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Guys who are planning to learn and understand the topics of 10th Social Science Civics can grab this Tamilnadu State board solutions for Chapter 5 India’s International Relations Questions and Answers from this page for free of cost. Make sure you use them as reference material at the time of preparation & score good grades in the final exams.

Students who feel tough to learn concepts can take help from this Samacheer Kalvi 10th Social Science Book Solutions Guide Pdf, all the Questions and Answers can easily refer in the exams. Go to the below sections and get 10th Social Science Civics Chapter 5 India’s International Relations Tamilnadu State Board Solutions PDF.

Tamilnadu Samacheer Kalvi 10th Social Science Civics Solutions Chapter 5 India’s International Relations

Do you feel scoring more marks in the 10th Social Science Civics Grammar sections and passage sections are so difficult? Then, you have the simplest way to understand the question from each concept & answer it in the examination. This can be only possible by reading the passages and topics involved in the 10th Social Science Civics Board solutions for Chapter 5 India’s International Relations Questions and Answers. All the Solutions are covered as per the latest syllabus guidelines. Check out the links available here and download 10th Social Science Civics Chapter 5 textbook solutions for Tamilnadu State Board.

India’s International Relations Textual Exercise

I. Choose the correct answer.

Question 1.
Me Mahon Line is a border between ………………
(a) Burma and India
(b) India and Nepal
(c) India and China
(d) India and Bhutan
Answer:
(c) India and China

Question 2.
India is not a member of which of the following
(1) G20
(2) ASEAN
(3) SAARC
(4) BRICS
Select the correct option:
(a) 4 only
(b) 2 and 4
(c) 2, 4 and 1
(d) 1,2 and 3
Answer:
(b) 2 and 4

Question 3.
OPEC is ………..
(a) An international insurance Co.
(b) An international sports club
(c) An Organisation of Oil Exporting Countries
(d) An international company
Answer:
(c) An Organisation of Oil Exporting Countries

Question 4.
With which country does India share its longest land border?
(a) Bangladesh
(b) Myanmar
(c) Afghanistan
(d) China
Answer:
(a) Bangladesh

Question 5.
Match the following and choose the correct answer form the codes given below.

(a) 3 1 4 2
(b) 3 1 2 4
(c) 3 4 1 2
(d) 4 3 2 1
Answer:
(a) 3 1 4 2

Question 6.
How many countries share their border with India?
(a) 5
(b) 6
(c) 7
(d) 8
Answer:
(c) 7

Question 7.
Which two island countries are India’s neighbours?
(a) Sri Lanka and Andaman island
(b) Maldieves and Lakshadweep island
(c) Maldieves and Nicobar island
(d) Sri Lanka and Maldieves
Answer:
(d) Sri Lanka and Maldieves

Question 8.
Which Indian state is surrounded by three countries?
(a) Arunachal Pradesh
(b) Meghalaya
(c) Mizoram
(d) Sikkim
Answer:
(d) Sikkim

Question 9.
How many Indian states have their boundary with Nepal?
(a) Five
(b) Four
(c) Three
(d) Two
Answer:
(a) Five

Question 10.
Who drew up the borders for newly independent Pakistan?
(a) Lord Mountbatten
(b) Sir Cyril Radcliffe
(c) Clement Atlee
(d) None of the above
Answer:
(b) Sir Cyril Radcliffe

II. Fill in the blanks.

1. …………… is a small Himalayan kingdom.
2. India’s gateway to South East Asia is ………….
3. …………… is a buffer country between India and China.
4. A strip of land …………. belongs to India on West Bengal and Bangladesh border.
5. …………… is known as the Land of a thunderbolt.
6. India and Sri Lanka are separated by …………
Answers:
1. Bhutan
2. Myanmar
3. Nepal
4. Teen Bigha Corridor
5. Bhutan
6. Palk strait

III. Consider the following statement and tick the appropriate answer

Question 1.
The Kaladan transport project by India and Myanmar consists of which of the following modes of transport?
1. Roads
2. Railways
3. Shipping
4. Inland water transport
Select the correct answer using the codes given below
(a) 1, 2 and 3 only
(b) 1, 3 and 4 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4
Answer:
(b) 1, 3 and 4 only

Question 2.
Assertion (A): India and France launched International Solar Alliance.
Reason (R): It was done to bring together countries between Tropic of Cancer and Tropic of Capricorn for co-operation of solar energy.
(a) A is correct and R is the correct explanation of A
(b) A is correct and R is not the correct explanation of A
(c) A is wrong and R is correct
(d) Both are wrong
Answer:
(a) A is correct and R is the correct explanation of A

Question 3.
Which of the following statements are true?
Statement 1. ICCR has initiated a Tagore Chair in University of Dhaka.
Statement 2. Mayanmar is India’s gateway to western countries.
Statement 3. Nepal and Bhutan are land locked nations.
Statement 4. Sri Lanka is one of the partner in Nalanda University Project of India.
(a) 1, 2 and 3
(b) 2, 3 and 4
(c) 1, 3 and 4
(d) 1, 2 and 4
Answer:
(c) 1, 3 and 4

Question 4.
Assertion (A): OPEC has vested interest in India’s economic growth.
Reason (R): Devoid of necessary oil resources India strongly focuses on agriculture and industrial production.
(a) A is correct and R explains A
(b) A is wrong and R is correct
(c) Both are correct
(d) Both are wrong
Answer:
(c) Both are correct

IV. Match the following.

Answers:
1. (e)
2. (d)
3. (b)
4. (c)
5. (a)

V. Give Short Answers.

Question 1.
Name the neighbouring countries of India.
Answer:
Afghanistan, Pakistan, Bhutan, China, Nepal, Bangladesh, Myanmar, Sri Lanka, and the Maldives.

Question 2.
Write a short note on Strategic partnetship Agreement (SPA).
Answer:
Indo-Afghan relation was strengthened by the Strategic Partnership Agreement (SPA). SPA provides assistance to re-build Afghan’s infrastructure, institutions, agriculture, water, education, health and providing duty-free access to the Indian market.

Question 3.
Mention the member countries of BRICS.
Answer:
Brazil,. Russia, India, China and South Africa.

Question 4.
What do you know about Kaladan Multi – Model Transit Transport?
Answer:
India is building the Kaladan Multi-Model Transit Transport, a road-river-port cargo transport project to link Kolkata to Sittwe in Myanmar. A project aiming to connect Kolkata with Ho Chi Minh City on the South Sea for the formation of an economic zone will have a road pass through Myanmar, Cambodia and Vietnam and work on the first phase connecting Guwahati with Mandalay is currently undemay.

Question 5.
How do you assess the importance of Chabahar agreement?
Answer:

1. A trilateral agreement called the Chabahar Agreement was signed between India, Afghanistan and Iran, which has led to the establishment to transit and transport corridor among three countries using Chabahar port.
2. This port is seen as golden gateway for India to access land locked markets of Afghanistan and central Asia by passing Pakistan.

Question 6.
List out any five global groupings in which India is a member.
Answer:
India is a member of formal groupings like UNO, NAM, SAARC, G20 and the Commonwealth.

Question 7.
What is the role of Japan India Institute of Manufacturing (JIM)?
Answer:
In the manufacturing sector Japan announced its co-operation of training 30,000 Indian people in the Japan India Institute of Manufacturing (JIM) providing Japanese style manufacturing skills to enhance India’s manufacturing Industry base and contribute to “Make in India” and “Skill India” initiatives.

VI. Answer in detail.

Question 1.
Highlight India and International organisation with special reference to any three India’s global groupings.
Answer:
India is potential superpower and has a growing international influence all around the world. Being a newly industralised county, India has great history of collaboration with several countries. It has acted as prominent member of several international organizations and has been a founding member of some. India is a member of formal grouping like UNO, NAM, SAARC, G20 and the Common Wealth.

India has been extending a helping hand to the UNO, in all its efforts in ending military conflicts, and in promoting peace and progress among the nations.

Name of the Global Grouping	Name of the Member Countries	Objectives
IBSA	India, Brazil, South Africa	To focus on agriculture, education, energy, trade, culture and defence among others
BCIM	Bangladesh, China, India,Myanmar	To respond to threats such as natural disasters and data breaches and protect business interests
BBIN	Bangladesh, Bhutan, India, Nepal	For energy development

Question 2.
Trace the reason for the formation of BRICS and write its objectives. BRICS:
Answer:

1. Brazil, Russia, India, China, and South Africa are leading emerging economies and political powers at the regional and international level.
2. The BRICS organisations headquarters is in Shangai, China.
3. BRICS opened up a possibility for countries of Global South to challenge the Global North.

Reason for the formation of BRICS:

1. To be an alternative to world bank and IMF to challenge U.S supremacy.
2. To provide self owned and self – managed organisations to carry out developmental and economical plans in its member nations.

Objectives of BRICS

1. To achieve regional development.
2. It act as a bridge between developed and developing countries.
3. To contribute extensively to development of humanity.
4. To establish a more equitable and fair world.
5. Boost intra BRICS trade in their local currencies to increase trade co-operation and cope with the current international financial crisis.
6. To promote the technological information exchange among the member states.
7. To enhance inclusive economic growth that will lead to an increase in the creation of jobs, fight against poverty and accelerate the economic transformation of members.

Question 3.
Mention OPEC missions and how does it help other countries?
Answer:
OPEC’s mission:

1. To coordinate oil policies in its member countries
2. Help stabilise oil markets
3. To secure fair and stable income to petroleum producers
4. An efficient, economic and regular supply of oil to consuming nations
5. A fair return on capital to those investing in the petroleum industry

How does OPEC help other countries:
The OPEC Fund for International Development (OPID) is an institution that helps finance projects with low interest loans. It also provides grants to social and humanitarian projects. OPEC has an Information Centre with over 20,000 volumes including books, reports, maps and conference proceedings related to petroleum, energy and the oil market. The Information Centre is open to the public and is often used by researchers and students.

VII. Project and activity

Question 1.
Students can be asked to collect information form newspapers about India’s relatio with world countries.
Answer:
Do it yourself.

Question 2
Group project involving students to prepare an album with pictures on India’s latest projects with its neighboring countries.
Answer:
Do it yourself.

India’s International Relations Additional Questions

I. Choose the correct answer.

Question 1.
India was a dependent country till …………
(a) August 13, 1947
(b) August 15, 1947
(c) January 26, 1980
Answer:
(b) August 15, 1947

Question 2.
In which year Farakka accord on sharing of Ganga water signed?
(a) 1970
(b) 1973
(c) 1975
(d) 1977
Answer:
(d) 1977

Question 3.
In spite of past conflicts both ……………. are trying to come closer.
(a) India and Bangladesh
(b) India and Afghanistan
(c) India and Pakistan
Answer:
(c) India and Pakistan

Question 4.
…………….. is a landlocked nation.
(a) Bhutan
(b) Nepal
(c) Both (a) and (b)
(d) Pakistan
Answer:
(c) Both (a) and (b)

Question 5.
…………. was the first country to recoginse the Republic of china.
(a) England
(b) Russia
(c) India
Answer:
(c) India

Question 6.
Bangladesh got freedom from …………….. in …………
(a) India, 1951
(b) Nepal, 1961
(c) Pakistan 1971
Answer:
(c) Pakistan 1971

Question 7.
Which country is an important partner in our energy needs for petroleum and natural gas?
(a) Bangladesh
(b) Sri Lanka
(c) Myanmar
(d) All the above
Answer:
(c) Myanmar

II. Fill in the blanks :

1. ……………… relation was strengthened by the strategic-Partnership Agreement.
2. India was the first nation to acknowledge ……………. as an independent country.
3. By the Farakka Barrage issue, the distribution of …………. water was settled amicably.
4. India and Bangladesh share ……………. common rivers.
5. ………….. known as a land of thunder bolt.
6. India declared the bilateral trade relation known as …………. to …………..
7. ………….. being the manufacturing hub of the world.
8. Maldives is located south of Lakshadweep islands in the ……………
9. India’s second largest border is shared with …………….
10. …………… is a small land locked country.
Answers:
1. Indo-Afghan
2. Bangladesh
3. Ganga
4. 54
5. Bhutan
6. Bharat, Bhutan
7. China
8. Indian Ocean
9. Myanmar
10. Nepal

III. Match the following.

a.

1.	Pasupati and Janakpu	(a)	India
2.	Maldives	(b)	The borderline between India and China
3.	Bhutan	(c)	Nepal
4.	Varanasi and four Dhaams	(d)	Himalayan kingdom
5.	Me Mahoon Line	(e)	Indian Ocean

Answer:
1. (c)
2. (e)
3. (d)
4. (a)
5. (b)

IV. Short Answer

Question 1.
Explain about LOC.
Answer:

1. The ceasefire line determined in 1949 was called the LOC after 1972.
2. This is the boundary that came to be agreed between India and Pakistan under the Shimla agreement of 1972.
3. It was called Radcliffe line at the time of partition 1947. (Radcliffe was the chairman of the border commission) This is now called LOC.

Question 2.
Which is the fundamental factor of India’s foreign policy?
Answer:
The recognition of sovereign equality of all people living in various parts of the world is the fundamental factor in India’s foreign policy.

Question 3.
Give a short note on BRICS payment system.
Answer:
At the 2015 BRICS summit, ministers from the BRICS nations initiated consultation a payment system that would be an alternative to the society for world wide Inter Bank Financial Telecommunication system (SWIFT).

Question 4.
Explain India’s role towards China.
Answer:
When China became republic in 1949. India was the first country to recognize it. Both the countries have successfully attempted to restore the economic lines. China has formally declared that she will back India’s claim for becoming a permanent member of united Nation’s Security Council.

Question 5.
List out the important Pilgrimage destination in India.
Answer:
Pashupati and Janakpur are traditional centres in Nepal where as Varanasi and the four Dhaans (Badrinathpuri, Dwareka and Rameshwaram) are important pilgrimage destination in India.

Question 6.
Prove that India is a very good friend of Bangladesh.
Answer:
It is due to the effort and support of Smt.Indira Ghandhi, the Prime Minister of India, Bangladesh got freedom from Pakistan in 1971. In 1972, a 25 years treaty of friendship co-operation and peace was sighed in Dacca by India and Bangladesh. The Farakka Barrage issue regarding the distribution of Ganga water was settled amicably. Thus India is a very good friend of Bangladesh. Our friendship with Bangladesh will go on forever.

V. Detail.

Question 1.
Discuss India and its Neighbours?
Answer:

1. India has always been known as a peace – loving country. India is surrounded by many neighbouring countries with whom she has traditionally tried to maintain friendly and good neighbourly relations.
2. India’sposition is unique in its neighbourhood.
3. India’s neighbours had been a part of a homogeneous culture prevailing in the Indian subcontinent for last five thousand years.
4. India is a vast country with Pakistan and Afghanistan to the north – west.
5. China, Nepal, Bhutan to the North.
6. Bangladesh to the east.
7. Myanmar to the Far East.

Sri Lanka (from South – East) and Maldives (from South – West) are two countries that lie close to India separated by the Indian ocean. India has cordial historical, religious, economic, ethnic and linguistic relationship will all of these countries.

We think the data given here clarify all your queries of Chapter 5 and make you feel confident to attempt all questions in the examination. So, practice more & more from Tamilnadu State Board solutions for 10th Social Science Civics Chapter 5 India’s International Relations Questions and Answers & score well. Need any information regarding this then ask us through comments & we’ll give the best possible answers very soon.

Guys who are planning to learn and understand the topics of 10th Social ScienceEconomics can grab this Tamilnadu State board solutions for Chapter 4 Government and Taxes Questions and Answers from this page for free of cost. Make sure you use them as reference material at the time of preparation & score good grades in the final exams.

Students who feel tough to learn concepts can take help from this Samacheer Kalvi 10th Social Science Book Solutions Guide Pdf, all the Questions and Answers can easily refer in the exams. Go to the below sections and get 10th Social ScienceEconomics Chapter 4 Government and Taxes Tamilnadu State Board Solutions PDF.

Tamilnadu Samacheer Kalvi 10th Social Science Economics Solutions Chapter 4 Government and Taxes

Do you feel scoring more marks in the 10th Social ScienceEconomics Grammar sections and passage sections are so difficult? Then, you have the simplest way to understand the question from each concept & answer it in the examination. This can be only possible by reading the passages and topics involved in the 10th Social ScienceEconomics Board solutions for Chapter 4 Government and Taxes Questions and Answers. All the Solutions are covered as per the latest syllabus guidelines. Check out the links available here and download 10th Social ScienceEconomics Chapter 4 textbook solutions for Tamilnadu State Board.

Government and Taxes Textual Exercise

I. Choose the correct answer.

Question 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:
(a) Union, state and local

Question 2.
In India, taxes are including:
(a) Direct taxes
(b) Indirect taxes.
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)

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

Question 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:
(c) Income tax

Question 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:
(c) Goods and service tax

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

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

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

Question 9.
Tax evasion is the illegal evasion of taxes by …………..
(a) Individuals
(b) Corporations
(c) Trusts
(d) All of the above
Answer:
(d) All of the above

Question 10.
Payments are:
(a) Fees and fines
(b) Penalities and forfeitures
(c) None of the above
(d) Both (a) and (b)
Answer:
(d) Both (a) and (b)

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. ………….. tax is levied on companies that exist as separate entities from their shareholders.
5. The Goods and Service Tax act came into effect on ………………
6. The unaccounted money that is concealed from the tax administrator is called …………….
Answers:
1. Tax
2. Taxation
3. Direct
4. Corporate
5.1 July 2017
6. Black money

III. Which of the following statement is correct about GST?

Question 1.
(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 unified 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:
(c) i, iii and iv are correct

Question 2.
Choose the incorrect statements.
(i) Shortage of goods, whether natural or artificial, is the root cause of black money.
(ii) Industrial sector has been the major contributor to black money.
(iii) Smuggling is one of the major sources of black money.
(iv) When the tax rate is low, more black money is generated.
(a) i and ii
(b) iv
(c) i
(d) ii and iii
Answer:
(b) iv

IV. Match the following.

Answer:
1. (d)
2. (e)
3. (a)
4. (b)
5. (c)

V. Give Short Answers.

Question 1.
Define tax.
Answer:
According to Prof. Seligman, “A tax is 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”.

Question 2.
Why we pay tax to the government?
Answer:
The levying of taxes aims to raise revenue to fund governance or to alter prices in order to affect demand. States and their functional equivalents throughout history have used money provided by taxation to carry out many functions. Some of these include expenditures on economic infrastructure (transportation, sanitation, public safety, education, healthcare our systems, to name a few), military, scientific research, culture and the arts, public works and public insurance and the operation of government itself. A government’s ability to raise taxes is called its fiscal capacity.

Question 3.
Write the canons of tax system?
Answer:
Canon of equity, Canon of certainty, canons of Economy and Convenience, Canon of Productivity and Canon of Elasticity.

Question 4.
What are the types of tax? Give examples.
Answer:
(i) J.S. Mill defines a direct tax as “one which is demanded from the very persons who it is intended or desired should pay it.” Some direct taxes are income tax, wealth tax and corporation tax.

(ii) If the burden of the tax can be shifted to others, it is an indirect tax. The impact is on one person while the incidence is on the another person. Therefore, in the case of indirect taxes, the tax payer is not the tax bearer. Some indirect taxes are stamp duty, entertainment tax, excise duty and goods and service tax (GST).

Question 5.
Write short note on Goods and Service Tax.
Answer:
The Goods and services taxes is one of the indirect taxes levied when a consumer buys a good or service. The tax came into effect on 1 July 2017. ’ The motto is one nation, one market, one tax.

Question 6.
What is progressive tax?
Answer:
Progressive tax rate is one in which the rate of taxation increases (multiplier) as the tax base increases (multiplicand). The amount of tax payable is calculated by multiplying the tax base with the tax rate. In the case of a progressive tax, the multiplicand (income) increases. When income increases, the tax rate also increases. This is known as a progressive tax.

Question 7.
What is meant by black money?
Answer:
Black money is unaccounted money. It is the income on which taxes have not been paid. In other words, the unaccounted money that is concealed from the tax administrator is called black money.

Question 8.
What is tax evasion?
Answer:
Tax evasion is the illegal evasion of taxes by individuals, corporations and trusts. Tax evasion often entails taxpayers deliberately misrepresenting the true state of their affairs to the tax authorities to reduce their tax liability and includes dishonest tax reporting, such as declaring less income, profits or gains than the amounts actually earned, or overstating deductions.

Question 9.
Write some causes of tax evasion.
Answer:

1. Hight rate of taxes.
2. Low educational level of population.
3. Complicated procedures of tax payments.
4. Lack of citizen’s tax integrity.

Question 10.
What is the difference between tax and payments?
Answer:

S. No.	Tax	Payments
1	Tax is compulsory to the government without getting any direct benefits.	Fee is the payment for getting any service.
2	If the element of revenue for general purpose of the state predominates, the levy becomes a tax.	While a fee is a payment for a specific benefit privilege although the special to the primary purpose of regulation in public interest.
3	Tax is a compulsory payment.	Fee is a voluntary payment.
4	If tax is imposed on a person, he has to pay it; otherwise he has to be penalised.	On the other hand fee is not paid if the person do not want to get the service.
5	In this case, tax payer does not expect any direct benefit. Example: Income tax, gift box, wealth tax, VAT etc.	Fee payer can get direct benefit for paying fee. Examples: stamp fee, driving license fee, government registration fee

VI. Brief Answer

Question 1.
Briefly explain the role of government in development policies.
Answer:
The role of government and development policies:
In India, the three levels of governments, namely, union, state and local, have been carrying out various functions for the benefit of people and society at large. These roles are into divided into seven categories for easy understanding.

Defence: This is an essential security function to protect our nation from our enemies. We know that we have three services, namely, army, navy and air force. The Union government is responsible for creating and maintaining defence forces.

Foreign Policy: In today’s world, we need to maintain friendly relationships with all the other countries in the world. India is committed to world peace. We should also maintain cordial economic relationships through exports and imports, sending and receiving investments and labour. This service is also provided by the Union government.

Conduct of periodic elections: India is a democratic country. We elect our representatives to Parliament and state assemblies. The Union government creates laws and administrative system and conducts elections to these two legislature institutions. Similarly the state governments conduct elections to local bodies within the state.

Law and order: Both the Union and state governments enact numerous laws to protect our rights, properties and to regulate our economy and society. To settle disputes, the Union government has a vibrant judicial system consisting of courts at the national, state and lower levels and state governments take the responsibility for administering the police force in respective states.

Public administration and provision of public goods: The government generally administers the economy and society through various departments, for example, revenue department, schools, hospitals, rural development and urban development. The list of departments with the Union and state governments are available in the public domain. The local governments provide public goods like local roads, drainage, drinking water and waste collection and disposal.

Redistribution of income and poverty alleviation: Governments collect various taxes to finance the various activities mentioned earlier. The taxes are collected in a way that the high-income people can bring in more tax revenue to the government than the poor. The governments also spend money such that the poor are given some basic necessities of life like food, shelter, clothing education, health care and monthly income to the very poor persons. Thus collecting taxes and spending for the poor is how the government redistributes income and introduces measures to reduce poverty.

Regulate the economy: The Union government, through the Reserve Bank of India, controls money supply and controls the interest rate, inflation and foreign exchange rate. The main objective is to remove too much of fluctuation in these rates. The Union also controls the economy through various other agencies such as Securities Exchange Board of India and Competition Commission of India. All the governments in India run public sector enterprises to provide important goods and services at affordable rates to the people.

Question 2.
Explain some direct and indirect taxes.
Answer:
Taxes are compulsory payments to Government by the people without expecting anything in return. Taxes are of two types: Direct taxes and Indirect taxes. .
Direct Taxes: A tax imposed on an individual or organisation which is paid directly is called as Direct taxes.

Some of the Direct taxes are explained below:

Income Tax:

1. It is charged directly based on the income of a person.
2. The rate at which it is charged varies depending on the level of income.

Corporate Tax:

1. It is charged on companies that exist as separate entities from their shareholders.
2. It is charged on interest gains from sale of capital assets located in India.
3. It is also charged for fees for a technical services and dividends.

Wealth Tax:

1. It is charged on the benefits derived from property ownership, on its current market value. .

Indirect Taxes:
Stamp Duty:

1. It is a tax that is paid on official documents like marriage registration or documents related to a property in contractual agreements.

Entertainment Tax:

1. It is a tax that is charged by the Government on any source of entertainment provided. Eg: Amusement Parks, Movie tickets, Exhibitions.

Excise Duty:

1. It is levied on the goods at the time of its manufacture.
2. In addition to sales tax, this tax is imposed.

Goods and services Tax:

1. It is levied when a consumer buys a goods or services.
2. GST varies with the nature of the goods.

Question 3.
Write the structure of GST.
Answer:
Structure of Goods and Service Tax (GST):
State Goods and Service Tax (SGST): Intra state (within the state) VAT/sales tax, purchase tax, entertainment tax, luxury tax, lottery tax and state surcharge and cesses.

Central Goods and Service Tax (CGST): Intra state (within the state) Central Excise Duty , service tax, countervailing duty, additional duty of customs, surcharge, education and secondary/higher secondary cess

Integrated Goods and Service Tax (IGST): Inter state (integrated GST) There are four major GST rates: 5%, 12%, 18% and 28%. Almost all the necessities of life like vegetables and food grains are exempted from this tax.

Question 4.
What is black money? Write the causes of black money.
Answer:
Black money is funds earned in the black market on which income and other taxes have not been paid.

Cause of Black money:

1. Shortage of goods: Even if it is shortage occurring naturally or created artificially, it is the root cause of black money.
2. Licensing proceeding: Permit, quota, license all these are associated with maldistribution of commodities in short supply which results in black money.
3. Contribution of the Industrial sector: For example the controller of public limited companies tries to buy commodities at lower prices and bill them at high amount and the balance goes to them personally.
4. Smuggling: Precious metals like gold and silver, electronic goods, textiles were levied heavy excise duty. To avoid paying these duties, smuggling is done illegally that results in black money.
5. Tax structure: When tax rates are high, tax evasion naturally arises that leads to generation of black money.

Question 5.
Explain the role of taxation in economic development.
Answer:
The role of taxation in developing economics is as follows.
Resource mobilisation: Taxation enables the government to mobilise a substantial amount of revenue. The tax revenue is generated by imposing direct taxes such as personal income tax and corporate tax and indirect taxes such as customs duty, excise duty, etc.

Reduction in equalities of income: Taxation follows the principle of equity. The direct taxes are progressive in nature. Also certain indirect taxes, such as taxes on luxury goods, is also progressive in nature.

Social welfare: Taxation generates social welfare. Social welfare is generated due to higher taxes on certain undesirable products like alcoholic products.

Foreign exchange: Taxation encourages exports and restricts imports, Generally developing countries and even the developed countries do not impose taxes on export items.

Regional development: Taxation plays an important role in regional development, Tax incentives such as tax holidays for setting up industries in backward regions, which induces business firms to set up industries in such regions.

Control of inflation: Taxation can be used as an instrument for controlling inflation. Through taxation the government can control inflation by reducing the tax on the commodities.

VII. Project and activity

Question 1.
Collect information about the local taxes (water, electricity and house tax etc).
Answer:
Do it yourself.

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

Government and Taxes Additional Questions

I. Choose the correct answer.

Question 1.
……………. is an essential security function to protect our nation from our enemies.
(a) Foreign policy
(b) Defence
(c) Excise duty
Answer:
(b) Defence

Question 2.
From …………………. many economists had given lists of Canons of taxation.
(a) Marshall
(b) Adam Smith
(c) Pigou
(d) Malthus
Answer:
(b) Adam Smith

Question 3.
In India taxes are collected by all the ……………. tiers of government.
(a) two
(b) three
(c) four
Answer:
(b) three

Question 4.
A Government’s ability to raise taxes is called its …………………. capacity.
(a) Fiscal
(b) Monetary
(c) Defence
(d) None of these
Answer:
(a) Fiscal

Question 5.
The taxes on properties are collected by ……………… Governments.
(a) Local
(b) State
(c) Union
Answer:
(a) Local

Question 6.
The act of GST was passed in the parliament on 29th March :
(a) 2015
(b) 2016
(c) 2017
(d) 2018
Answer:
(c) 2017

Question 7.
…………….. is one of the major sources of black money.
(a) Saving
(b) Smuggling
(c) Shortage of good
Answer:
(b) Smuggling

II. Fill in the blanks :

1. The Union government is responsible for creating and maintaining ……………..
2. The ……………. conduct elections to local bodies within the state.
3. Tax means …………………
4. The present Indian tax system is based on the …………….. tax system.
5. …………… was the first country to implement GST in 1954.
Answers:
1. defence forces
2. state government
3. estimate
4. ancient
5. France

III. Match the following.

1.	Excise duty	(a)	Major sources of black money
2.	Stamp duty	(b)	Unaccounted money
3.	Entertainment	(c)	Tax paid for official documents
4.	Black money	(d)	Movie ticket
5.	Smuggling	(e)	Manufactured goods

Answers:
1. (e)
2. (c)
3. (d)
4. (b)
5. (a)

IV. Short Answer:

Question 1.
Who levies tax? why?
Answer:
Tax is levied by the Government for the development of the State’s economy.

Question 2.
Write about corporate tax.
Answer:
It is levied on companies that exist as separate entities from their shareholders. It is charged on royalties, interest gains from sale of capital assets located in India and fees for a technical services and dividends.

Question 3.
What do you understand by local tax?
Answer:
Local tax is a tax charged by a local government such as a city or country.

Question 4.
Write about stamp duty.
Answer:
Stamp duty is a tax is paid on official documents like marriage registration or documents related to a property and in some contractual agreements.

Question 5.
What is the aim motto of goods and services tax?
Answer:
It aims to replace all indirect taxes levied on goods and services by the Central and State Governments. Its motto is “One nation, one market, one tax”.

V. Answer the following in detail.

Question 1.
What are the effects of Tax evasion.
Answer:

1. Tax evasion results in black money.
2. It prevents the resource mobilisation of the Central Government leading to shortage of funds.
3. It leads to distorting saving and Investment pattern of the economy and availability of resources for various sectors of the economy.
4. Tax evasion undermines the equity attributes of the tax system.
5. Tax evasion and black money encourage the concentration of economic power in few hands.
6. It consumers time and energy of tax administration to find out the tax evaders and put them under the right stream.

Question 2.
Explain the causes of tax evasions.
Answer:
(i) Tax evasion resulting in black money prevents the resource mobilisation efforts of the Union government. Shortage of funds distorts implementation of developmental plans and forces the government to resort to deficit financing in case public expenditure is inelastic.

(ii) Tax evasion interferes with the declared economic policies of the government by distorting saving and investment patterns and availability of resources for various sectors of the economy.

(iii) Tax evasion undermines the equity attribute of the tax system. Honest taxpayers willingly bear disproportionate tax burden, feel demoralised and lured to join the tax evaders’ camp.

(iv) Tax evasion and black money encourage the concentration of economic power in the hands of undeserving groups in the country, which, in turn, is a threatening to the economy in its way.

(v) Evasion of tax consumes time and energy of tax administration to disentangle the intricate manipulations of tax dodgers.

We think the data given here clarify all your queries of Chapter 4 and make you feel confident to attempt all questions in the examination. So, practice more & more from Tamilnadu State Board solutions for 10th Social ScienceEconomics Chapter 4 Government and Taxes Questions and Answers & score well. Need any information regarding this then ask us through comments & we’ll give the best possible answers very soon.