Home › CS Executive › taxlaws › Direct Taxes — At a Glance › The Direct-Tax GDP Ratio table in the lesson rep…
The Direct-Tax GDP Ratio table in the lesson reports a "Buoyancy Factor" for each financial year. What does a Buoyancy Factor reading greater than 1 in a year indicate about direct tax collections relative to GDP that year?
Answer & Solution
Correct answer: B.
1. The Buoyancy Factor in the table is the ratio of direct tax growth rate to GDP growth rate.
2. A reading above 1 means tax growth outpaced GDP growth that year.
3. Such a system is described as tax-buoyant.
4. A reading below 1 would indicate the opposite, not absolute decline of collections or cost movements.
_Source: ICSI CS Executive Paper 4 (Tax Laws) — Lesson 1: Direct Taxes — At a Glance, pp. 10-22._
Related questions
The Income Tax Department is described as functioning within a specific arm of the GovernmThe Central Board of Indirect Taxes and Customs sits alongside the CBDT under the DepartmeArticle 246 of the Constitution serves a specific structural role in the Indian tax framewThe lesson provides a vital-statistics table showing the share of direct taxes as a percenThe lesson outlines a broad mandate for the Income Tax Department covering domestic and inThe lesson states that the CBDT is also India's official designated unit for a specific inThe Income Tax Act, 1961 replaced an earlier statute that had been in force for a long strSchedule VII to the Constitution distinguishes between the Union, State and Concurrent Lis