Topics:
CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL, Indian Economic Development, NCERT Books
Income Tax Rate Reduction Reason
Since 1991, income tax rates have been continuously reduced because:
- Government did not need tax revenue
- High rates were an important reason for tax evasion — Correct Answer
- People refused to pay taxes
- India abolished income tax
Explanation:
Correct Answer Explanation
High rates of income tax were an important reason for tax evasion. Moderate rates encourage savings and voluntary disclosure of income.
Key Points:
- Part of tax reforms under liberalisation.
- Corporation tax has also been gradually reduced.
📚 About this Topic — CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL
This multiple choice question is from CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL to strengthen your preparation.
