BBA 1st Year Business Environment FEMA Short Question Answer

The other is the “Public Account of India”, which includes all other receipts and disbursements, such as deposits, service funds and remittances which will go into the public account, which is also not subject to the vote of parliament.

The presentation of the annual financial statement is followed by a general discussion on the budget in both the houses of the parliament. The estimates of expenditures from the consolidated funds of India are then placed before the Lok Sabha in the form of demands for grants. Ordinarily, a separate demand is made for each ministry. All withdrawal of money from the consolidated funds are here after authorised by an appropriation act passed by the parliament every year.

The tax proposals of the budget are embodied in another bill, which is passed as the financial act of year.
The receipts and expenditures of the control and state government are audited by the Controller and the Auditor-General who is independent and his reports on the accounts are submitted to the President/Governor for having them laid before Parliament/State Legislature.

The Constitution of India Provides that

1. No tax can be levied on or cl1ected except by authority of law.

2. No expenditure can be incurred from public funds except in the manner provided in the constitution.

3. The executive authorities must spend public money only in manner sanctioned by parliament in case of union and by state legislative in case of a state.

Q. 4. Discuss about the finance of the union and states.

Ans. The Constitution of India has earmarked separate sources of revenue for the union and the states.

Sources of Revenue for the Union

The following are the sources of revenue for the union;

1. Taxes on income other than agricultural income.

2. Duties and custom’s including export duties.

3. Duties of excise on tobacco and other goods manufactured or produced in India, except alcoholic liquors, for human consumption and option of optimum selling is also restricted. All other narcotic drugand narcotics are prohibited

4. Corporation tax.

5. Taxes on the capital values of assets, exclusive of agricultural land of individual companies; taxes on the capital of companies.

6. Estate duty in respect of property other than agricultural land.

7. Duties in respect of succession of property other than agricultural land.

8. Terminal taxes on goods of passengers carried by the railways, by sea, air, taxes on railway fares and flights.

9. Taxes other than stamp duties on transactions on stock exchange.

10. The rate of stamp duty on bills of exchange.

11. Taxes on sale or purchase of newspapers and on advertisements published there in.

12. Fees in respect of any of the matters in the union list, but not including fees taken in any court.

13. Any tax not mentioned in the state list or concurrent list.

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