RBI OFFICER GRADE ‘B’ PHASE-I EXAM Held on : 28.05.2022 (Part-II)

Total Questions: 50

41. Read the following passage carefully and answer the questions given below it.

From the questions (41-48)
The success of the bold direct taxation proposals contained in the Union budget for 2004–05 will have a crucial bearing on the realization of the targeted fiscal deficit projection for the year, according to economists and tax consultants. In particular, the amnesty scheme introduced to harness black money is being seen as vital to the government’s calculations. Finance minister announced in his budget presentation that he was expecting to augment direct tax revenues by 15 to 16 per cent. This has led analysts to conclude that the attainment of the government’s direct taxation target would be largely dependent on widening the tax net and would also significantly depend on the success of the amnesty scheme announced to induct black money into the mainstream economy. Most tax consultants opined that the amnesty scheme would draw an extremely favorable response. “It is a tremendous opportunity.” The finance minister said that residents of metropolitan cities who owned cars, telephones and travelled abroad would be roped into tax net. The budget has also introduced an “estimated income scheme” for retail traders with a turnover less than Rs.40 lakh. Their income would be estimated at 5 per cent of the turnover and those claiming lower incomes would be subjected to audit. “This would also serve to rope in assessees after the earlier presumtive Rs.1400 scheme was a failure.” Another bold and much-sought-after change introduced in the budget is the abolition of taxation of dividend in the hands of the shareholder. Instead, companies would be liable to pay 20 per cent tax on dividend distributed.
What is the expectation of finance minister in his budget 2004 to 05?

(1) It will be beneficial to the retail dealers
(2) It will be beneficial to the lower income group
(3) It will increase direct tax revenues
(4) It will be beneficial to the metropolitan city-dwellers
(5) None of these

Correct Answer: (3) It will increase direct tax revenues

Solution:

It can be clearly inferred that in 2004-05 the government’s prime objective was to increase direct tax revenues.

42. Study the above information carefully and answer the questions.

What is the hidden meaning in the phrase, “It a is tremendous opportunity”?

(1) Direct taxation proposals
(2) Widening the tax net
(3) Amnesty scheme
(4) Budget 2004–05
(5) None of these

Correct Answer: (3) Amnesty scheme

Solution:

Most tax consultants opined that the amnesty scheme would draw an extremely favourable response.
“It is a tremendous opportunity.”

43. Study the above information carefully and answer the questions.

What change has been introduced in the budget for 2004–05?

(1) Companies have been exempted from paying 10 per cent tax on dividend.
(2) Abolition of taxation of dividend to the shareholders
(3) To support corporate sector in particular
(4) To impose double taxation on dividend income
(5) None of these

Correct Answer: (2) Abolition of taxation of dividend to the shareholders

Solution:

Another bold and much-sought-after change introduced in the budget is the abolition of taxation of dividend in the hands of the shareholder.

44. Study the above information carefully and answer the questions.

Why was amnesty scheme introduced in the budget?

(1) To abolish taxation of dividend
(2) To reduce budgetary support to public sector units
(3) To enhance income tax sources
(4) To induct black money into the mainstream economy
(5) None of these

Correct Answer: (4) To induct black money into the mainstream economy

Solution:

The amnesty scheme was introduced to harness black money.

45. Study the above information carefully and answer the questions.

What is the success of the bold direct taxation proposals will have a bearing upon?

(1) The attainment of the government’s direct taxation target
(2) Not widening the tax net
(3) Decreasing direct tax revenues
(4) Realization of the targeted fiscal deficit projection
(5) None of these

Correct Answer: (4) Realization of the targeted fiscal deficit projection

Solution:

The success of the bold direct taxation proposals will have a bearing upon realization of the targeted fiscal deficit projection.

46. Study the above information carefully and answer the questions.

Choose word which is most nearly the OPPOSITE in meaning to the following BOLD word as used in the passage.
Tremendous

(1) Excellent
(2) Superb
(3) Ordinary
(4) Immense
(5) Colossal

Correct Answer: (3) Ordinary

Solution:

Tremendous (Adjective) = very great in amount, scale, or intensity, huge, enormous, immense, impressive; excellent.
Ordinary (Adjective) = usual; normal; typical.

47. Study the above information carefully and answer the questions.

Choose the word which is most nearly the OPPOSITE in meaning to the following BOLD word as used in the passage.
Attainment

(1) Accomplishment
(2) Achievement
(3) Success
(4) Fall short of
(5) Acquirement

Correct Answer: (4) Fall short of

Solution:

Attainment (Noun) = achievement; success; acquirement; accomplishment.
Fall short = fail to meet an expectation or standard.

48. Study the above information carefully and answer the questions.

Choose the word which is most nearly the SAME in meaning to the following BOLD word as used in the passage:
Augment

(1) Decrease
(2) Lessen
(3) Enhance
(4) Diminish
(5) Reduce

Correct Answer: (3) Enhance

Solution:

Augment (Verb) = make (something) greater by adding to it; increase, make larger, make bigger.
Other words are near antonyms of augment.

49. Read the following passage carefully and answer the questions given below it.

From the questions (49-50)
The great Acharyas have said that having discovered a great goal, surrender yourself to that goal and act towards it drawing your inspiration from that goal whereby you will get a new column of energy. Do not allow this energy to be dissipated in the futile memories of past regrets or failures nor in the imagined sorrow of the future or the present and thus bring the entire energy focused into activity. That is the highest creative action in the world outside. Thereby the individual who is till now considered most inefficient finds his way to the highest achievement and success. This is said very easily in a second. But in order to train our mind to this attitude it needs considerable training because we have already trained the mind wrongly to such an extent that we have become perfect in imperfection.
Not knowing the art of action, we have been master artists in doing the wrong thing. The totality of activity will bring the country to a wrong end indeed. If each one is given a car, to achieve an ideal socialistic pattern, and nobody knows driving but everybody starts driving, what would be the condition on the road? Everybody has equal right on the public road. Then each car must necessarily dash against the other, and there is bound to be a jumble. This seems to be the very apt pattern of life that we are heading to. Every one of us is a vehicle. We know how to go forward. The point is that intellect is very powerful and everyone is driving but nobody seems to know how to control the mental energy and direct it properly or guide it to a proper destination.
Which of the following could lead to success?