In the context of public finance, 'Tax Incidence' refers to: MCQ with Answer and Explanation

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In the context of public finance, 'Tax Incidence' refers to:

A. The final burden of the tax after shifting

B. The total tax revenue collected

C. The legal liability to pay the tax

D. The administrative cost of tax collection

Answer: Option A

Solution (By JKSSB Mock Tests)

Tax incidence refers to the final resting place of the tax burden — who ultimately bears the economic burden of the tax after possible shifting.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Goods and Services Tax' input tax credit is claimed by:

A. the government

B. unregistered dealers

C. the final consumer

D. registered businesses on their purchases

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Correct Answer: Option D

Explanation:
Registered businesses can claim input tax credit on their purchases.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'reflation' refers to:

A. increase in unemployment

B. a fall in prices

C. policy measures to stimulate the economy after a period of deflation or recession

D. reduction in money supply

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Correct Answer: Option C

Explanation:
Reflation refers to policies to revive the economy after deflation or recession.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'e-filing' of income tax returns in India is done through:

A. SEBI portal

B. GST portal

C. RBI portal

D. Income Tax e-Filing portal

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Correct Answer: Option D

Explanation:
Income tax returns are e-filed on the Income Tax e-Filing portal.

This question belongs to: Economy GK Economy Set 1

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