gains tax payout for a taxpayer. Select the correct answer using the code given below.
- It is used to adjust the purchase price of an asset for inflation when calculating long-term capital gains. - The CII for a financial year is typically higher than that of the previous financial year, reflecting the general trend of inflation. Given the inflationary environment in India around 2013, it is highly likely that the CII for 2013-14 was higher than that for 2012-13. - The purpose of indexation using CII is to account for the decrease in the purchasing power of money due to inflation. By indexing the cost of acquisition and improvement, the taxable capital gain is reduced, as it accounts for only the real gain over and above inflation. This directly reduces the long-term capital gains tax liability for the taxpayer. 384. Which of the statements given below is/are correct ? 1. In India, the provisions of General Anti-Avoidance Rule (GAAR) will be implemented with effect from 1 April 2015 2. The provisions of GAAR were aimed at checking tax avoidance by overseas investors Select the correct answer using the code given below :
- Under Section 10(26) of the Income Tax Act, which of the following category of people are exempted from income tax ?
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- Consider the following statements : 1. Burden of a tax on a commodity is independent of who (buyer or seller) it is explicitly imposed upon 2. Burden of a tax on a commodity depends on the slope of the demand and supply curves
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- What is/are the most likely advantages of implementing 'Goods and Services Tax (GST)'? 1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India. 2. It will drastically reduce the 'Current Account Deficit' of India and will enable it to increase its foreign exchange reserves. 3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future. Select the correct answer using the code given below: