Direction (1-10): In each question below a sentence is given with two blanks in each. Each question is followed by four options with two words in each. You have to select that option as your answer which can fill both the blanks of the sentence.
- The move by the Centre to bring back Long Term Capital Gains tax on equity shares and equity-oriented mutual funds is a _________________ in the right direction as it reduces the _________________ that currently exists in the tax treatment of equity and other investment classes such as debt.
step, disparityshuffle, dissimilaritymile, diversitywaddle, inconsistencyAll are CorrectOption A
- The Budget has three key sets of proposals which are promising for debt markets. One, by biting the bullet on a 10 per cent tax on long-term capital gains from equities and granting senior citizens tax-free status on interest income up to ₹50,000 a year, the Centre has signalled its _________________ to level the uneven playing field between equity and debt investments. The substantial tax break may ___________________ the flow of retail savings into bank deposits, aiding credit growth.
resolute, jadeobjective, shatterpurpose, blightintent, restoreAll are CorrectOption D
- Profits made until the end of January, on shares or equity mutual funds that have been held for more than one year, will not be taxed. While this ___________________ retrospective taxation, this relaxation could ________________ the stock market in the immediate future. Stock prices surging ceaselessly over the last few months, coupled with weak earnings growth, have made valuations very pricey.
fends, conciliatediverts, placateaverts, roilskips, bewitchAll are CorrectOption C
- India’s tax policy on household savings has traditionally __________________ on the received wisdom that equities are the ideal vehicle to funnel capital into productive _________________ of the economy. Thus, liberal tax breaks were extended to shares and equity mutual funds, while fixed income instruments suffered from benign neglect.
believed, chunksrelied, segmentsreckoned, sharesaverred, splitsAll are CorrectOption E
- The finance minister could have ___________________ this situation by making the new tax on long term gains applicable from February 1, 2018. This could have averted selling pressure in the next two months, before the new rules are __________________ . The finance minister should also consider allowing indexation of cost of shares and equity-oriented mutual funds for calculating long-term gains, in line with other assets.
averted, implementeddeterred, exemptedeluded, neglectedshirked, shelvedAll are CorrectOption A
- The way out is to _________________ industry through setting up industrial zones which will reduce the logistics costs. Investment in physical and social infrastructure is a better bet than protectionism. India’s recent move seems to be an effort to cash in on the protectionist climate the world over. Such a ___________________ has its limits.
obstruct, strategydegrade, strategychasten, strategypromote, strategyAll are CorrectOption D
- A remarkable feature of this budget is that it bucks the __________________ by actually raising customs duty across a ________________ of essentially labour-intensive sectors. This marks an effort to address the crisis over jobs lost due to FTA-related imports over time, and more recently due to the glitches on the GST front.
course, excogitatefashion, sprinkletrend, slewinclination, elongateAll are CorrectOption C
- The _________________ case of leather exports points to a bigger problem — of the Government’s rather muddled approach to trade policy. For instance, the ___________________ of higher duties on electronics goods, including phones, goes against the WTO’s Information Technology Agreement 1996, which mandates zero tariffs on electronics goods. India may well be dragged to WTO over the recent tariff increases.
peculiar, candorbizarre, absolvecurious, impositionqueer, abdicateAll are CorrectOption C
- It is well known that a ________________ of cheap ‘Chinese’ goods have taken a toll on India’s small industries, be it toys, mobiles, stationery, capital goods and electronics items. A category of increases in tariffs can be _______________ to the Chinese threat.
deluge, relievedflood, ascribedsurge, confidentialgush, officiousAll are CorrectOption B
- Three consecutive days of decline in the stock market may have _________________ investors, but this is par for the course. It’s just that the strong run by Indian equity in 2017 with the benchmark Sensex gaining 28 per cent, followed by a stellar pre-budget rally in January 2018, appears to have lulled investors into a sense of __________________ .
rattled, complacencyflustered, anxietyagitated, modestyperturbed, austerityAll are CorrectOption A