JKSSB Accounts Assistant (Finance) - PFMS, IFMS & Taxation Practice Test MCQS 50

JKSSB Accounts Assistant (Finance) - PFMS, IFMS & Taxation Practice Test

Targeted 50 MCQ Practice Module focusing on: Public Financial Management System (PFMS), Indian/Integrated Financial Management System (IFMS), and Taxation - Direct & Indirect Tax Laws.

Select your answers and click Submit Assessment Answers at the bottom to calculate your total score and review explanations.

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SECTION I: Public Financial Management System (PFMS) - Basics [Questions 1 to 10]

1. What does PFMS stand for?

Public Fund Management Software Public Financial Management System Panchayat Finance Monitoring System Provident Fund Management Scheme

Explanation: PFMS is a web-based online software application designed to track fund flow to various government scheme implementing agencies.

2. PFMS was originally launched in 2009 under which name?

Direct Benefit Transfer Mission Central Plan Scheme Monitoring System (CPSMS) Integrated Finance Portal National Treasury Management System

Explanation: PFMS began as CPSMS in 2009 and was renamed PFMS in 2013-14 with expanded scope.

3. Which authority administers and operates PFMS at the central level?

Reserve Bank of India (RBI) Comptroller and Auditor General (CAG) Office of Controller General of Accounts (CGA), Department of Expenditure National Payments Corporation of India (NPCI)

Explanation: PFMS is administered by the Office of the Controller General of Accounts (CGA) under the Department of Expenditure, Ministry of Finance.

4. What is the primary objective of PFMS?

To collect income tax returns online To provide real-time, reliable, and meaningful information on fund utilisation under various government schemes To issue driving licenses digitally To maintain land revenue records

Explanation: PFMS aims to establish a real-time fund tracking and management system for government scheme expenditure.

5. PFMS is the primary technological backbone for which government payment mechanism?

Direct Benefit Transfer (DBT) Employee Provident Fund transfer Goods and Services Tax refund Passport issuance

Explanation: PFMS serves as the payment and reconciliation platform for DBT of subsidies, scholarships, wages, and pensions directly into beneficiary bank accounts.

6. PFMS was developed and is technically supported by which organisation?

Tata Consultancy Services (TCS) National Informatics Centre (NIC) Infosys Unique Identification Authority of India (UIDAI)

Explanation: NIC developed and provides technical backend support for the PFMS application.

7. PFMS establishes an electronic interface with which entities to enable fund transfer?

Only the Reserve Bank of India Core Banking Solution (CBS) of banks, including public sector, private, RRBs and cooperative banks Only foreign banks Insurance regulatory bodies

Explanation: PFMS is linked with the CBS of various banks to enable direct electronic transfer of funds to beneficiary/vendor accounts.

8. The "Just-in-Time" (JIT) release of funds under PFMS primarily aims to:

Increase idle float of funds with implementing agencies Release funds only when actually required for payment, minimizing parking of unspent balances Delay fund release until financial year-end Transfer funds in physical cash form

Explanation: JIT ensures funds are released to agencies only to the extent needed for immediate payment, reducing idle balances and interest loss to government.

9. PFMS mandates tracking of funds released under which categories of schemes?

Only State Plan Schemes Central Sector Schemes and Centrally Sponsored Schemes (CS & CSS) Only externally aided projects Only Panchayati Raj schemes

Explanation: PFMS was designed to track fund flow for Central Sector and Centrally Sponsored Schemes across all implementing agencies.

10. What is captured by PFMS at the most granular level?

Village-wise crop production Payment made to the individual/ultimate beneficiary level Only aggregate state totals Import-export statistics

Explanation: A key feature of PFMS is that it can track expenditure down to the last mile, i.e., the individual beneficiary payment.

SECTION II: PFMS - Features, Modules & DBT Architecture [Questions 11 to 20]

11. Under PFMS, before an implementing agency can receive funds, it must first complete:

GST Registration Agency Registration on the PFMS portal Passport verification Trademark registration

Explanation: Every implementing agency must register itself on PFMS and obtain a unique Agency code before funds can be tracked/released.

12. PFMS interfaces with which system to enable Aadhaar-linked Direct Benefit Transfers?

Aadhaar Payment Bridge System (APBS) of NPCI Passport Seva Kendra e-Way Bill Portal Sevottam Portal

Explanation: PFMS integrates with NPCI's Aadhaar Payment Bridge System to route Aadhaar-seeded DBT payments to beneficiaries.

13. The official web portal/domain of PFMS is:

pfms.gov.in pfms.nic.in pfms.rbi.in pfms.finmin.in

Explanation: PFMS operates through the official portal hosted at pfms.nic.in.

14. The "Expenditure, Advance and Transfer (EAT)" module of PFMS is primarily used by:

Private companies for internal audit State governments to track scheme-wise expenditure of state funds Foreign embassies Universities for exam result processing

Explanation: The EAT module allows State Governments to record and track expenditure incurred out of funds released for various schemes.

15. PFMS generates real-time MIS reports that primarily help in:

Weather forecasting Monitoring fund utilisation and detecting unspent balances with agencies Recruitment of government employees Land record digitisation

Explanation: PFMS dashboards and MIS reports allow monitoring authorities to track utilisation and unspent balances of released funds.

16. Under the Single Nodal Agency (SNA) model implemented through PFMS, State-share and Central-share funds for a scheme are:

Kept in two entirely separate un-tracked accounts Pooled into a single dedicated bank account monitored on PFMS for just-in-time release to implementing agencies Transferred directly to individual contractors without any tracking Converted into fixed deposits

Explanation: Under the SNA model, both Central and State shares of a Centrally Sponsored Scheme flow through one nodal bank account tracked on PFMS, enabling JIT release.

17. In the DBT fund flow architecture monitored by PFMS, the "Central Nodal Agency (CNA)" is responsible for:

Collecting income tax from beneficiaries Receiving central scheme funds and further disbursing them to State/District level implementing agencies Printing currency notes Auditing private companies

Explanation: The Central Nodal Agency receives funds released by the central Ministry/Department and transfers them onward through the PFMS-tracked chain.

18. PFMS played a crucial technological role in enabling Direct Benefit Transfer of wages under which flagship scheme?

Ayushman Bharat MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) Swachh Bharat Abhiyan Digital India

Explanation: PFMS-integrated payment tracking is central to the timely electronic payment of wages to MGNREGA job-card holders.

19. A unique feature of PFMS is the generation of a "Sanction ID", which refers to:

A vehicle registration number A unique identification number given to every sanction order issued for release of funds under a scheme A unique caste certificate number A property tax identification number

Explanation: Every sanction order for fund release is assigned a unique Sanction ID on PFMS to ensure traceability from sanction to final payment.

20. PFMS reconciles government payment data primarily with which entities for confirming credit into beneficiary accounts?

State Election Commission Banks (through Core Banking Solution) and RBI Municipal Corporation Employees' State Insurance Corporation

Explanation: PFMS reconciles transaction status by exchanging data electronically with banks' CBS and the Reserve Bank of India.

SECTION III: Integrated Financial Management System (IFMS) [Questions 21 to 30]

21. The Integrated Financial Management System (IFMS) primarily integrates which core government functions onto a single IT platform?

Only pension disbursement Budgeting, treasury operations and accounting functions of the government Only recruitment processes Only vehicle registration

Explanation: IFMS is designed to integrate budget preparation, treasury/bill processing, and accounting into one unified electronic system.

22. Under IFMS, electronic payments by government treasuries to beneficiaries/vendors are routed through which RBI platform?

e-Kuber NEFT Gateway of NPCI Real Time Gross Ledger (RTGL) Bharat Bill Payment System

Explanation: e-Kuber is RBI's Core Banking Solution through which State Treasuries under IFMS push e-payments (RTGS/NEFT) to beneficiary accounts.

23. Computerisation of Treasuries under IFMS chiefly replaced which older mode of government payment?

Digital wallet payments Manual, cheque-based disbursement of government payments Cryptocurrency payments Barter system

Explanation: Prior to IFMS, treasuries largely issued manual cheques; IFMS replaced this with direct electronic (e-payment) credit to accounts.

24. Real-time data available through IFMS chiefly helps the Finance Department monitor:

Only staff attendance Budget utilisation, receipts, expenditure and cash position of the government Court case pendency Weather patterns

Explanation: IFMS provides the Finance Department real-time visibility into budgetary allocation, utilisation, receipts and overall cash/fiscal position.

25. In the IFMS/Treasury workflow, "DDO" refers to:

District Development Officer Drawing and Disbursing Officer Deputy Director of Operations Direct Deposit Order

Explanation: A Drawing and Disbursing Officer (DDO) is the officer authorised to draw money from the treasury/consolidated fund and disburse it for approved expenditure.

26. Under IFMS, a bill submitted electronically by a DDO is first subjected to pre-check/verification at the:

Reserve Bank of India Treasury Office Election Commission Office Central Vigilance Commission

Explanation: Bills submitted by DDOs under IFMS are pre-audited/verified by the Treasury before payment authorisation.

27. A major benefit of IFMS is that it minimizes:

Government tax collection Delay and float of funds between sanction and actual payment to the beneficiary Number of government schemes Population census errors

Explanation: By digitising the entire chain from budget to payment, IFMS substantially reduces the time-lag (float) between fund release and disbursement.

28. Implementation and administration of a State/UT's IFMS (e.g., J&K IFMS) primarily falls under the domain of the:

Finance Department of the State/UT Ministry of External Affairs Election Commission of India State Public Service Commission

Explanation: The Finance Department of the respective State/UT is the nodal authority responsible for administering the IFMS/treasury computerisation project.

29. IFMS assists the government in effective cash management primarily by providing:

Real-time visibility of cash balances and scheme-wise expenditure across treasuries Historical census data only Only agricultural output data Only foreign exchange reserve data

Explanation: Real-time consolidated data from all treasuries under IFMS enables the Finance Department to plan borrowings and manage cash efficiently.

30. The module of IFMS that processes government employees' pay bills and generates monthly salary payments electronically is generally called:

e-Salary / Pay and Accounts module e-Way Bill module GST Return module Land Records module

Explanation: The e-Salary or Pay & Accounts module of IFMS enables DDOs to process and disburse employees' monthly salaries electronically.

SECTION IV: Taxation - Direct Tax Laws [Questions 31 to 40]

31. A "Direct Tax" is one where:

The burden can be freely shifted to another person The liability to pay and the burden of the tax fall on the same person It is levied only on goods and services It is collected only by local municipal bodies

Explanation: In a direct tax, the person who is legally liable to pay the tax also bears its final burden, e.g., Income Tax.

32. Income Tax in India is primarily governed by which legislation?

The Companies Act, 2013 The Income Tax Act, 1961 The Indian Contract Act, 1872 The Central Goods and Services Tax Act, 2017

Explanation: The Income Tax Act, 1961 (along with annual Finance Acts) forms the primary law governing levy and collection of income tax in India.

33. The apex body responsible for administration of direct taxes in India is the:

Central Board of Indirect Taxes and Customs (CBIC) Central Board of Direct Taxes (CBDT) Reserve Bank of India (RBI) Securities and Exchange Board of India (SEBI)

Explanation: CBDT, functioning under the Department of Revenue, Ministry of Finance, is the statutory authority administering direct tax laws in India.

34. "Assessment Year" as used in Income Tax law refers to:

The year in which income is actually earned The year immediately following the previous (financial) year, in which income of that previous year is assessed and taxed Any year chosen by the assessee at will The last year of a company's incorporation

Explanation: Income earned in a Previous Year (Financial Year) is assessed to tax in the succeeding Assessment Year.

35. TDS stands for:

Total Deposit Scheme Tax Deducted at Source Treasury Deposit Statement Tax Deferred Savings

Explanation: TDS is a mechanism where a specified percentage of tax is deducted by the payer at the time of making certain payments and deposited with the government.

36. TDS on salary income paid to employees is governed by which section of the Income Tax Act, 1961?

Section 80C Section 192 Section 44AD Section 10(10D)

Explanation: Section 192 of the Income Tax Act, 1961 mandates deduction of tax at source by the employer on salary payments.

37. PAN, mandatory for most financial transactions and tax filings in India, stands for:

Personal Account Number Permanent Account Number Provident Account Number Public Assessment Number

Explanation: PAN (Permanent Account Number) is a unique 10-character alphanumeric identifier issued by the Income Tax Department.

38. For listed equity shares, gains are treated as "Long-Term Capital Gains" if the shares are held for more than:

36 months 12 months 24 months 6 months

Explanation: Listed equity shares/equity-oriented mutual funds held for more than 12 months qualify as long-term capital assets.

39. Income from a self-occupied or let-out house property is computed under which sections of the Income Tax Act, 1961?

Sections 15-17 Sections 22-27 Sections 80C-80U Sections 139-140

Explanation: "Income from House Property" is computed as per the provisions laid down in Sections 22 to 27 of the Income Tax Act, 1961.

40. Corporate/Company income tax is an example of a direct tax because:

It is ultimately paid by the customer through higher prices The liability to pay and the incidence of tax rest on the company itself It is only an indirect levy on turnover It is refunded automatically every year

Explanation: Corporate tax is levied on and paid directly by the company on its profits, making it a direct tax.

SECTION V: Taxation - Indirect Tax Laws [Questions 41 to 50]

41. An "Indirect Tax" is one where:

The person paying the tax to the government and the person ultimately bearing its burden are different, as the burden can be shifted Only individuals below the poverty line are liable to pay The tax is levied solely on agricultural income It can never be passed on to the consumer

Explanation: In an indirect tax like GST, the supplier collects and deposits the tax, but its economic burden is passed on to the ultimate consumer.

42. The Goods and Services Tax (GST) was implemented across India with effect from:

1st April 2016 1st July 2017 1st January 2018 1st July 2019

Explanation: GST was rolled out nationwide with effect from 1st July 2017, replacing multiple indirect taxes.

43. GST subsumed which of the following pre-existing indirect taxes?

Income Tax and Wealth Tax Central Excise Duty, Service Tax and State VAT, among others Customs Duty only Stamp Duty only

Explanation: GST replaced a host of central and state indirect taxes, including Central Excise, Service Tax and State VAT.

44. The GST Council, which recommends GST rates and policy, is chaired by the:

Governor of RBI Union Finance Minister Chief Justice of India Comptroller and Auditor General

Explanation: The GST Council is chaired by the Union Finance Minister, with State Finance Ministers as members.

45. Integrated Goods and Services Tax (IGST) is levied on:

Intra-state supply of goods and services only Inter-state supply of goods and services and imports into India Only agricultural produce Only government salaries

Explanation: IGST is levied by the Central Government on inter-state supplies of goods/services and on imports, and is later apportioned between Centre and States.

46. Under GST law, a supplier is generally required to obtain registration once aggregate turnover in a financial year exceeds the prescribed threshold limit, which is primarily intended to:

Bring larger taxpayers into the formal tax net while easing the compliance burden on small suppliers Exempt all suppliers from tax permanently Apply only to importers Apply only to government departments

Explanation: GST prescribes turnover-based registration thresholds so that businesses above a certain size are brought into the formal indirect tax net, easing compliance burden on very small suppliers.

47. Administration of Customs Duty and other indirect taxes on international trade in India rests with the:

Central Board of Direct Taxes (CBDT) Central Board of Indirect Taxes and Customs (CBIC) Reserve Bank of India (RBI) Directorate General of Foreign Trade only

Explanation: CBIC, under the Department of Revenue, administers Customs, Central Excise, GST and Narcotics-related indirect tax matters.

48. Levy and collection of Customs Duty in India is governed primarily by the:

Customs Act, 1962 Indian Penal Code, 1860 Companies Act, 2013 Negotiable Instruments Act, 1881

Explanation: The Customs Act, 1962, along with the Customs Tariff Act, 1975, governs the levy and administration of customs duty in India.

49. The GST Identification Number (GSTIN) allotted to every registered taxpayer consists of how many characters?

10 12 15 20

Explanation: GSTIN is a 15-character alphanumeric code, structured to include the State code, PAN of the taxpayer and other identifiers.

50. The "Reverse Charge Mechanism (RCM)" under GST refers to a situation where:

The supplier pays tax twice for the same supply The liability to pay GST shifts from the supplier to the recipient of goods or services No GST is payable on the transaction Only the government pays GST on behalf of both parties

Explanation: Under Reverse Charge Mechanism, the recipient of goods/services, rather than the supplier, becomes liable to pay GST directly to the government in specified cases.

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