Important questions asked during banking interviews :-
1. Who presented the first Finance Budget of Independent India?
The first Finance Minister Sh. R. K. Shanmugham Chetty, presented the first finance budget of independent India.
2. Is there any difference between Income tax and Corporation Tax?
Income tax is levied on individuals by the central Government, and proceeds are shared between the centre and the states while corporation is the tax levied on the income (profit) of the companies.
3. What do you understand by the term disinvestment?
Government makes a number of investments in public sector undertaking. When it dilutes its stake in these undertakings, it is defined as disinvestment.
4. What is National Debt?
The term national debt is the amount borrowed by the Central Government in order to finance the budget deficit.
5. Are you familiar with the different taxes that are payable in the country?
Value Added Tax: State Governments levy this tax on goods at the point of sale. It is linked to the difference between the value of the output and the cost of inputs for producing it. The intention behind charging the value added tax is to charge the company only for the value of its inputs to the manufacturing process and not the total input cost. VAT minimizes the chances of increasing the tax quantum at every stage of the production process.
Goods and Service Tax: GST is a taxation attempt to consolidate and simplify the indirect tax structure which currently consists of excise, value added tax, service tax etc.
Customs Duties: These are charges recovered from export and import of goods to the country.
Excise Duty: It is the tax levied on goods produced within the country.
Service Tax: it is payable by those service sectors which have been identified for payments of charges on their services rendered.
6. How is income tax charged?
The government in its annual budget indicates the income tax slabs that are applicable every year on the income of individuals and companies. There is normally an exemption limit below which income tax is not chargeable. These are also certain investments which are given benefits according to specified limits. The income tax rates presently are different for male and female individuals, senior citizens, very senior citizens and companies.
Taxation: It is an important tool in the hands of a government to raise revenues and control wealth. By imposing income tax a government generates revenue from those; earning higher incomes as compared to those incomes are less. Those at the bottom of the earning pyramid are not taxed as there is no surplus with them for payment of income tax.
7. What is Peak Rate?
The term peak rate is common in Indian budget and refers to maximum rate of customs duty which is applied on any time.
8. What are Indirect Taxes?
The taxes imposed on goods that are manufactured, imported or exported.
9. What are Direct taxes?
These are taxes implied directly on the individuals or customers, corporate tax, income tax are the examples of direct taxes.
10. What is Deficit Financing?
To fill the gap in total expenditure of the Central Government and its total receipts. The government borrows money from RBI other domestic sources such as banks, and financial institutions and borrow from foreign governments or multilateral institutions such as World Bank, IMF known as deficit financing.