10th Social Science - Book Back Answers - Economics Unit 4

SSLC / 10th Social Science - Book Back Answers - Economics Unit 4 - English Medium

Tamil Nadu Board 10th Standard Social Science - Economics Unit 4: Book Back Answers and Solutions

This post covers the book back answers and solutions for Unit 4 – Economics from the Tamil Nadu State Board 10th Standard Social Science textbook. These detailed answers have been carefully prepared by our expert teachers at KalviTips.com.

We have explained each answer in a simple, easy-to-understand format, highlighting important points step by step under the relevant subtopics. Students are advised to read and memorize these subtopics thoroughly. Once you understand the main concepts, you’ll be able to connect other related points with real-life examples and confidently present them in your tests and exams.

By going through this material, you’ll gain a strong understanding of Economics Unit 4 along with the corresponding book back questions and answers (PDF format).

Question Types Covered:

1 Mark Questions: Choose the correct answer, Fill in the blanks, Identify the correct statement, Match the following
2 Mark Questions: Answer briefly
3, 4, and 5 Mark Questions: Answer in detail

All answers are presented in a clear and student-friendly manner, focusing on key points to help you score full marks.

All the best, Class 10 students! Prepare well and aim for top scores. Thank you!

Unit 4: Government and Taxes

I. Choose the correct answer.

1. The three levels of governments in India are _____.
a) Union, state and local
b) Central, state and village
c) Union, municipality and panchayat
d) None of the above
Answer Key:
a) Union, state and local

2. In India, taxes include _____.
a) Direct taxes
b) Indirect taxes.
c) Both (a) and (b) d) None of these
Answer Key:
c) Both (a) and (b)

3. Which is the role of government and development policies?
a) Defence
b) Foreign policy
c) Regulate the economy
d) all of above
Answer Key:
d) all of above

4. The most common and important tax levied on an individual in India is _____.
a) Service tax
b) Excise duty
c) Income tax
d) Central sales tax
Answer Key:
c) Income tax

5. Under which tax one nation, one uniform tax is ensured _____.
a) Value added tax (VAT)
b) Income tax
c) Goods and service tax
d) Sales tax
Answer Key:
c) Goods and service tax

6. Income tax was introduced in India for the first time in the year _____.
a) 1860
b) 1870
c) 1880
d) 1850
Answer Key:
a) 1860

7. _____ tax is charged on the benefits derived from property ownership.
a) Income tax
b) Wealth tax
c) Corporate tax
d) Excise duty
Answer Key:
b) Wealth tax

8. What are identified as causes of black money?
a) Shortage of goods
b) High tax rate
c) Smuggling
d) All of above
Answer Key:
d) All of above

II. Fill in the blanks.

1. _____ is levied by the government for the development of the state’s economy.
2. The origin of the word ‘tax’ is from the word _____.
3. The burden of the _____ tax cannot be shifted to others.
4. The Goods and Service Tax Act came into effect on _____.
5. The unaccounted money that is concealed from the tax administrator is called _____.
Answer Key:
1. Tax
2. taxation
3. direct
4. 1st July 2017
5. Black money

III. Choose the correct statement.

1. Which of the following statements is correct about GST?
i) GST is the ‘one point tax’.
ii) This aims to replace all direct taxes levied on goods and services by the Central and State governments.
iii) It will be implemented from 1 July 2017 throughout the country.
iv) It will unify the tax structure in India.
a) (i) and (ii) are correct
b) (ii), (iii) and (iv) are correct
c) (i), (iii) and (iv) are correct
d) All are correct
Answer Key:
c) (i), (iii) and (iv) are correct

IV. Match the following.

1	Income Tax	Value added tax
2	Excise duty	1 July 2017
3	VAT	Smuggling
4	GST	Direct tax
5	Black money	Indirect tax

Answer Key:

1	Income Tax	Direct tax
2	Excise duty	Indirect tax
3	VAT	Value added tax
4	GST	1 July 2017
5	Black money	Smuggling

V. Give Short answers.

1. Define tax.
Answer Key:
1. Taxes are defined as compulsory payments to government without expectation of direct return or benefit to the tax payers.
2. Prof. Seligman also defined a tax as “a compulsory contribution from a person to the government to defray the expenses incurred in the common interest of all, without reference to special benefits conferred.”

2. Why do we pay tax to the government?
Answer Key:
1. States use money provided by taxation to carry out many functions.
2. They spend it on infrastructure, transportation, sanitation, health care, military,
scientific research, Public works, Public Insurance and public safety, Culture
and the arts.

3. What are the types of taxes ? Give examples.
Answer Key:
There are two types of taxes.
Direct taxes: Income tax, Corporate tax, Wealth tax.
Indirect taxes: Stamp tax, Entertainment tax, Excise duty and GST.

4. Write short notes on Goods and Service Tax.
Answer Key:
1. The Goods and Service Tax (GST) is one of the indirect taxes.
2. The parliament passed it on 29th March 2017.
3. The act came into effect on 1st July 2017. It is a one point tax.
4. ‘One nation, one market, one tax’ is its motto.

5. What is progressive tax?
Answer Key:
1. In progressive tax, rate of taxation increases, (multiplier) as the tax base increases.
2. When income increases, the tax rate also increases.

6. What is meant by black money?
Answer Key:
1. Black money is funds earned on the black market for which no taxes have been paid.
2. Black money is the unaccounted money that is concealed from the tax administrators.

7. What is tax evasion?
Answer Key:
1. Tax evasion is the illegal evasion of taxes by individuals, corporates and trusts.
2. They include : under reporting of income, inflating deductions expenses, hiding money, Hiding interest in offshore accounts.

8. Write any two differences between tax and payments?
Answer Key:

Tax	Payments
It is a compulsory payment.	It is a voluntary payment.
No direct benefit to the tax payer.	Tax payer gets direct benefit.
E.g.: Income tax, Wealth tax.	E.g. : Stamp fee, Driving license fee etc.

VI. Brief answers.

1. Explain some direct and indirect taxes.
Answer Key:

a) Direct taxes:
1. It is the tax imposed on an individual or an organisation.
2. It is paid directly by the assessee.
3. The burden cannot be shifted to others.

Income tax:
1. The most common and most important tax levied on an individual.
2. It is charged directly based on the income of a person.
3. Depending on the level of income, the rate of tax varies.

Corporate tax:
1. It is levied on companies that exist separately entities apart from their share holders.
2. It is charged on royalties and interest gains from sale of capital assets are levied under this tax.

Wealth tax:
1. Benefits derived from property ownership attracts this tax.
2. Tax is levied every year on the same wealth.
3. This tax is levied on both individuals and companies.

b) Indirect taxes:
Indirect tax is when the burden of tax can be shifted to others.

Stamp duty:
It is a tax derived on official documents like Marriage Registration, Property documents sale of property, agreement of contracts.

Entertainment Tax:
Government levies tax on any entertainment like Movie tickets, amusement parks, tickets to exhibitions and sports events.

Excise duty:
1. It is Tax on manufactured goods at the movement of manufacture.
2. It is in addition to an indirect tax. GST comes under this category.
2. Write the structure of GST.

SGST - (State Goods and Services Tax)
1. It is intra state tax (within the state).
2. It includes VAT, purchase tax, sales tax, entertainment tax, luxury tax, state surcharge and cesses.

CGST (Central Goods and Service Tax)
It is intra state (with in the states) It includes Central Excise duty, countervailing duty, service tax, additional duty of customs, surcharge, education and secondary / higher secondary cess.

IGST (Integrated Goods and Service Tax)
1. It is inter state (among other states integrated) 5%, 12%, 18% and 28% are the major rates of IGST taxation.
2. All necessities of life like vegetables, and food grains are exempted from this tax.

3. What is black money? Write the causes of black money.
Answer Key:

1. Black money is funds earned on the black market income and other taxes have not been paid.
2. It is unaccounted that is concealed money from the tax administrators.

Causes of black money:
Several sources of black money are identified as causes.
1. Shortage of goods
2. Licensing proceding
3. Contribution of the industrial sector
4. Smuggling
5. Tax structure

VII. Activity and Projects.

1. Collect information about the local taxes (water, electricity and house tax etc).
Water Tax: (with respect to the city Chennai)
Answer Key:

1. The rate of water tax is fixed at the 1.5% of the assessed annual value.
2. The administration is related to water tax in the city of Chennai is vested with (CMWS and SB) Chennai Metro Water Supply and Sewage Board.
3. Water tax is levied on private individuals and businesses on tap water.
4. Payment for water tax can be done online receipts will be generated within 24 hours of payment.
5. The time line of payment will be specified in the demand notice.
6. Failing to make the payment even after demanding legal proceedings added with fine and other charges are made.

Electricity Tax:
1. Electricity tax is an excise duty that is charged on the supplies of electricity made on or after 1st October 2008.
2. The tax is charged on the final supply of electricity to the consumer.
3. The liability of payments arises at the time the electricity is supplied.
4. The tax at a rate of 5% of the consumption charges.

House Tax / Property Tax:
1. A property tax or a house tax is a tax on the value of a property like house, office building etc.
2. This tax is levied by the governing authority of the area in.which the property is located.

2. Students purchase some goods on the shop. The teacher and students discuss those goods, maximum retail price, purchasing price or GST.
Answer Key: