Which of the following are reasons for low tax to GDP ratio in India ? (i) Black economy (ii) Tax…
The large size of the black/shadow economy (i), widespread tax evasion (ii), and a vast unorganised/informal sector (iii) are primary structural reasons for India's low…
Choose your answer
Which of the following are reasons for low tax to GDP ratio in India ?
(i) Black economy
(ii) Tax evasion
(iii) Large informal sector
(iv) Big industrial houses
Answer and explanation
Correct answer B
The large size of the black/shadow economy (i), widespread tax evasion (ii), and a vast unorganised/informal sector (iii) are primary structural reasons for India's low tax-to-GDP ratio.
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RPSC Assistant Professor (College Education)