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Read the following news report and answer the question that follow:
MUMBAI: Investors were relieved as the finance minister Nirmala Sitharaman avoided an increase in the long-term capital gains tax on equity investments and securities transaction tax in the Union Budget for 2021-22 announced today.
Heading into the Budget, most investors were concerned that the government may look at increasing the long-term capital gains tax or the securities transaction tax in order to boost its revenues, especially as the stock market has witnessed a breakneck rally since the beginning of April.
In her Budget speech in July 2019, the finance minister had reintroduced the long-term capital gains tax after 15 years. Currently, individuals who make capital gains of more than `1 lakh on their equity investment after a holding period of more than one year have to pay a tax of 10 per cent on the capital gains. However, the capital gains tax for individuals in the highest bracket of earnings comes around 15 per cent inclusive of a cess.
Money managers had said that the government needed to bring out an equity friendly budget, implying no changes in taxations related to the stock market, in order to ensure that its divestment plans went smoothly in the next fiscal year.
Q. What is the reason for the government to increase taxes?
- a)To extract money from the people
- b)To use the money for themselves
- c)To achieve the objective of equality in income distribution
- d)To get their salary.
Correct answer is option 'C'. Can you explain this answer?
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Read the following news report and answer the question that follow:MU...
Government can collect tax from the rich and exempt the poor from income tax. Money so collected can be spent on providing free services to the poor. It will reduce disposable income of the rich and increase that of the poor.
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Read the following news report and answer the question that follow:MU...
Reasons for the government to increase taxes:
- Objective of equality in income distribution: One of the primary reasons for the government to increase taxes is to achieve a more equitable distribution of income among its citizens. By levying taxes on individuals based on their income levels, the government aims to reduce income inequality and ensure that the burden of taxation is shared fairly across the population.
- Revenue generation: Another important reason for the government to increase taxes is to generate revenue that can be used to fund various public services and projects. Taxes are a major source of income for the government, and by increasing taxes, it can raise additional funds to finance social welfare programs, infrastructure development, and other public initiatives.
- Dealing with budget deficits: Increasing taxes can also help the government deal with budget deficits by bridging the gap between its spending and revenue. When the government is facing a shortfall in its finances, it may resort to raising taxes to ensure that it can meet its financial obligations and maintain economic stability.
- Control inflation: In some cases, the government may increase taxes as a way to control inflation by reducing the amount of disposable income in the economy. By taxing individuals and businesses more, the government can curb excessive spending and demand, which can help stabilize prices and prevent runaway inflation.
- Encouraging certain behaviors: The government may also increase taxes on certain goods or activities to discourage their consumption or use. For example, higher taxes on tobacco products are meant to deter smoking and improve public health, while taxes on luxury items may be increased to promote more responsible spending habits.
- Objective of equality in income distribution: One of the primary reasons for the government to increase taxes is to achieve a more equitable distribution of income among its citizens. By levying taxes on individuals based on their income levels, the government aims to reduce income inequality and ensure that the burden of taxation is shared fairly across the population.
- Revenue generation: Another important reason for the government to increase taxes is to generate revenue that can be used to fund various public services and projects. Taxes are a major source of income for the government, and by increasing taxes, it can raise additional funds to finance social welfare programs, infrastructure development, and other public initiatives.
- Dealing with budget deficits: Increasing taxes can also help the government deal with budget deficits by bridging the gap between its spending and revenue. When the government is facing a shortfall in its finances, it may resort to raising taxes to ensure that it can meet its financial obligations and maintain economic stability.
- Control inflation: In some cases, the government may increase taxes as a way to control inflation by reducing the amount of disposable income in the economy. By taxing individuals and businesses more, the government can curb excessive spending and demand, which can help stabilize prices and prevent runaway inflation.
- Encouraging certain behaviors: The government may also increase taxes on certain goods or activities to discourage their consumption or use. For example, higher taxes on tobacco products are meant to deter smoking and improve public health, while taxes on luxury items may be increased to promote more responsible spending habits.
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Read the following news report and answer the question that follow:MUMBAI: Investors were relieved as the finance minister Nirmala Sitharaman avoided an increase in the long-term capital gains tax on equity investments and securities transaction tax in the Union Budget for 2021-22 announced today.Heading into the Budget, most investors were concerned that the government may look at increasing the long-term capital gains tax or the securities transaction tax in order to boost its revenues, especially as the stock market has witnessed a breakneck rally since the beginning of April.In her Budget speech in July 2019, the finance minister had reintroduced the long-term capital gains tax after 15 years. Currently, individuals who make capital gains of more than `1 lakh on their equity investment after a holding period of more than one year have to pay a tax of 10 per cent on the capital gains. However, the capital gains tax for individuals in the highest bracket of earnings comes around 15 per cent inclusive of a cess.Money managers had said that the government needed to bring out an equity friendly budget, implying no changes in taxations related to the stock market, in order to ensure that its divestment plans went smoothly in the next fiscal year.Q. What is the reason for the government to increase taxes?a)To extract money from the peopleb)To use the money for themselvesc)To achieve the objective of equality in income distributiond)To get their salary.Correct answer is option 'C'. Can you explain this answer?
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Read the following news report and answer the question that follow:MUMBAI: Investors were relieved as the finance minister Nirmala Sitharaman avoided an increase in the long-term capital gains tax on equity investments and securities transaction tax in the Union Budget for 2021-22 announced today.Heading into the Budget, most investors were concerned that the government may look at increasing the long-term capital gains tax or the securities transaction tax in order to boost its revenues, especially as the stock market has witnessed a breakneck rally since the beginning of April.In her Budget speech in July 2019, the finance minister had reintroduced the long-term capital gains tax after 15 years. Currently, individuals who make capital gains of more than `1 lakh on their equity investment after a holding period of more than one year have to pay a tax of 10 per cent on the capital gains. However, the capital gains tax for individuals in the highest bracket of earnings comes around 15 per cent inclusive of a cess.Money managers had said that the government needed to bring out an equity friendly budget, implying no changes in taxations related to the stock market, in order to ensure that its divestment plans went smoothly in the next fiscal year.Q. What is the reason for the government to increase taxes?a)To extract money from the peopleb)To use the money for themselvesc)To achieve the objective of equality in income distributiond)To get their salary.Correct answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following news report and answer the question that follow:MUMBAI: Investors were relieved as the finance minister Nirmala Sitharaman avoided an increase in the long-term capital gains tax on equity investments and securities transaction tax in the Union Budget for 2021-22 announced today.Heading into the Budget, most investors were concerned that the government may look at increasing the long-term capital gains tax or the securities transaction tax in order to boost its revenues, especially as the stock market has witnessed a breakneck rally since the beginning of April.In her Budget speech in July 2019, the finance minister had reintroduced the long-term capital gains tax after 15 years. Currently, individuals who make capital gains of more than `1 lakh on their equity investment after a holding period of more than one year have to pay a tax of 10 per cent on the capital gains. However, the capital gains tax for individuals in the highest bracket of earnings comes around 15 per cent inclusive of a cess.Money managers had said that the government needed to bring out an equity friendly budget, implying no changes in taxations related to the stock market, in order to ensure that its divestment plans went smoothly in the next fiscal year.Q. What is the reason for the government to increase taxes?a)To extract money from the peopleb)To use the money for themselvesc)To achieve the objective of equality in income distributiond)To get their salary.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following news report and answer the question that follow:MUMBAI: Investors were relieved as the finance minister Nirmala Sitharaman avoided an increase in the long-term capital gains tax on equity investments and securities transaction tax in the Union Budget for 2021-22 announced today.Heading into the Budget, most investors were concerned that the government may look at increasing the long-term capital gains tax or the securities transaction tax in order to boost its revenues, especially as the stock market has witnessed a breakneck rally since the beginning of April.In her Budget speech in July 2019, the finance minister had reintroduced the long-term capital gains tax after 15 years. Currently, individuals who make capital gains of more than `1 lakh on their equity investment after a holding period of more than one year have to pay a tax of 10 per cent on the capital gains. However, the capital gains tax for individuals in the highest bracket of earnings comes around 15 per cent inclusive of a cess.Money managers had said that the government needed to bring out an equity friendly budget, implying no changes in taxations related to the stock market, in order to ensure that its divestment plans went smoothly in the next fiscal year.Q. What is the reason for the government to increase taxes?a)To extract money from the peopleb)To use the money for themselvesc)To achieve the objective of equality in income distributiond)To get their salary.Correct answer is option 'C'. Can you explain this answer?.
Read the following news report and answer the question that follow:MUMBAI: Investors were relieved as the finance minister Nirmala Sitharaman avoided an increase in the long-term capital gains tax on equity investments and securities transaction tax in the Union Budget for 2021-22 announced today.Heading into the Budget, most investors were concerned that the government may look at increasing the long-term capital gains tax or the securities transaction tax in order to boost its revenues, especially as the stock market has witnessed a breakneck rally since the beginning of April.In her Budget speech in July 2019, the finance minister had reintroduced the long-term capital gains tax after 15 years. Currently, individuals who make capital gains of more than `1 lakh on their equity investment after a holding period of more than one year have to pay a tax of 10 per cent on the capital gains. However, the capital gains tax for individuals in the highest bracket of earnings comes around 15 per cent inclusive of a cess.Money managers had said that the government needed to bring out an equity friendly budget, implying no changes in taxations related to the stock market, in order to ensure that its divestment plans went smoothly in the next fiscal year.Q. What is the reason for the government to increase taxes?a)To extract money from the peopleb)To use the money for themselvesc)To achieve the objective of equality in income distributiond)To get their salary.Correct answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following news report and answer the question that follow:MUMBAI: Investors were relieved as the finance minister Nirmala Sitharaman avoided an increase in the long-term capital gains tax on equity investments and securities transaction tax in the Union Budget for 2021-22 announced today.Heading into the Budget, most investors were concerned that the government may look at increasing the long-term capital gains tax or the securities transaction tax in order to boost its revenues, especially as the stock market has witnessed a breakneck rally since the beginning of April.In her Budget speech in July 2019, the finance minister had reintroduced the long-term capital gains tax after 15 years. Currently, individuals who make capital gains of more than `1 lakh on their equity investment after a holding period of more than one year have to pay a tax of 10 per cent on the capital gains. However, the capital gains tax for individuals in the highest bracket of earnings comes around 15 per cent inclusive of a cess.Money managers had said that the government needed to bring out an equity friendly budget, implying no changes in taxations related to the stock market, in order to ensure that its divestment plans went smoothly in the next fiscal year.Q. What is the reason for the government to increase taxes?a)To extract money from the peopleb)To use the money for themselvesc)To achieve the objective of equality in income distributiond)To get their salary.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following news report and answer the question that follow:MUMBAI: Investors were relieved as the finance minister Nirmala Sitharaman avoided an increase in the long-term capital gains tax on equity investments and securities transaction tax in the Union Budget for 2021-22 announced today.Heading into the Budget, most investors were concerned that the government may look at increasing the long-term capital gains tax or the securities transaction tax in order to boost its revenues, especially as the stock market has witnessed a breakneck rally since the beginning of April.In her Budget speech in July 2019, the finance minister had reintroduced the long-term capital gains tax after 15 years. Currently, individuals who make capital gains of more than `1 lakh on their equity investment after a holding period of more than one year have to pay a tax of 10 per cent on the capital gains. However, the capital gains tax for individuals in the highest bracket of earnings comes around 15 per cent inclusive of a cess.Money managers had said that the government needed to bring out an equity friendly budget, implying no changes in taxations related to the stock market, in order to ensure that its divestment plans went smoothly in the next fiscal year.Q. What is the reason for the government to increase taxes?a)To extract money from the peopleb)To use the money for themselvesc)To achieve the objective of equality in income distributiond)To get their salary.Correct answer is option 'C'. Can you explain this answer?.
Solutions for Read the following news report and answer the question that follow:MUMBAI: Investors were relieved as the finance minister Nirmala Sitharaman avoided an increase in the long-term capital gains tax on equity investments and securities transaction tax in the Union Budget for 2021-22 announced today.Heading into the Budget, most investors were concerned that the government may look at increasing the long-term capital gains tax or the securities transaction tax in order to boost its revenues, especially as the stock market has witnessed a breakneck rally since the beginning of April.In her Budget speech in July 2019, the finance minister had reintroduced the long-term capital gains tax after 15 years. Currently, individuals who make capital gains of more than `1 lakh on their equity investment after a holding period of more than one year have to pay a tax of 10 per cent on the capital gains. However, the capital gains tax for individuals in the highest bracket of earnings comes around 15 per cent inclusive of a cess.Money managers had said that the government needed to bring out an equity friendly budget, implying no changes in taxations related to the stock market, in order to ensure that its divestment plans went smoothly in the next fiscal year.Q. What is the reason for the government to increase taxes?a)To extract money from the peopleb)To use the money for themselvesc)To achieve the objective of equality in income distributiond)To get their salary.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Read the following news report and answer the question that follow:MUMBAI: Investors were relieved as the finance minister Nirmala Sitharaman avoided an increase in the long-term capital gains tax on equity investments and securities transaction tax in the Union Budget for 2021-22 announced today.Heading into the Budget, most investors were concerned that the government may look at increasing the long-term capital gains tax or the securities transaction tax in order to boost its revenues, especially as the stock market has witnessed a breakneck rally since the beginning of April.In her Budget speech in July 2019, the finance minister had reintroduced the long-term capital gains tax after 15 years. Currently, individuals who make capital gains of more than `1 lakh on their equity investment after a holding period of more than one year have to pay a tax of 10 per cent on the capital gains. However, the capital gains tax for individuals in the highest bracket of earnings comes around 15 per cent inclusive of a cess.Money managers had said that the government needed to bring out an equity friendly budget, implying no changes in taxations related to the stock market, in order to ensure that its divestment plans went smoothly in the next fiscal year.Q. What is the reason for the government to increase taxes?a)To extract money from the peopleb)To use the money for themselvesc)To achieve the objective of equality in income distributiond)To get their salary.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Read the following news report and answer the question that follow:MUMBAI: Investors were relieved as the finance minister Nirmala Sitharaman avoided an increase in the long-term capital gains tax on equity investments and securities transaction tax in the Union Budget for 2021-22 announced today.Heading into the Budget, most investors were concerned that the government may look at increasing the long-term capital gains tax or the securities transaction tax in order to boost its revenues, especially as the stock market has witnessed a breakneck rally since the beginning of April.In her Budget speech in July 2019, the finance minister had reintroduced the long-term capital gains tax after 15 years. Currently, individuals who make capital gains of more than `1 lakh on their equity investment after a holding period of more than one year have to pay a tax of 10 per cent on the capital gains. However, the capital gains tax for individuals in the highest bracket of earnings comes around 15 per cent inclusive of a cess.Money managers had said that the government needed to bring out an equity friendly budget, implying no changes in taxations related to the stock market, in order to ensure that its divestment plans went smoothly in the next fiscal year.Q. What is the reason for the government to increase taxes?a)To extract money from the peopleb)To use the money for themselvesc)To achieve the objective of equality in income distributiond)To get their salary.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Read the following news report and answer the question that follow:MUMBAI: Investors were relieved as the finance minister Nirmala Sitharaman avoided an increase in the long-term capital gains tax on equity investments and securities transaction tax in the Union Budget for 2021-22 announced today.Heading into the Budget, most investors were concerned that the government may look at increasing the long-term capital gains tax or the securities transaction tax in order to boost its revenues, especially as the stock market has witnessed a breakneck rally since the beginning of April.In her Budget speech in July 2019, the finance minister had reintroduced the long-term capital gains tax after 15 years. Currently, individuals who make capital gains of more than `1 lakh on their equity investment after a holding period of more than one year have to pay a tax of 10 per cent on the capital gains. However, the capital gains tax for individuals in the highest bracket of earnings comes around 15 per cent inclusive of a cess.Money managers had said that the government needed to bring out an equity friendly budget, implying no changes in taxations related to the stock market, in order to ensure that its divestment plans went smoothly in the next fiscal year.Q. What is the reason for the government to increase taxes?a)To extract money from the peopleb)To use the money for themselvesc)To achieve the objective of equality in income distributiond)To get their salary.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Read the following news report and answer the question that follow:MUMBAI: Investors were relieved as the finance minister Nirmala Sitharaman avoided an increase in the long-term capital gains tax on equity investments and securities transaction tax in the Union Budget for 2021-22 announced today.Heading into the Budget, most investors were concerned that the government may look at increasing the long-term capital gains tax or the securities transaction tax in order to boost its revenues, especially as the stock market has witnessed a breakneck rally since the beginning of April.In her Budget speech in July 2019, the finance minister had reintroduced the long-term capital gains tax after 15 years. Currently, individuals who make capital gains of more than `1 lakh on their equity investment after a holding period of more than one year have to pay a tax of 10 per cent on the capital gains. However, the capital gains tax for individuals in the highest bracket of earnings comes around 15 per cent inclusive of a cess.Money managers had said that the government needed to bring out an equity friendly budget, implying no changes in taxations related to the stock market, in order to ensure that its divestment plans went smoothly in the next fiscal year.Q. What is the reason for the government to increase taxes?a)To extract money from the peopleb)To use the money for themselvesc)To achieve the objective of equality in income distributiond)To get their salary.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice Commerce tests.
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