Consider the following statements- In India taxes on transactions in Stock-Exchanges and Futures Markets are –
Levied by Union.
Collected by the State Government.
Code :
Correct Answer:
(A)
Only 1
Seventh Schedule of the Constitution is for distribution of powers between the Union and the States. There are 3 lists under this- Union List, State List and Concurrent List. According to the question, the tax imposed on the stock market and futures market belong to the Union List. However, under Article 270 of the Constitution, such taxes are Levied and collected by the union but assigned to the states.
Ques:
22
Consider the following statements:
The function (s) of the Finance Commission is/are –
To allow the withdrawal of the money out of the Consolidated Fund of India.
To allocate among the States the shares of proceeds of taxes.
To consider applications for grants-in-aid from States.
To supervise and report on whether the Union and State Governments are levying taxes in accordance with the budgetary provisions.
Which of these statements is/are correct?
Correct Answer:
(B)
2 and 3
According to Article 280(3) of the Constitution, the main functions of the Finance Commission is –
(1) To recommend the distribution of the net proceeds of taxes between the Union and the States.
(2) To determine the principles which should govern the grants in aid of the revenues to the States out of the Consolidated Fund of India.
(3) To suggest the necessary measures to increase the Consolidated Fund of the State for the development of Local bodies in the state on the basis of recommendation made by finance commission.
(4) Any other matter referred to the Commission by the President in the interest of the sound financial administration.
It is the function of the Parliament to allow to withdraw from the Consolidated Fund of India. It is the task of the Finance Ministry to oversee whether the Union Government and the State Governments are collecting taxes according to the provisions of the budget or not. Thus, only statement 2 and 3 are correct.
Ques:
23
With reference to the Finance Commission of India, which of the following statements is correct?
It encourages the inflow of foreign capital for infrastructure development.
It facilitates the proper distribution of finances among the Public Sector Undertakings.
Correct Answer:
(D)
given above is correct in this context.
Under Article 280(3) of the Constitution, the Finance Commission of India gives its suggestion in following cases:
Distribution of receipts of federal taxes between the Union and the States;
Under Article 275 aid in the revenue of the States; and
Any further topic about which the President will recommend to the Commission in the interest of economy.
The measures needed to augment the consolidated fund of a state to supplement the resources of the Panchayats and the municipalities in the state on the basis of the recommendations made by the state Finance Commission.
Ques:
24
Which one of the following is not a function of Finance Commission in India?
Correct Answer:
(D)
Devolution of Trade Tax
Income Tax and Excise Tax (now included in GST) are part of Federal taxes and the finance commission recommends the federal tax in terms of distribution between the Union and the states. The Finance Commission also determines the grants-in-aids to the States under Article 275, but the Trade Tax (now part of GST) is imposed and collected by the States whose distribution is not the subject of the Finance Commission’s functions.
Ques:
25
Main agency to resolve the fiscal disputes between the Centre and States is –
Correct Answer:
(A)
Supreme Court
Supreme Court is the main agency to resolve the fiscal disputes between the centre and the states. Supreme court deals the above matter under Article 131 of the constitution of India. Finance commission core responsibility is to recommend the sharing of taxes between centre and states.
Ques:
26
Consider the following statements and select the correct answer from the code given below:
Assertion (A): State Finance Commission is a Constitutional body.
Reason (R) : Union Finance Commission cannot recommend financial assistance to Panchayats.
Code :
(A) and (R) are true and (R) is the correct explanation of
(A)
Correct Answer:
(C)
is true, but (R) is false.
According to Article 243(I) of the Constitution, the Governor of a State shall, as soon as may, be within one year from the commencement of the Constitution (Seventy-Third Amendment) Act, 1992 and thereafter at the expiration of every fifth year, constitute a Finance Commission to review the financial position of the Panchayats and to make recommendations to the Governor. Thus, the State Finance Commission is a Constitutional body. Article 280(3) (bb) of the Constitution lays down the Finance Commission to make its recommendations with respect to the Panchayats and Municipalities “on the basis of the recommendations made by the Finance Commission of the State.”
Ques:
27
Who recommends to the Governor the principles which should govern the distribution between the state and the panchayats of the net proceeds of the taxes and Fees leviable by the State, which may be divided between them?
Correct Answer:
(C)
State Finance Commission
According to Article 243Y of the Indian Constitution, the State Finance Commission is established to review the financial position of Panchayats and recommend to the Governor the principles governing the distribution of taxes and fees between the State and the Panchayats.
Ques:
28
The question considered by Swarn Singh Committee was related to -
Correct Answer:
(C)
Priority to Directive Principles of State Policy in comparison to fundamental rights.
In 1976, the Congress Government constituted a Committee under the Chairmanship of Sardar Swarn Singh. It was known as ‘Constitutional Amendment Committee.’ 42nd Constitutional Amendment is the result of the recommendation of this Committee. It pointed out the Presidential system, inappropriate for India. However, Commission had considered mainly the question of priority to Directive Principles of State Policy over Fundamental Rights.
Ques:
29
Mandal Commission, whose proposals created massive dispute, was set up by-
Correct Answer:
(B)
Morarji Desai
The Mandal Commission was constituted in India in 1979 by the Janata Party Government under former Prime Minister Morarji Desai with a mandate to “identify the socially and educationally backward persons.” It was headed by an Indian Parliamentarian Bindheshwari Prasad Mandal.
Ques:
30
Who is the first Chairman of the Backward Classes Commission?
Correct Answer:
(B)
Kaka Saheb Kalelkar
The first All India Backward Classes Commission was appointed by the President of India on 29th January 1953, which was formally inaugurated on the 18th of March 1953 The first chairman of the commission was Kaka Saheb Kalelkar. Dattatreya Balkrushna Kalekar (1 Dec 1885-21 Aug 1981) Popularly known as Kaka Kalekar, was an Indian independence activist, social reformer and journalist. He was a major follower of the philosophy and methods of Mahatma Gandhi. Kalekar was born in Satna (M.P.). He was appointed as a member of Rajya Sabha from 1952 to 1964. He presided Gujarati Sahitya Parishad in 1959. He established Gandhi Vidyapith, Vedchhi in 1967 and served as its vice chancellor. Mahatma Gandhi called him Savai Gujarati (a quarter more than a Gujarati).