Directions (1-10): In the following passage, there are blanks, each
of which has been numbered. These numbers are printed below the
passage and against each, five words are suggested, one of which fits
the blank appropriately. Find out the appropriate word in each case.
Will the Budget bring down taxes? This is probably the most-asked
____1_____ in the weeks before the Finance Bill is tabled in
Parliament. But though we are a nation obsessed with tax, the
____2____ fact is that only 3% (4.1 crore Indians) of the total
population filed income tax returns in 2014-15. Only 1.6% actually
paid income tax. One out of two Indians who __3____ a return declared
zero taxable income.
Even so, the budget proposals relating to tax slabs, deductions and
exemptions are very closely watched by Indians, almost as if the
Budget is only about personal taxation. In the previous Budget,
nearly __4_____ had expected that the finance minister
will offer significant tax ____5_____ to the middle class to act as a
balm after the searing pain of demonetisation. However, though the
Budget did reduce the average taxpayer's tax burden, it also took
away some benefits. The cap on the deduction of home loan interest
was a ____6_____ shock for those with houses put out on rent.
This year, the expectations of a taxpayerfriendly budget are even
higher, given that five states have assembly elections in 2018 and
another three in 2019. Many ___7____ fear that the government will
roll out a populist Budget.
Admittedly, some of these measures, like a longer tenure for
education loan deduction, a separate deduction limit for pure
protection term plans or making NPS investments tax free, will have
an impact on revenue collections. The government, already under
pressure to rein in the fiscal deficit, may not be able to ____8_____
all such measures. But most of the other steps will not have any
____9______ impact on revenue collections. They will only make life
easier for common taxpayers, investors and consumers.
Facilitate donation and gifting of investments :
The tax laws need to be changed to allow donation and gifting of
securities, such as listed stocks and mutual funds, without tax
implications. The value of the gift or donation could be calculated
as the fair market value of the securities on the date of actual
transfer. This would give the donor or gift giver two benefits:
exemption from capital gains tax on the securities; and tax-deduction
on the amount from their income Right now, the process of gifting or
donating an amount invested in securities ____10____ liquidating them
and transferring the cash amount. The process leads to the investor
incurring capital gains tax. Changing this would not only promote the
practice of gifting investments but also allow people to donate to
worthy charities without worrying about taxability.
Q1.
(a)debate
(b)discussion
(c)format
(d)question
(e)path
Q2.
(a)throughout
(b)startling
(c)seemingly
(d)expecting
(e)obviously
Q3.
(a)seeking
(b)filed
(c)received
(d)normalised
(e)brought
Q4.
(a)many
(b)much of the
(c)everybody
(d)most
(e)anybody
Q5.
(a)burden
(b)insight
(c)leave
(d)relief
(e)donation
Q6.
(a)similar
(b)major
(c)much
(d)insignificant
(e)considerated
Q7.
(a)news
(b)economists
(c)critical
(d)consumer
(e)country
Q8.
(a)introduce
(b)show up
(c)pop
(d)summoned
(e)give out
Q9.
(a)deficit
(b)significant
(c)trivial
(d)peculiar
(e)return
Q10.
(a)reduced
(b)bringing about
(c)called an
(d)involves
(e)made
Solutions
S1. Ans.(d)
Sol.
S2. Ans.(b)
Sol.
S3. Ans.(b)
Sol.
S4. Ans.(c)
Sol.
S5. Ans.(d)
Sol.
S6. Ans.(b)
Sol.
S7. Ans.(b)
Sol.
S8. Ans.(a)
Sol.
S9. Ans.(b)
Sol.
S10. Ans.(d)
Sol.
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