CAPF

COMPREHENSION 2
Year 2016
 Read the following passage and answer the questions that
follow: (4x5=20)

(i) How is the circulation of black money detrimental for private

entrepreneurs?
(ii) Why isn't reduction of taxes useful for sprucing up taxes ?
(iii) How do honest tax-payers suffer on account of tax evaders ?
(iv) How does black income impact a nation's economy?
(v) Large scale evasion of taxes takes place due to exorbitant taxes.'
Argue for or against the statement on the basis of your reading of
the passage.
It is an obvious trait of black incomes that they cannot be declared to the fiscal
authority for fear of large penalties. As under-declarations multiply, the tax base
shrinks and price controls begin to blunt the edge of fiscal policy. One instrument
of control gets into the way of the other and makes it ineffective. Tax evasion is
large not necessarily because the rate of tax is high, as businessmen often
proclaim, but because the income on which tax is to be paid, and the activity from
which income is received, cannot be declared. It follows that even if taxes were
halved, so long as the income is black, taxes will be evaded. However, to the
extent taxation fails to catch undeclared incomes come emanating from controls, it
becomes a bad instrument for balancing aggregate demand and supply and for
controlling inflation. In an enthusiastic attempt to make taxation do the balancing
trick, tax rates on honest tax-payers become penal. This leads to a second round of
tax evasion, this time because tax rates are intolerably high. More and more tax-
payers at the margin avoid tax payment, become dishonest and in the course of
time get used to dishonesty. While black money does so much damage to public
policy, it also dries up the sources of real growth in the private sector of the
economy. The capital market, the main vehicle of growth, consequently dries up,
and capital formation both in the public and private sectors suffers a serious
decline.

1. How is the circulation of black money detrimental for

private entrepreneurs?
Ans : Income generated from illegal activities leads to formation
of black money that leads to tax evasion, and tax load moves
honest tax payers, as tax rates go tax evasion by honest tax
payers continues, which leads to credit contraction in market
and consequently hampers the growth of Capital formation in
private sector harms private entrepreneurs.

2. Why isn’t reduction of taxes useful for sprucing up taxes?

Ans: As reduction of tax rates may help to reduce tax evasion if
that income on which tax implies is genuine, the activity from
which income received cannot be declared. Then it does not
respond to change in tax rate.
3. How do honest tax-payers suffer on account of tax
evaders?
Ans : As of tax evaders avoid taxes the fiscal tools to manage
supply and demand come in place and as tax base is reducing to
manage demand and supply tax rate increased and for that
honest tax payers suffers due to Inflation caused imbalance
between demand supply mainly due to tax evaders.
4. How does black income impact a nation’s economy?
Ans : Black Income is income generated from illegal activities
which cannot be declared so that fund never comes in
mainstream economy. So causes reduction in supply of money
in mainstream market but when the same money entered in to
economy as black money which leads to inflation and hampers
capital formation in national economy.
5. Large scale evasion of taxes takes place due to exorbitant
taxes. Argue for or against the statement on the basis of your
reading of the passage.
Ans : When tax rate become penal to the honest tax payers they
start avoiding taxes and those on margin become dishonest. Tax
evasion is large not because of penal tax rate but because of the
income on which tax to be paid and the activity on which
income is received are illegal and cannot be declared.
 Year 2017
Read the following passage and
answer the questions that follow :
(4x5=20)
 Questions:
(i) What hurdled the progress of India ?
(ii) What is the uniqueness of the Indian vitality ?
(iii) Why are the men of the sword and their work forgotten?
(iv) Why are the conquests of India always remembered ?
(v) What is the vital question referred to at the end of the passage
and what is your answer to that question ?
If we look back at India's long history, we find that our forefathers made wonderful
progress whenever they looked out on the world with clear and fearless eyes and kept
the windows of their minds open to give and to receive. And, in later periods, when
they grew narrow in outlook and shrank from outside influences, India suffered a set-
back, politically and culturally. What a magnificent inheritance we have, though we
have abused it often enough. India has been and is a vital nation, in spite of all the
misery and suffering that she has experienced. That vitality in the realm of constructive
and creative effort spread to many parts of the Asian world and elsewhere and brought
splendid conquests in its train. Those conquests were not so much of the sword, but of
the mind and heart which bring healing and which endure when the men of the sword
and their work are forgotten. But that very vitality, if not rightly and creatively
directed, may turn inward and destroy and degrade. Even during the brief span of our
lives we have seen these two forces at play in India and the world at large — the forces
of constructive and creative effort and the forces of destruction.
Which will triumph in the end? And on which side do we stand? That is a vital question
for each one of us and, more especially, for those from whom the leaders of the nation
will be drawn, and on whom the burden of tomorrow will fall. We dare not sit on the
fence and refuse to face the issue. We dare not allow our minds to be befuddled by
passion and hatred when clear thought and effective action are necessary.

Answers:
1. What hurdled the progress of India?
Ans: The narrow outlook detachment with outside thoughts
and closure of minds to give and receive had created
obstacles for political & cultural progress of India. On other
hand. Sometimes, lack of right & creative directions to
outside influences fed to degradation and obstruction to
progress of India.
2. What is the uniqueness of the Indian vitality?
Ans: Although there is experience of misery & suffering,
open minds of our forefathers to give & receive from outside
had created magnificent inheritance for India. The
inheritance effects the constructive & creative outlook of our
history and recreantly uniqueness of Indian vitality.
3. Why are the men of the sword and their work
forgotten?
Ans: The force of constructive & creative effort of mind &
forces of mind & heart from outside had in conflict and with
forces of sword. This has resulted into forgotten work of
sword while forces of mind & hear remained into existence.
 4. Why are the conquests of India always remembered?
Ans: The conquests of India are mostly of hearts and mind,
which were healing oriented hence they are remembered when
other military conquests were forgotten.
 5. What is the vital question referred to at the end of the
passage and what is your answer to that question?
Ans: The vital question is related to victory among two
forces one of constructive while other is destructive.
Simultaneously question of which side, India & world at
range stands has been asked India & world of large should
stand by the constructive forces creates our lives & history
magnificent & read as to progress.

YEAR 2018
Read the following passage and
answer the questions that follow:
(4x5=20)
 Questions:
(i) What are the essential functions of universities?
(ii) What is the major drawback in our educational institutions?
(iii) Write the benefits of education imparted at universities.
(iv) How best can the educated youth serve the people and the
nation as administrators?
(v) What is the contribution of the educated youth as enlightened
citizens in a democracy?
The most essential and useful part to be played by our universities in free India is to
educate public opinion, which is the foundation of Democracy. Everyone has a right to
educate public opinion, and so every school of thought, in our own Republican
Constitution, has been given ample freedom to win public opinion, to its credit. It is here
that true character is required and is tested. Our country, today, needs, such people who
possess a strong character, who never stoop low to use questionable means under any
circumstances. Those who cherish the idea of becoming good administrators must
essentially possess a strong character. It should be the first and foremost function of our
national universities to impress upon the minds of the future administrators of our country
that in a true democracy there are no administrators but only servants of the people.
Another very essential and useful function of our universities should be to build the
character of our future citizens. The greatest drawback in our educational institutions has
been that sufficient attention was not paid to the molding of character of the students. True
interest of a country and its people cannot be served simply by framing a Constitution.
Constitution is just a set of rules and it can only be effective when persons responsible for
its operation prove to be true reformers and real servants of the people and the nation.
Universities have to play a vital role. They should not teach politics to the students simply
 with the view to make them acquainted with the political structure of the country as well as
of the world; but that it should be their function to impress upon them that they are to
protect, guide, change, and form the Constitution of their country and then of the world as
true citizens and administrators of this democratic age, in body as well as spirit.

Questions:
(i) What are the essential functions of universities?
(ii) What is the major drawback in our educational institutions?
(iii) Write the benefits of education imparted at universities.
(iv) How best can the educated youth serve the people and the
nation as administrators?
(v) What is the contribution of the educated youth as enlightened
citizens in a democracy?
 Answers:
1. What are the essential functions of
universities?
Ans: To build a strong character of our future
citizens is essential function of universities. For
that administrators should realize that they are
 not administrators only, but servants of our
country.

2. What is the major drawback in our

educational institutions?
Ans: Lack of sufficient affection to building a
character of student in our educational
institutions is the major drawback of our
 educational institutions building of a character
is and essential in case of administrators &
future citizen or students.

3. Write the benefits of education imparted

at universities
Ans: Education at universities to educate public
opinion, which is the foundation of Democracy.
 Our Universities building strong character of
future citizens. Who became good
administrators and servant of society in body as
well as spirit?

4. What is the contribution of the educated

youth as enlightened citizens in a
democracy?
 Ans: Educated youth can contribute to as
enlightened citizen being true reformers & real
servant of people & by protecting &
implementing constitution of their country
effectively. This will lead to penetrate demotic
spirit throughout world.

5. How best can the educated youth serve the

people and the nation as administrators?
 Ans: Educated youth as an administrator can
serve the people & country by building a strong
character as servant of people. Such character
was appropriate mean irrespective of
circumstances.

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