Preparing for Banking, SSC, RBI, NABARD, and other competitive exams requires a strong grasp of the Union Budget 2026–27, as budget-based questions are frequently asked in both prelims and mains. This year’s budget is especially important because it focuses on Viksit Bharat goals, manufacturing expansion, MSME growth, infrastructure push, financial sector reforms, social sector development, and fiscal consolidation. The most important MCQs from this budget help aspirants quickly revise key schemes, allocations, targets, reforms, and economic indicators that are highly exam-relevant. Practicing these questions will strengthen your understanding of current economic policies and improve your ability to tackle government scheme and budget-based questions with accuracy.
Union Budget 2026-27: Top Most Important MCQ’s
PART A: INDIA’S BUDGET 2026-27
Q1. The three pillars of the Kartavya Framework do NOT include which of the following?
A) Accelerate Sustainable Economic Growth
B) Strengthen Agricultural Subsidy Distribution
C) Fulfill Aspirations & Build Capacity
D) Inclusive Development (Sabka Sath, Sabka Vikas)
Answer: B
Q2. Which of the following best describes the “Kartavya 1” pillar?
A) Direct wealth redistribution to marginalized communities
B) Enhance productivity and competitiveness while maintaining structural reforms momentum
C) Elimination of all foreign trade barriers
D) Mandatory government employment for all citizens
Answer: B
Q3. According to the budget, how many individuals have been lifted out of multidimensional poverty as of the document date?
A) 15 crore
B) 20 crore
C) 25 crore
D) 30 crore
Answer: C
Q4. The Reform Express initiative includes how many rollouts post-Independence Day 2025?
A) 200+
B) 250+
C) 350+
D) 400+
Answer: C
Q5. Which THREE areas are identified as Supporting Ecosystem Requirements for growth?
A) Agricultural subsidies, Price controls, Bureaucratic oversight
B) Continuous structural economic reforms, Robust financial sector, Cutting-edge technologies
C) Tariff barriers, Limited FDI, Government monopolies
D) None of the above
Answer: B
Q6. The Biopharma SHAKTI scheme has an outlay of ₹10,000 crore over how many years?
A) 3 years
B) 5 years
C) 7 years
D) 10 years
Answer: B
Q7. How many new NIPER (National Institutes of Pharmaceutical Education & Research) institutions will be established under Biopharma SHAKTI?
A) 2
B) 3
C) 5
D) 7
Answer: B
Q8. The clinical trial network target under Biopharma SHAKTI is:
A) 500+ accredited sites
B) 750+ accredited sites
C) 1,000+ accredited sites
D) 1,500+ accredited sites
Answer: C
Q9. Which of the following is NOT a focus area of India Semiconductor Mission 2.0?
A) Manufacture semiconductor equipment domestically
B) Design full-stack Indian intellectual property solutions
C) Establish retail semiconductor outlets across India
D) Develop skilled workforce in semiconductor technology
Answer: C
Q10. The Electronics Components Manufacturing Scheme previous outlay was ₹22,919 crore (launched April 2025). The proposed enhancement is:
A) ₹30,000 crore
B) ₹35,000 crore
C) ₹40,000 crore
D) ₹45,000 crore
Answer: C
Q11. What was the investment achievement ratio against target for Electronics Components Manufacturing Scheme?
A) 1.5x
B) 2x
C) 2.5x
D) 3x
Answer: B
Q12. The Rare Earth Permanent Magnets Scheme was launched in:
A) August 2025
B) September 2025
C) November 2025
D) December 2025
Answer: C
Q13. Which of the following states is NOT mentioned as a mineral-rich state in the Rare Earth Corridors initiative?
A) Odisha
B) Kerala
C) Maharashtra
D) Andhra Pradesh
Answer: C
Q14. The Container Manufacturing Scheme has an outlay of ₹10,000 crore over:
A) 3 years
B) 5 years
C) 7 years
D) 10 years
Answer: B
Q15. How many sub-components does the Textile Sector Integrated Programme have?
A) 3
B) 4
C) 5
D) 6
Answer: C
Q16. The National Fibre Scheme aims to achieve self-reliance in which of the following?
A) Only synthetic fibres
B) Only natural fibres (silk, wool, jute)
C) Both natural and man-made fibres including new-age fibres
D) Only cotton and polyester
Answer: C
Q17. Which textile scheme specifically focuses on skilling modernization with industry-academic collaboration?
A) Textile Expansion & Employment Scheme
B) Samarth 2.0
C) Tex-Eco Initiative
D) National Handloom & Handicraft Programme
Answer: B
Q18. The Hi-Tech Tool Rooms under Capital Goods Capability Building will be established at:
A) 1 location
B) 2 locations
C) 3 locations
D) 5 locations
Answer: B
Q19. Which construction-related equipment is specifically mentioned in the Construction & Infrastructure Equipment Scheme?
A) Concrete mixers only
B) Lifts, fire-fighting equipment, tunnel-boring equipment, high-altitude road machinery
C) Only excavators
D) Only cranes
Answer: B
Q20. How many legacy industrial clusters are targeted for rejuvenation under the cluster revitalization scheme?
A) 100
B) 150
C) 200
D) 250
Answer: C
Q21. The SME Growth Fund has an outlay of:
A) ₹5,000 crore
B) ₹8,000 crore
C) ₹10,000 crore
D) ₹15,000 crore
Answer: C
Q22. The Self-Reliant India Fund Top-Up allocation is:
A) ₹1,000 crore
B) ₹1,500 crore
C) ₹2,000 crore
D) ₹3,000 crore
Answer: C
Q23. The current TReDS (Trade Receivables e-Discounting System) availability to MSMEs is:
A) ₹5 lakh crore
B) ₹7 lakh crore
C) ₹9 lakh crore
D) ₹10 lakh crore
Answer: B
Q24. Which of the following is NOT listed as a measure to leverage TReDS potential?
A) Mandatory CPSE Integration
B) Credit Guarantee Mechanism
C) Direct government grants to MSMEs
D) GeM-TReDS Linkage
Answer: C
Q25. The GeM-TReDS linkage aims to achieve which of the following?
A) Better financing visibility and cheaper, quicker credit only
B) Eliminate traditional banking completely
C) Reduce government procurement transparency
D) Increase MSME interest rates
Answer: A
Q26. The TReDS receivables asset-backed securities initiative falls under which category of support?
A) Equity Support
B) Liquidity Support
C) Professional Support
D) Technology Support
Answer: B
Q27. The Corporate Mitras Programme facilitates short-term, modular courses through:
A) Private corporations only
B) Government training institutes
C) Professional Institutions (ICAI, ICSI, ICMAI)
D) Foreign universities
Answer: C
Q28. The Corporate Mitras Programme specifically targets:
A) Only metropolitan areas
B) Tier-I cities exclusively
C) Tier-II and Tier-III towns
D) Rural areas only
Answer: C
Q29. What benefit does the Corporate Mitras Programme provide to MSMEs?
A) Direct equity investment
B) Affordable compliance support through accredited para-professional cadre
C) Government subsidies
D) Forced technology adoption
Answer: B
Q30. The public capital expenditure in FY2014-15 was ₹2 lakh crore. What is the proposed allocation for FY2026-27?
A) ₹10 lakh crore
B) ₹11.2 lakh crore
C) ₹12.2 lakh crore
D) ₹13.2 lakh crore
Answer: C
Q31. The Infrastructure Risk Guarantee Fund provides:
A) Full credit guarantees to all borrowers
B) Prudently calibrated partial credit guarantees to lenders
C) Direct grants to infrastructure developers
D) Mandatory equity stakes
Answer: B
Q32. The new Dedicated Freight Corridor connects:
A) Delhi to Mumbai
B) Dankuni (East) to Surat (West)
C) Chennai to Bengaluru
D) Kolkata to Hyderabad
Answer: B
Q33. How many new National Waterways are planned to be operationalized over 5 years?
A) 10
B) 15
C) 20
D) 25
Answer: C
Q34. National Waterway-5 in Odisha connects which industrial areas to ports?
A) Raipur-Angul to Visakhapatnam
B) Talcher-Angul to Paradeep/Dhamra ports
C) Jharia to Haldia
D) Singareni to Kakinada
Answer: B
Q35. The Coastal Cargo Promotion Scheme targets increasing the share of inland waterways and coastal shipping from 6% to:
A) 8% by 2047
B) 10% by 2047
C) 12% by 2047
D) 15% by 2047
Answer: C
Q36. Ship Repair Ecosystems will be established at:
A) Mumbai and Kochi only
B) Chennai and Visakhapatnam
C) Varanasi and Patna
D) Surat and Mandvi
Answer: C
Q37. How many High-Speed Rail Corridors are proposed?
A) 5
B) 6
C) 7
D) 8
Answer: C
Q38. Which of the following is NOT among the proposed High-Speed Rail Corridors?
A) Mumbai-Pune
B) Pune-Hyderabad
C) Delhi-Kolkata
D) Chennai-Bengaluru
Answer: C
Q39. The seaplane initiatives primarily aim to:
A) Replace commercial aviation entirely
B) Provide remote connectivity and tourism promotion
C) Eliminate helicopter services
D) Create luxury travel only
Answer: B
Q40. The CCUS (Carbon Capture, Utilization & Storage) Roadmap was launched in:
A) October 2025
B) November 2025
C) December 2025
D) January 2026
Answer: C
Q41. The CCUS initiative outlay is ₹20,000 crore over:
A) 3 years
B) 5 years
C) 7 years
D) 10 years
Answer: B
Q42. Which sector is NOT mentioned as a focus sector for CCUS technologies?
A) Power
B) Steel
C) Retail
D) Cement
Answer: C
Q43. City Economic Regions (CERs) focus primarily on:
A) Rural agricultural development
B) Tier-II, Tier-III cities, and temple towns
C) Metropolitan expansion only
D) Industrial manufacturing clusters
Answer: B
Q44. The allocation per City Economic Region over 5 years is:
A) ₹3,000 crore
B) ₹4,000 crore
C) ₹5,000 crore
D) ₹6,000 crore
Answer: C
Q45. The financing model for CERs is:
A) Direct grant disbursement
B) Challenge mode with reform-cum-results-based mechanism
C) Zero-interest loans only
D) Private sector-only funding
Answer: B
Q46. Which government initiative aims to drive technology adoption for farmers, women in STEM, and persons with disabilities?
A) Manufacturing Excellence Mission
B) Digital India Programme
C) AI Mission, National Quantum Mission, Anusandhan National Research Fund, and R&D Innovation Fund
D) Make in India
Answer: C
Q47. Current banking sector coverage of villages in India is:
A) 85%
B) 90%
C) 95%
D) 98%+
Answer: D
Q48. A High-Level Committee on Banking for Viksit Bharat has been constituted with mandate to review banking while safeguarding:
A) Only profitability
B) Only financial stability
C) Financial stability, inclusion objectives, and consumer protection
D) Regulatory compliance only
Answer: C
Q49. Which of the following is a proposed NBFC restructuring initiative?
A) Privatize all public sector NBFCs
B) Restructure Power Finance Corporation and Rural Electrification Corporation
C) Eliminate NBFC sector
D) Merge all NBFCs with banks
Answer: B
Q50. The Foreign Exchange Management (Non-debt Instruments) Rules initiative aims to:
A) Restrict foreign investment
B) Create contemporary, user-friendly rules aligned with India’s evolving priorities
C) Eliminate foreign direct investment
D) Increase bureaucratic controls
Answer: B
Q51. The corporate bond market development includes introduction of market making for:
A) Government securities only
B) Corporate bond indices
C) Only blue-chip company bonds
D) Small cap bonds exclusively
Answer: B
Q52. The Municipal Bonds Incentive Scheme provides an incentive of ₹100 crore for single bond issuance greater than:
A) ₹500 crore
B) ₹750 crore
C) ₹1,000 crore
D) ₹1,500 crore
Answer: C
Q53. The AMRUT scheme continues supporting bond issuances up to:
A) ₹100 crore
B) ₹150 crore
C) ₹200 crore
D) ₹250 crore
Answer: C
Q54. Portfolio Investment Scheme (PIS) liberalization includes permitting PROI to invest in:
A) Government securities only
B) Listed company equity
C) Real estate only
D) Unlisted companies
Answer: B
Q55. The individual PROI limit has been increased from 5% to:
A) 7%
B) 8%
C) 10%
D) 12%
Answer: C
Q56. The overall PROI limit has been raised from 10% to:
A) 15%
B) 18%
C) 24%
D) 28%
Answer: C
Q57. The High-Powered ‘Education to Employment and Enterprise’ Standing Committee targets achieving what percentage of global services share by 2047?
A) 5%
B) 8%
C) 10%
D) 15%
Answer: C
Q58. How many Allied Health Professionals (AHPs) are targeted to be added over 5 years?
A) 50,000
B) 75,000
C) 100,000
D) 150,000
Answer: C
Q59. Year 1 target for training caregivers under AHP Care Ecosystem Development is:
A) 50,000
B) 75,000
C) 1 lakh (100,000)
D) 1.5 lakh (150,000)
Answer: D
Q60. How many Regional Medical Value Tourism Hubs are planned to be supported?
A) 3
B) 4
C) 5
D) 7
Answer: C
Q61. Medical Value Tourism Hubs will integrate which system’s centres?
A) Only Allopathic
B) Only Homeopathic
C) AYUSH Centres
D) Only Unani
Answer: C
Q62. The WHO Global Traditional Medicine Centre that will be upgraded is located in:
A) Delhi
B) Mumbai
C) Jamnagar
D) Varanasi
Answer: C
Q63. How many new All India Institutes of Ayurveda will be established?
A) 1
B) 2
C) 3
D) 5
Answer: C
Q64. The Orange Economy sector (AVGC) requires how many professionals by 2030?
A) 1 million
B) 1.5 million
C) 2 million
D) 2.5 million
Answer: C
Q65. AVGC Content Creator Labs will be established in how many secondary schools?
A) 5,000
B) 10,000
C) 15,000
D) 20,000
Answer: C
Q66. AVGC Content Creator Labs will be established in how many colleges?
A) 200
B) 300
C) 400
D) 500
Answer: D
Q67. The new National Institute of Design will focus on:
A) Western India only
B) Southern India
C) Eastern India (to address geographic concentration)
D) Northern India
Answer: C
Q68. How many University Townships are planned via challenge route?
A) 2
B) 3
C) 4
D) 5
Answer: D
Q69. University Townships will be located near:
A) Agricultural areas only
B) Major industrial and logistic corridors
C) Coastal regions only
D) Hilly regions
Answer: B
Q70. The girls’ hostel in higher STEM education initiative targets establishing:
A) 1 hostel per state
B) 1 hostel per district
C) 1 hostel per region
D) 1 hostel per university
Answer: B
Q71. How many telescope infrastructure projects are included in Astrophysics & Astronomy Development?
A) 2
B) 3
C) 4
D) 5
Answer: C
Q72. The National Institute of Hospitality upgrades which existing institution?
A) IIHM
B) National Council for Hotel Management & Catering Technology
C) ITC Institute
D) NRAI Academy
Answer: B
Q73. The Tourism Guide Upskilling Pilot scales across how many iconic tourist sites?
A) 10
B) 15
C) 20
D) 25
Answer: C
Q74. The Tourism Guide training course duration under the pilot is:
A) 8 weeks
B) 10 weeks
C) 12 weeks
D) 16 weeks
Answer: C
Q75. Which institute partners with the Tourism Guide Upskilling Programme?
A) NITI Aayog
B) Indian Institute of Management
C) NASSCOM
D) Federation of Indian Chambers of Commerce
Answer: B
Q76. How many archaeological sites are planned to be transformed into vibrant, experiential destinations?
A) 10
B) 12
C) 15
D) 20
Answer: C
Q77. Which of the following archaeological sites is mentioned for transformation?
A) Mohenjo-daro
B) Lothal
C) Both A and B
D) Neither A nor B
Answer: B
Q78. The Buddhist Circuit Development covers which region?
A) South India only
B) North-East region (Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram, Tripura)
C) Central India
D) Western India
Answer: B
Q79. The International Big Cat Alliance had its first-ever Global Big Cat Summit in:
A) 2025
B) 2026
C) 2027
D) 2028
Answer: B
Q80. How many range countries participated in the Global Big Cat Summit?
A) 50
B) 75
C) 95
D) 120
Answer: C
Q81. Sustainable Trekking Infrastructure includes trails in the Himalayas and:
A) Sahyadri Ranges
B) Araku Valley (Eastern Ghats) and Podhigai Malai (Western Ghats)
C) Nilgiris
D) Cardamom Hills
Answer: B
Q82. Turtle Trails are developed in coastal areas including:
A) Only Kerala
B) Only Odisha
C) Odisha, Karnataka, and Kerala
D) Maharashtra and Goa
Answer: C
Q83. The Khelo India Mission is based on a:
A) 5-year vision
B) 8-year vision
C) 10-year vision
D) 15-year vision
Answer: C
Q84. The Khelo India Mission includes how many component areas?
A) 3
B) 4
C) 5
D) 6
Answer: C
Q85. The talent development pathway in Khelo India includes:
A) Only foundational training
B) Foundational, intermediate, and elite-level training
C) Only elite-level training
D) Only intermediate training
Answer: B
Q86. Sports Science & Technology Integration in Khelo India emphasizes:
A) Only traditional methods
B) Modern technology adoption and data-driven athlete development
C) Elimination of coaching
D) Individual-only training
Answer: B
Q87. Livestock contributes what percentage to farm income?
A) 10%
B) 14%
C) 16%
D) 20%
Answer: C
Q88. How many reservoirs and Amrit Sarovars are planned to be developed?
A) 200
B) 300
C) 400
D) 500
Answer: D
Q89. The Coconut Promotion Scheme focuses on which aspect?
A) Coconut export subsidies
B) Old/non-productive tree replacement with new saplings/varieties
C) Import substitution
D) Price controls
Answer: B
Q90. How many people in India are dependent on coconut sector (including farmers)?
A) 10 million people (5 million farmers)
B) 15 million people (8 million farmers)
C) 20 million people (10 million farmers)
D) 30 million people (10 million farmers)
Answer: D
Q91. The target year for “Indian Cashew” and “Indian Cocoa” to become premium global brands is:
A) 2028
B) 2030
C) 2032
D) 2035
Answer: B
Q92. BHARAT-VISTAAR (Virtually Integrated System to Access Agricultural Resources) is a:
A) Physical storage system
B) Multilingual AI tool integrated with AgriStack and ICAR
C) Government procurement platform
D) Insurance scheme
Answer: B
Q93. The SHE-Marts initiative builds on which existing programme?
A) PM-KISAN
B) Pradhan Mantri Mudra Yojana
C) Lakhpati Didi Programme
D) Swachh Bharat
Answer: C
Q94. SHE-Marts are structured as:
A) Government-owned retail outlets
B) Private corporate franchises
C) Community-owned retail outlets integrated at cluster-level federation
D) E-commerce platforms
Answer: C
Q95. The Divyangjan Kaushal Yojana targets employment in:
A) Only IT sector
B) IT, AVGC, Hospitality, Food & Beverages
C) Only manufacturing
D) Only agriculture
Answer: B
Q96. ALIMCO stands for:
A) Artificial Learning for India Manufacturing Council
B) Artificial Limbs Manufacturing Corporation of India
C) Assistive Living & Manufacturing Co. India
D) Advanced Logistics & Manufacturing Council
Answer: B
Q97. Assistive Technology Marts allow customers to:
A) Only purchase assistive devices
B) See, try, and purchase assistive products
C) Only rent devices
D) View catalogs only
Answer: B
Q98. NIMHANS-2 will be established in:
A) South India
B) North India
C) Eastern India
D) North-Eastern India
Answer: B
Q99. The Emergency and Trauma Care Centre expansion targets:
A) 25% capacity increase
B) 35% capacity increase
C) 50% capacity increase
D) 75% capacity increase
Answer: C
Q100. The 16th Finance Commission submission date to the President was:
A) 15 November 2025
B) 17 November 2025
C) 20 November 2025
D) 25 November 2025
Answer: B
Q101. The Finance Commission’s vertical devolution share has been retained at:
A) 39%
B) 40%
C) 41%
D) 42%
Answer: C
Q102. Finance Commission Grants for FY2026-27 are:
A) ₹1 lakh crore
B) ₹1.2 lakh crore
C) ₹1.4 lakh crore
D) ₹1.6 lakh crore
Answer: C
Q103. The target for Debt-to-GDP ratio by 2030-31 is:
A) 45±1%
B) 50±1%
C) 55±1%
D) 60±1%
Answer: B
Q104. Debt-to-GDP ratio in Budget Estimate 2026-27 is:
A) 54.6% of GDP
B) 55.6% of GDP
C) 56.6% of GDP
D) 57.6% of GDP
Answer: B
Q105. FY2025-26 fiscal deficit (RE) was:
A) 4.2% of GDP
B) 4.4% of GDP
C) 4.6% of GDP
D) 4.8% of GDP
Answer: B
Q106. FY2026-27 fiscal deficit (BE) is:
A) 4.1% of GDP
B) 4.2% of GDP
C) 4.3% of GDP
D) 4.5% of GDP
Answer: C
Q107. The FY2021-22 fiscal deficit target of below 4.5% by 2025-26:
A) Was not met
B) Was exceeded
C) Was met
D) Is not applicable
Answer: C
Q108. Non-Debt Receipts in Revised Estimates 2025-26 are:
A) ₹32 lakh crore
B) ₹33 lakh crore
C) ₹34 lakh crore
D) ₹35 lakh crore
Answer: C
Q109. Centre’s Net Tax Receipts in RE 2025-26 are:
A) ₹24 lakh crore
B) ₹26.7 lakh crore
C) ₹28.7 lakh crore
D) ₹30 lakh crore
Answer: B
Q110. Total Expenditure in RE 2025-26 is:
A) ₹47.6 lakh crore
B) ₹48.6 lakh crore
C) ₹49.6 lakh crore
D) ₹50.6 lakh crore
Answer: C
Q111. Capital Expenditure in RE 2025-26 is approximately:
A) ₹9 lakh crore
B) ₹10 lakh crore
C) ₹11 lakh crore
D) ₹12 lakh crore
Answer: C
Q112. Non-Debt Receipts in Budget Estimates 2026-27 are:
A) ₹34.5 lakh crore
B) ₹35.5 lakh crore
C) ₹36.5 lakh crore
D) ₹37.5 lakh crore
Answer: C
Q113. Centre’s Net Tax Receipts in BE 2026-27 are:
A) ₹26.7 lakh crore
B) ₹27.7 lakh crore
C) ₹28.7 lakh crore
D) ₹29.7 lakh crore
Answer: C
Q114. Total Expenditure in BE 2026-27 is:
A) ₹51.5 lakh crore
B) ₹52.5 lakh crore
C) ₹53.5 lakh crore
D) ₹54.5 lakh crore
Answer: C
Q115. The primary financing source for fiscal deficit in 2026-27 is:
A) Small savings only
B) Other revenue sources only
C) Net market borrowings (dated securities)
D) External borrowings
Answer: C
Q116. Net market borrowings (dated securities) for FY2026-27 financing is:
A) ₹10.7 lakh crore
B) ₹11.2 lakh crore
C) ₹11.7 lakh crore
D) ₹12.7 lakh crore
Answer: C
Q117. Gross Market Borrowings for FY2026-27 is:
A) ₹15.2 lakh crore
B) ₹16.2 lakh crore
C) ₹17.2 lakh crore
D) ₹18.2 lakh crore
Answer: C
Q118. Which combination of schemes specifically targets addressing the challenge of girl students in STEM education?
A) Only Girls’ Hostel scheme
B) Girls’ Hostel + AVGC Content Creator Labs + National Institute of Design
C) Only higher education scholarships
D) Only online education platforms
Answer: B
Q119. The budget’s approach to manufacturing sector development emphasizes:
A) Only large-scale production
B) Diversification across 7 strategic sectors with focus on capabilities, supply chains, and workforce development
C) Elimination of imports
D) Price controls
Answer: B
Q120. Regional balanced development is addressed through:
A) Only North-East focus
B) Purvodaya, North-East, CERs in Tier-II/III cities, and Buddhist Circuit Development
C) Only Tier-I cities
D) Agricultural areas only
Answer: B
Q121. Which initiative creates a direct linkage between government procurement and MSME financing?
A) SME Growth Fund
B) GeM-TReDS Linkage
C) Self-Reliant India Fund
D) Corporate Mitras
Answer: B
Q122. The CCUS roadmap aligns with which national priority?
A) Agricultural subsidy reduction
B) Climate change mitigation across energy-intensive sectors
C) Only power generation
D) Eliminating industrial activity
Answer: B
Q123. Which scheme directly addresses the challenge of unexpected medical expenses for vulnerable populations?
A) Medical Value Tourism Hubs
B) Allied Health Professionals scheme
C) Emergency and Trauma Care Centre Expansion (50% capacity increase)
D) AYUSH development only
Answer: C
Q124. The budget demonstrates commitment to financial inclusion through:
A) Only bank branch expansion
B) 98%+ village banking coverage maintenance + TReDS liquidity + Municipal bonds + PROI liberalization
C) Only digital payment promotion
D) Government loan distribution
Answer: B
Q125. Which programme specifically transitions rural women from credit users to enterprise owners?
A) Pradhan Mantri Mudra Yojana
B) SHE-Marts (transitioning from Lakhpati Didi Programme)
C) Mahila Shakti Centre
D) Rashtriya Mahila Kosh
Answer: B
Q126. The budget’s approach to Tier-II and Tier-III city development includes:
A) Only infrastructure
B) CERs with reform-based financing + University Townships + Design Institute + Hospitality upgrades
C) Only agricultural support
D) Manufacturing only
Answer: B
Q127. Which sector receives highest integrated support across multiple schemes?
A) Agriculture only
B) Manufacturing and textile (7 strategic sectors + dedicated parks + legacy cluster rejuvenation)
C) Only services
D) Only retail
Answer: B
PART B: INDIA’S BUDGET 2026-27
Q128. The animal husbandry initiatives aim to achieve which outcome?
A) Only milk production increase
B) Scale veterinary professionals by 20,000+ through diverse support across sectors
C) Import reduction
D) Price controls
Answer: B
Q129. The New Income Tax Act, 2025 announcement was made in:
A) July 2023
B) July 2024
C) January 2025
D) March 2025
Answer: B
Q130. The completion of New Income Tax Act, 2025 was achieved in:
A) 6 months
B) 9 months (record time)
C) 12 months
D) 18 months
Answer: B
Q131. The effective date of the New Income Tax Act, 2025 is:
A) 1st January 2026
B) 1st March 2026
C) 1st April 2026
D) 1st July 2026
Answer: C
Q132. The original Income Tax Act being comprehensively reviewed is from which year?
A) 1957
B) 1961
C) 1971
D) 1981
Answer: B
Q133. The New Income Tax Act, 2025 primarily aims to:
A) Increase tax rates uniformly
B) Remove outdated provisions and align with modern economy while easing citizen compliance
C) Expand tax base through new categories
D) Introduce digital currency taxation
Answer: B
Q134. Motor Accident Claims Tribunal interest exemption applies to:
A) All taxpayers
B) Corporate entities only
C) Natural persons receiving accident compensation
D) Insurance companies
Answer: C
Q135. TDS elimination on Motor Accident Claims Tribunal interest benefits:
A) Insurance companies
B) Accident victims receive full awarded amount without tax deduction
C) Hospital authorities
D) Legal practitioners
Answer: B
Q136. The current TCS rate on overseas tour programs is:
A) 2% and 5%
B) 5% and 10%
C) 5% and 20%
D) 10% and 20%
Answer: C
Q137. The proposed TCS rate on overseas tour programs is:
A) 1%
B) 2%
C) 3%
D) 5%
Answer: B
Q138. The condition for the reduced TCS rate on overseas tours is:
A) Amount must exceed ₹10 lakh
B) Tourism board approval required
C) No amount stipulation
D) Restricted to specific countries
Answer: C
Q139. Education and Medical LRS (Liberalized Remittance Scheme) current TCS rate is:
A) 2%
B) 3%
C) 5%
D) 10%
Answer: C
Q140. The proposed TCS rate for Education and Medical LRS is:
A) 1%
B) 2%
C) 3%
D) 5%
Answer: B
Q141. Manpower services TCS rationalization proposes a rate of:
A) 0.5% or 1%
B) 1% or 2%
C) 2% or 3%
D) 3% or 5%
Answer: B
Q142. Manpower services TCS standardization primarily eliminates:
A) All TCS requirements
B) Ambiguity in classification and compliance pathway
C) Mandatory reporting requirements
D) Labor contract requirements
Answer: B
Q143. Small Taxpayer Deduction Certificate Automation features which mechanism?
A) Manual assessing officer application
B) Rule-based automated process (no assessing officer application required)
C) Quarterly review by tax authorities
D) Annual verification requirement
Answer: B
Q144. Under automated deduction certificate issuance:
A) Assessing officer determines eligibility
B) Self-assessment determines lower/nil deduction eligibility with instant digital issuance
C) Revenue board approval is mandatory
D) State government certification required
Answer: B
Q145. Securities Deposition Form Simplification allows:
A) Multiple forms for multiple companies
B) Depositories to accept Forms 15G/15H directly and distribute to relevant companies
C) Manual submission only
D) Annual submission only
Answer: B
Q146. The benefit of accepting Forms 15G/15H directly at depositories is:
A) Increased documentation requirement
B) Single form submission for multiple entities with automated distribution
C) Extended filing deadline
D) Reduced tax rate
Answer: B
Q147. Return Revision Timeline Extension current deadline is:
A) 30th September
B) 31st December
C) 31st March
D) 30th June
Answer: B
Q148. The proposed extended revision deadline is:
A) 31st January
B) 31st February
C) 31st March
D) 30th April
Answer: C
Q149. The nominal fee for late return revision is designed to:
A) Increase revenue only
B) Prevent frivolous revisions while allowing genuine corrections
C) Eliminate all revisions
D) Replace penalty system
Answer: B
Q150. ITR-1 and ITR-2 filing deadline remains unchanged at:
A) 30th June
B) 31st July
C) 31st August
D) 30th September
Answer: B
Q151. The extended deadline for non-audit business cases and trusts is:
A) 31st August
B) 30th September
C) 31st October
D) 30th November
Answer: A
Q152. Staggered ITR filing timeline rationale is:
A) Increase penalties for late filers
B) Reduce administrative bottlenecks and accommodate preparation complexity
C) Force earlier compliance
D) Eliminate trust return filing
Answer: B
Q153. Non-Resident Property Sale TDS current requirement involves:
A) PAN only
B) Resident buyer using TAN (Tax Account Number)
C) Direct deposit at RBI
D) Prescribed form submission
Answer: B
Q154. The proposed change for Non-Resident Property Sale TDS uses:
A) Seller’s TAN
B) Buyer’s PAN-based challan for TDS deduction and deposit
C) Government escrow account
D) Bank intermediary arrangement
Answer: B
Q155. The benefit of PAN-based TDS for property sales is:
A) Increased tax collection
B) Eliminates TAN requirement with simplified process and broader applicability
C) Mandatory bank verification
D) Extended compliance period
Answer: B
Q156. The One-Time Foreign Asset Disclosure Scheme duration is:
A) 3 months
B) 6 months
C) 12 months
D) 24 months
Answer: B
Q157. The scheme specifically targets which group?
A) Only high net worth individuals
B) Students, young professionals, tech sector employees, relocated NRIs, and others with overseas asset complexity
C) Multinational corporations
D) Government employees
Answer: B
Q158. Category A scheme covers non-disclosure of overseas income/assets up to:
A) ₹50 lakh
B) ₹75 lakh
C) ₹1 crore
D) ₹5 crore
Answer: C
Q159. Category A tax obligation includes 30% of FMV as tax plus:
A) 10% of undisclosed income
B) 20% of undisclosed income
C) 30% of undisclosed income as additional income tax
D) 50% of undisclosed income
Answer: C
Q160. The total effective tax rate under Category A is:
A) 30%
B) 45%
C) 60%
D) 75%
Answer: C
Q161. Category A provides immunity from:
A) Tax liability only
B) Prosecution only
C) Both prosecution and penalties
D) Interest payment
Answer: C
Q162. Category B scheme applies to disclosed income but undeclared assets up to:
A) ₹1 crore
B) ₹2.5 crore
C) ₹5 crore
D) ₹10 crore
Answer: C
Q163. Category B one-time fee is:
A) ₹50,000
B) ₹75,000
C) ₹1 lakh
D) ₹5 lakh
Answer: C
Q164. Category B immunity applies to:
A) Penalty only
B) Prosecution only
C) Both penalty and prosecution
D) Interest charges
Answer: C
Q165. The key requirement for Category B eligibility is:
A) Minimum asset value
B) Having paid due tax on disclosed income and inability to declare acquired asset
C) Foreign residency
D) Annual income threshold
Answer: B
Q166. Integrated Assessment & Penalty Proceedings proposes:
A) Separate assessment orders followed by penalty orders
B) Single common order for both assessment and penalty
C) Elimination of penalties
D) Assessment-only focus
Answer: B
Q167. Under integrated proceedings, interest on penalty during appeal to First Appellate Authority is:
A) 50% of penalty
B) Full penalty interest
C) No interest liability
D) Interest doubled
Answer: C
Q168. The immunity on appeal interest applies:
A) Only if appeal succeeds
B) Irrespective of appeal outcome
C) Only for partial penalties
D) After appeal conclusion
Answer: B
Q169. Current pre-payment reduction for penalty demand is:
A) 5% of demand
B) 10% of demand
C) 20% of demand
D) 30% of demand
Answer: C
Q170. Proposed pre-payment reduction for penalty demand is:
A) 5% of demand
B) 10% of demand
C) 15% of demand
D) 20% of demand
Answer: B
Q171. Pre-payment reduction calculation basis excludes:
A) Core tax only
B) Interest and penalties
C) Surcharges and penalties
D) All components
Answer: B
Q172. Return Update After Reassessment Initiation includes:
A) 5% tax surcharge
B) 8% tax surcharge
C) 10% tax surcharge
D) 15% tax surcharge
Answer: C
Q173. The updated return becomes:
A) Secondary basis for assessment
B) Primary basis for assessing officer proceedings
C) Optional reference
D) Superseded document
Answer: B
Q174. Misreporting Immunity Framework additional tax obligation is:
A) 50% of tax amount
B) 100% of tax amount as additional income tax (beyond regular tax and interest)
C) 150% of tax amount
D) 200% of tax amount
Answer: B
Q175. Misreporting immunity provides:
A) Penalty immunity only
B) Prosecution immunity only
C) Both penalty and prosecution immunity
D) Interest waiver
Answer: C
Q176. Technical Default Penalties converted to fee include:
A) Only audit-related penalties
B) Failure to get accounts audited, non-furnishing transfer pricing report, financial transaction statement default
C) Only transfer pricing penalties
D) All criminal penalties
Answer: B
Q177. Converting technical penalties to fees primarily:
A) Increases revenue
B) Reduces penalty quantum and simplifies compliance characterization
C) Eliminates all penalties
D) Transfers to state authorities
Answer: B
Q178. Decriminalization under prosecution framework rationalization includes:
A) Non-production of books of account → No criminal liability
B) TDS non-compliance in kind transactions → Decriminalized
C) Both A and B
D) Elimination of all criminal penalties
Answer: C
Q179. Minor offences under new prosecution framework face:
A) Imprisonment only
B) Fine only with no imprisonment
C) Dual penalty (fine and imprisonment)
D) Penalty elimination
Answer: B
Q180. Maximum imprisonment period under rationalized prosecution is:
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Answer: B
Q181. Court power under new framework allows:
A) Imprisonment only
B) Fine only
C) Converting imprisonment to fine
D) Sentencing discretion removal
Answer: C
Q182. Non-Immovable Foreign Asset Prosecution Immunity current threshold is:
A) ₹10 lakh
B) ₹15 lakh
C) ₹20 lakh
D) ₹25 lakh
Answer: C
Q183. Prosecution immunity for non-immovable foreign assets is effective from:
A) 1st April 2025
B) 1st October 2024
C) 1st January 2026
D) 1st April 2026
Answer: B
Q184. Non-immovable foreign asset prosecution immunity is:
A) Only penalty relief
B) Retrospective from 1st October 2024
C) Prospective only
D) Limited to specific assets
Answer: B
Q185. Cooperative Deduction Expansion current scope includes:
A) Only milk supply
B) Milk, oilseeds, fruits, vegetables (member-produced)
C) Only agricultural products
D) All products without restriction
Answer: B
Q186. The expansion adds which products to Cooperative Deduction?
A) Rubber and tea
B) Cattle feed and cotton seed (member-produced)
C) Sugar and spices
D) Coffee and coconut
Answer: B
Q187. Inter-Cooperative Dividend Deduction applies to:
A) All dividend income
B) Dividends from other cooperatives with further distribution to member cooperatives
C) Only primary cooperative dividends
D) Government dividends
Answer: B
Q188. Inter-Cooperative Dividend Deduction is available under:
A) Old tax regime only
B) New tax regime only
C) Both regimes
D) No specific regime
Answer: B
Q189. National Cooperative Federation Dividend Exemption period is:
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Answer: C
Q190. Cooperative Federation exemption applies to investments made up to:
A) 31st December 2025
B) 31st January 2026
C) 31st March 2026
D) 30th June 2026
Answer: B
Q191. Exemption under National Cooperative Federation applies to:
A) All income
B) Capital gains only
C) Dividend income only
D) Interest income
Answer: C
Q192. The condition for exemption benefit is:
A) Retained earnings in federation
B) Dividends further distributed to member cooperatives
C) No dividend distribution
D) Investment in government securities
Answer: B
Q193. Global leadership areas in IT services include:
A) Only software development
B) Software development, IT-enabled services, KPO, Contract R&D (software-related)
C) Hardware manufacturing only
D) Retail IT services
Answer: B
Q194. IT Services Unified Category consolidates:
A) Only software companies
B) Only service providers
C) All IT services segments under single category: Information Technology Services
D) Manufacturing and services separately
Answer: C
Q195. Safe Harbour Margin for IT services is:
A) 10%
B) 12.5%
C) 15.5%
D) 20%
Answer: C
Q196. Safe Harbour Threshold has been increased from ₹300 crore to:
A) ₹750 crore
B) ₹1,000 crore
C) ₹1,500 crore
D) ₹2,000 crore
Answer: D
Q197. The percentage increase in Safe Harbour Threshold is:
A) 467%
B) 567%
C) 667%
D) 767%
Answer: B
Q198. Safe Harbour Approval Process for IT services is:
A) Manual with officer discretion
B) Automated rule-driven mechanism without officer discretion
C) Subject to review
D) Annual verification required
Answer: B
Q199. Once applied for Safe Harbour, company can continue for:
A) 2 consecutive years
B) 3 consecutive years
C) 5 consecutive years uninterrupted
D) 10 consecutive years
Answer: C
Q200. Safe Harbour continuation is:
A) Mandatory for all companies
B) At company’s choice to continue or discontinue
C) Subject to approval renewal
D) Based on performance
Answer: B
Q205. Data Centre Cloud Services Tax Holiday period is:
A) 10 years (till 2035)
B) 15 years (till 2040)
C) 22 years (till 2047)
D) 25 years (till 2050)
Answer: C
Q206. Data Centre Tax Holiday beneficiary is:
A) Only Indian companies
B) Foreign companies providing cloud services globally
C) Only government entities
D) Non-profit organizations
Answer: B
Q207. The condition for Data Centre Tax Holiday is:
A) Services only to foreign customers
B) Must provide services to Indian customers through Indian reseller entity
C) Services to SAARC countries
D) No service restriction
Answer: B
Q208. Related Entity Data Centre Safe Harbour margin is:
A) 10% profit on cost
B) 12% profit on cost
C) 15% profit on cost
D) 20% profit on cost
Answer: C
Q209. Related Entity Data Centre benefit includes:
A) Full tax exemption
B) Substantially lower profit margin than competing jurisdictions
C) Interest waiver
D) Government subsidy
Answer: B
Q210. Electronic Manufacturing JIT Logistics Safe Harbour margin is:
A) 0.5% of invoice value
B) 1% of invoice value
C) 2% of invoice value
D) 5% of invoice value
Answer: C
Q211. Electronic Manufacturing JIT Logistics beneficiary operates in:
A) Free trade zones
B) Bonded warehouse (duty-free zone)
C) Regular industrial zones
D) Special economic zones
Answer: B
Q212. Electronic Manufacturing JIT Logistics effective tax rate is approximately:
A) 0.2%
B) 0.7%
C) 1.5%
D) 2.5%
Answer: B
Q219. Current separate accounting standards issue involves:
A) IndAS only
B) ICDS only
C) IndAS for financial reporting, ICDS for tax separately
D) No separate standards
Answer: C
Q220. ICDS Integration into IndAS will be implemented by:
A) Tax year 2025-26
B) Tax year 2026-27
C) Tax year 2027-28
D) Tax year 2028-29
Answer: C
Q221. ICDS Integration implementation involves:
A) Ministry of Finance only
B) Ministry of Corporate Affairs + Central Board of Direct Taxes
C) RBI exclusively
D) State governments
Answer: B
Q222. The primary benefit of ICDS-IndAS integration is:
A) Increased compliance
B) Eliminates dual compliance and aligns financial and tax accounting
C) Higher tax collection
D) Simplified accounting only
Answer: B
Q223. Accountant Definition Rationalization aims to:
A) Reduce accountant fees
B) Support PM Modi’s vision of home-grown accounting firms becoming global leaders
C) Eliminate accountant roles
D) Increase regulatory burden
Answer: B
Q224. Buyback Taxation Rationalization treats buybacks as:
A) Income for all shareholders
B) Capital gains for uniform treatment across shareholders
C) Dividend distribution
D) Debt repayment
Answer: B
Q225. Promoter Additional Buyback Tax for corporate promoters is:
A) 15%
B) 20%
C) 22%
D) 30%
Answer: C
Q226. Promoter Additional Buyback Tax for non-corporate promoters is:
A) 22%
B) 25%
C) 30%
D) 35%
Answer: C
Q227. Buyback Taxation Rationalization primarily protects:
A) Government revenue only
B) Promoter interests
C) Minority shareholder interests through capital gains taxation
D) Company profitability
Answer: C
Q228. TCS rate reduction on alcoholic liquor, scrap materials, and minerals is:
A) 1%
B) 2%
C) 3%
D) 5%
Answer: B
Q229. Tendu Leaves TCS current rate is:
A) 2%
B) 3%
C) 5%
D) 10%
Answer: C
Q230. Tendu Leaves TCS proposed rate is:
A) 1%
B) 2%
C) 3%
D) 4%
Answer: B
Q231. TCS Rationalization benefit includes:
A) Increased rate structure
B) Simplified rate structure and reduced compliance burden
C) Eliminating all rates
D) Complex classification
Answer: B
Q232. Securities Transaction Tax (STT) Futures current rate is:
A) 0.01%
B) 0.02%
C) 0.05%
D) 0.10%
Answer: B
Q233. STT Futures proposed rate is:
A) 0.03%
B) 0.05%
C) 0.07%
D) 0.10%
Answer: B
Q234. STT Options Premium current rate is:
A) 0.08%
B) 0.10%
C) 0.12%
D) 0.15%
Answer: B
Q235. STT Options Premium proposed rate is:
A) 0.12%
B) 0.15%
C) 0.18%
D) 0.20%
Answer: B
Q236. STT Options Exercise current rate is:
A) 0.10%
B) 0.125%
C) 0.15%
D) 0.20%
Answer: B
Q237. STT Options Exercise proposed rate is:
A) 0.125%
B) 0.15%
C) 0.18%
D) 0.20%
Answer: B
Q238. Corporate Tax Regime Transition Incentive restricts brought-forward MAT credit usage to:
A) 10% of tax liability
B) 15% of tax liability
C) 25% (1/4) of tax liability
D) 50% of tax liability
Answer: C
Q239. MAT becomes final tax effective:
A) 1st April 2025
B) 1st April 2026
C) 1st April 2027
D) 1st April 2028
Answer: B
Q240. Final Tax Conversion stops MAT credit accumulation from:
A) 31st March 2025
B) 31st March 2026
C) 31st March 2027
D) 31st March 2028
Answer: B
Q241. Current MAT rate is:
A) 13%
B) 14%
C) 15%
D) 18%
Answer: C
Q242. New Final Tax rate is:
A) 13%
B) 14%
C) 15%
D) 16%
Answer: B
Q243. MAT to Final Tax rate reduction is:
A) 0.5%
B) 1%
C) 1.5%
D) 2%
Answer: B
Q244. Brought-forward MAT credits through 31st March 2026:
A) Eliminated entirely
B) Continue available for set-off subject to 1/4 limitation in new regime
C) Doubled in value
D) Transferred to future years
Answer: B
Q245. Indirect tax reform objectives include (select all applicable):
A) Simplify tariff structure
B) Support domestic manufacturing
C) Promote export competitiveness
D) All of the above
Answer: D
Q246. Long-Standing Exemptions Review removal criteria includes:
A) Items now manufactured domestically
B) Minimal or negligible imports
C) Both A and B
D) Government recommendation only
Answer: C
Q247. Tariff Schedule Modernization incorporates:
A) Separate notifications only
B) Effective rates directly into tariff schedule
C) Government orders
D) Industry advisory notes
Answer: B
Q248. Benefit of incorporating rates in tariff schedule is:
A) Increased compliance burden
B) Simplified rate ascertainment and enhanced clarity
C) Additional notification requirement
D) Reduced transparency
Answer: B
Q249. Marine & Seafood Export Support duty-free input current limit is:
A) 1% of FOB value of previous year export
B) 2% of FOB value
C) 3% of FOB value
D) 5% of FOB value
Answer: A
Q250. Marine & Seafood Export Support proposed duty-free limit is:
A) 2% of FOB value
B) 2.5% of FOB value
C) 3% of FOB value
D) 4% of FOB value
Answer: C
Q251. Shoe Uppers Duty-Free Facility current availability is:
A) All footwear exports
B) Only shoe/synthetic footwear exports
C) All leather products
D) No restriction
Answer: B
Q252. Shoe Uppers Duty-Free Facility extension includes:
A) Only leather garments
B) Shoe Uppers exports also
C) All apparel
D) Textile products
Answer: B
Q253. Leather Product Export current timeline is:
A) 3 months from initial export clearance
B) 6 months from clearance
C) 9 months from clearance
D) 12 months from clearance
Answer: B
Q254. Leather Product Export proposed timeline is:
A) 9 months from clearance
B) 12 months from clearance
C) 1 year from clearance
D) 18 months from clearance
Answer: C
Q255. Extended timeline applies to:
A) Only leather garments
B) Only footwear
C) Leather/textile garments, footwear, other leather products
D) All exports
Answer: C
SECTION 25: ENERGY TRANSITION & CRITICAL INFRASTRUCTURE
Q256. Lithium-Ion Battery Manufacturing duty exemption extends to:
A) Cells only
B) Cells and battery energy storage systems (BESS)
C) Manufacturing equipment only
D) Raw materials
Answer: B
Q257. BESS manufacturing exemption involves:
A) Capital gains tax
B) Income tax
C) Basic customs duty
D) Excise duty
Answer: C
Q258. Solar Glass Manufacturing input material exemption is for:
A) Silicon
B) Sodium antimonate
C) Aluminum oxide
D) Zinc oxide
Answer: B
Q259. Solar Glass Manufacturing exemption supports:
A) Solar panel assembly only
B) Renewable energy manufacturing by reducing production costs
C) Import substitution only
D) Government procurement
Answer: B
Q260. Nuclear Power Projects Capital Goods Exemption extends till:
A) 2030
B) 2033
C) 2035
D) 2040
Answer: C
Q261. Nuclear Power Projects Exemption currently:
A) Has capacity restrictions
B) Previously capacity-restricted but now applies to all nuclear plants
C) Only small reactors
D) Foreign plants only
Answer: B
Q262. Critical Minerals Processing capital goods exemption covers:
A) Import duties only
B) Basic customs duty on imports
C) All taxation
D) Income tax
Answer: B
Q263. Critical Minerals Processing exemption objective is:
A) Revenue collection
B) Supports domestic value chain and reduces import costs
C) Trade restriction
D) Government monopoly
Answer: B
Q264. Biogas Blended CNG current excise situation:
A) No duty
B) Duty on full value
C) Reduced duty
D) Variable duty
Answer: B
Q265. Biogas Blended CNG proposed treatment excludes:
A) CNG component
B) Biogas value from excise duty calculation
C) Fossil component
D) All energy content
Answer: B
Q266. Biogas Blending excise benefit primarily:
A) Reduces CNG cost
B) Environmental benefit and renewable energy promotion
C) Increases government revenue
D) Restricts imports
Answer: B
Q267. Civilian Aircraft Manufacturing exemption applies to:
A) Only commercial aircraft
B) Civilian, training, and other aircraft types
C) Military aircraft only
D) Cargo aircraft
Answer: B
Q268. Aircraft exemption covers:
A) Only assembly
B) Final products only
C) Components & parts for manufacturing
D) Only imports
Answer: C
Q269. Defence Aircraft MRO exemption applies to:
A) Raw materials for parts manufacture
B) Finished aircraft parts
C) Aircraft engines
D) Only imported components
Answer: A
Q270. Defence Aviation exemption benefits:
A) Import substitution
B) Reduces MRO costs and supports defence sector self-reliance
C) Increases domestic manufacturing
D) Government procurement only
Answer: B
Q271. Microwave Oven Manufacturing exemption applies to:
A) Only complete products
B) Specified parts used in manufacturing
C) Raw materials
D) Assembly labor
Answer: B
Q272. Microwave Oven Manufacturing exemption type is:
A) Income tax
B) Basic customs duty
C) Excise duty
D) Sales tax
Answer: B
Q273. Microwave Manufacturing exemption strategic goal is:
A) Import restriction
B) Deepen value addition in consumer electronics sector
C) Government monopoly
D) Price control
Answer: B
Q274. SEZ-DTA Concessional Sales measure is:
A) Permanent policy
B) One-time special provision
C) Annual review basis
D) Conditional on exports
Answer: B
Q275. SEZ-DTA Sales challenge addressed by measure is:
A) Overcapacity
B) Capacity underutilization due to global trade disruptions
C) Export reduction
D) Domestic market restriction
Answer: B
Q276. SEZ-DTA Concessional Sales mechanism includes:
A) Full duty exemption
B) Concessional duty rates on sale to DTA market
C) Zero rating
D) Government subsidy
Answer: B
Q277. SEZ-DTA Sales quantity limitation is:
A) Unlimited
B) Prescribed proportion of annual exports
C) Percentage of domestic sales
D) Government allocation
Answer: B
Q278. Personal Use Goods Duty current rate is:
A) 10%
B) 15%
C) 20%
D) 25%
Answer: C
Q279. Personal Use Goods Duty proposed rate is:
A) 5%
B) 10%
C) 15%
D) 20%
Answer: B
Q280. Personal Import Duty reduction benefit includes:
A) Trade restriction
B) Reduced travel hassles, updated provisions, expatriate support
C) Revenue increase
D) Import quotas
Answer: B
Q281. Cancer Drugs Duty Exemption covers:
A) 5 critical drugs
B) 10 critical drugs
C) 17 critical drugs/medicines
D) 25 critical drugs
Answer: C
Q282. Cancer Drugs Exemption type of duty is:
A) Income tax
B) Sales tax
C) Basic customs duty
D) Excise duty
Answer: C
Q283. Cancer Drugs Exemption primary beneficiary is:
A) Pharmaceutical companies
B) Doctors
C) Cancer patients
D) Government
Answer: C
Q284. Rare Disease Medicines Expansion adds:
A) 3 additional diseases
B) 5 additional diseases
C) 7 additional diseases
D) 10 additional diseases
Answer: C
Q285. Rare Disease Medicines Exemption applies to:
A) Prescription fees only
B) Medicines and Food for Special Medical Purposes (FSMP)
C) Hospital charges
D) Treatment procedures
Answer: B
Q286. Rare Disease Medicines Exemption scope is:
A) Hospital imports only
B) Commercial imports
C) Personal imports of drugs and medicines
D) No scope restriction
Answer: C
Q287. Authorised Economic Operator (AEO) current duty deferral period for Tier-2 & 3 is:
A) 7 days
B) 15 days
C) 30 days
D) 45 days
Answer: B
Q288. AEO Duty Deferral Extension proposed period is:
A) 20 days
B) 25 days
C) 30 days
D) 45 days
Answer: C
Q289. Deferral period extension benefit is:
A) Increased interest income
B) Doubles payment deferral and improves cash flow management
C) Reduced compliance requirement
D) Tax exemption
Answer: B
Q290. Manufacturer-Importer Duty Deferral eligibility requires:
A) Government approval
B) Meeting AEO standards
C) Specific size requirement
D) Export quantity threshold
Answer: B
Q291. Advance Ruling current validity is:
A) 1 year from issuance
B) 2 years from issuance
C) 3 years from issuance
D) 5 years from issuance
Answer: C
Q292. Advance Ruling proposed validity extension is:
A) 4 years from issuance
B) 5 years from issuance
C) 7 years from issuance
D) 10 years from issuance
Answer: B
Q293. Extended Advance Ruling validity benefit includes:
A) Lower compliance cost only
B) Extended certainty and multi-year planning horizon
C) Automatic approval
D) Fee reduction
Answer: B
Q294. Whole-of-Government AEO Recognition provides:
A) Tax reduction
B) Preferential treatment and streamlined interactions across government agencies
C) Fee exemption
D) Direct subsidies
Answer: B
Q295. Risk System Trusted Importer Recognition mechanism is:
A) Manual verification
B) Government approval requirement
C) Automated verification minimization for recognized entities
D) Annual review
Answer: C
Q296. Export Cargo Electronic Sealing innovation eliminates:
A) Port documentation
B) Separate port-level clearance procedures
C) Factory inspection
D) Quality control
Answer: B
Q297. Factory Clearance benefit through electronic sealing includes:
A) Reduced documentation
B) Reduced transit time and lower logistics costs
C) Increased inspection
D) Extended processing
Answer: B
Q298. Automatic Clearance for Compliant Imports applies to:
A) All imports
B) Goods without compliance requirements
C) Restricted items only
D) High-value goods
Answer: B
Q299. Automatic Clearance process triggers:
A) Manual officer verification
B) Trusted importer files bill of entry with automatic notification and immediate release
C) Government approval
D) Extended timeline
Answer: B
Q300. Customs Warehousing Framework Transformation moves from:
A) Officer-dependent to operator-centric model with self-declarations and risk-based audit
B) Government-controlled to private warehouses
C) Automated to manual
D) Centralized to dispersed
Answer: A
Q301. Integrated Multi-Agency Digital Window timeline is:
A) By end of FY2025-26
B) By end of FY2026-27
C) By end of FY2027-28
D) By end of FY2028-29
Answer: B
Q302. Integrated Digital Window scope includes:
A) Tax clearances only
B) Environmental clearances only
C) All clearance approvals from Government agencies
D) Only customs clearances
Answer: C
Q303. Compliance-Heavy Categories operationalization timeline is:
A) January 2026
B) March 2026
C) April 2026
D) June 2026
Answer: C
Q304. Compliance-Heavy Categories include:
A) Only food products
B) Foods, drugs, plant, animal, wildlife products (70% of interdicted cargo)
C) Only pharmaceutical items
D) Manufacturing goods
Answer: B
Q305. Zero-Compliance Goods Immediate Release eligibility requirement is:
A) Prior approval
B) Online importer registration completed and duty payment made
C) Minimum import value
D) Government recommendation
Answer: B
Q306. Zero-Compliance Goods release timing is:
A) Within 1 week
B) Within 3 days
C) Same-day or next-day release
D) Within 7 days
Answer: C
Q307. Customs Integrated System (CIS) implementation timeline is:
A) 1 year (by end FY2026-27)
B) 2 years (by end FY2027-28)
C) 3 years (by end FY2028-29)
D) 5 years (by end FY2030-31)
Answer: B
Q308. CIS replaces:
A) Only import systems
B) Fragmented legacy systems with single integrated platform
C) Export procedures only
D) Manual documentation
Answer: B
Q309. Non-Intrusive Scanning Technology expansion involves:
A) Visual inspection only
B) Advanced imaging and AI-powered risk assessment
C) Manual checking
D) Increased physical inspections
Answer: B
Q310. Scanning Technology rollout plan is:
A) Immediate across all ports
B) Phased rollout across major ports with target to scan every container
C) Government facilities only
D) Restricted to major cities
Answer: B
Q311. Fisheries EEZ & High Seas Support geographic scope is:
A) Coastal areas only
B) Exclusive Economic Zone (EEZ) and High Seas
C) Territorial waters only
D) Government ponds
Answer: B
Q312. Duty-Free Fish Catch requirement involves:
A) Government fishing vessels only
B) Fish caught by Indian fishing vessels
C) Foreign catch only
D) No vessel requirement
Answer: B
Q313. High Seas fish landing classification is:
A) Domestic product
B) Treated as goods export with export benefits applying
C) Special commodity
D) Government property
Answer: B
Q314. Fish Catch safeguards protect against:
A) Price fluctuations
B) Misuse during catch, transit, transshipment
C) Production loss
D) Market loss
Answer: B
Q315. E-Commerce Small Business Export Support targets:
A) Large corporations
B) Small businesses, artisans, start-ups accessing global markets
C) Government enterprises
D) Multinational companies
Answer: B
Q316. Courier Export Value Cap removal eliminates:
A) Only documentation requirement
B) ₹10 lakh per consignment limit entirely
C) Export license requirement
D) Customs verification
Answer: B
Q317. Unlimited Export Value Capability benefit includes:
A) Tax reduction only
B) Scalable business growth enabling
C) Reduced compliance
D) Government subsidy
Answer: B
Q318. Rejected/Returned Consignment Handling modernization uses:
A) Manual sorting
B) Technology-enabled identification and processing
C) Government warehousing
D) Seller responsibility
Answer: B
Q319. Baggage Clearance Rules Revision enhances:
A) Only documentation requirements
B) Duty-free allowances aligned with present-day travel realities
C) Inspection procedures
D) Only export items
Answer: B
Q320. Baggage Clearance clarification includes:
A) Only import procedures
B) Temporary carriage of goods (imports and exports)
C) Only restricted items
D) Documentation only
Answer: B
Q321. Penalty Settlement Provision allows:
A) Complete penalty elimination
B) Paying additional amount in lieu of penalty to close cases
C) Extended payment plans
D) Government forgiveness
Answer: B
Q322. Penalty Settlement characterization is:
A) Penalty nomenclature continued
B) Settlement fee (not penalty) nomenclature
C) Interest charge
D) Fine only
Answer: B
Q323. The strategic objective of Penalty Settlement is:
A) Increase revenue only
B) Removes negative connotation and facilitates voluntary settlement
C) Reduce penalties
D) Eliminate disputes
Answer: B
COMPREHENSIVE & ANALYTICAL TAX QUESTIONS
Q324. The Income Tax Act 2025 modernization demonstrates government’s commitment to:
A) Increasing tax rates
B) Removing outdated provisions while aligning with modern economy and easing compliance
C) Expanding penalties
D) Bureaucratic expansion
Answer: B
Q325. Direct tax ease initiatives comprehensively address:
A) Only high-income taxpayers
B) Vulnerable populations (accident victims), travelers, students, medical patients, and honest taxpayers
C) Corporate entities exclusively
D) Government employees
Answer: B
Q326. One-Time Foreign Asset Disclosure Scheme represents a balanced approach through:
A) Only penalty reduction
B) Category A (60% effective rate with immunity) and Category B (₹1 lakh fee with immunity) options
C) Complete amnesty
D) Partial disclosure allowance
Answer: B
Q327. Prosecution Framework Rationalization principle maintains:
A) Maximum criminal liability
B) Deterrence for serious offenses while being proportionate and decriminalizing minor violations
C) All penalties as criminal
D) Eliminate all prosecutions
Answer: B
Q328. IT Sector Tax Support consolidates multiple reforms through:
A) Only rate reduction
B) Safe Harbour unification (15.5% across all segments), threshold enhancement (₹2,000 cr), automated approval, and APA fast-tracking
C) Exemption provision
D) Import duty reduction
Answer: B
Q329. Global Business Attraction strategy combines:
A) Only manufacturing incentives
B) Tax holidays (data centres till 2047), safe harbours (various sectors), and exemptions (non-resident experts)
C) Investment guarantees
D) Price controls
Answer: B
Q330. Indirect tax simplification modernizes customs by:
A) Only increasing duties
B) Moving from complex notifications to integrated tariff schedule and trust-based systems
C) Eliminating all exemptions
D) Manual verification only
Answer: B
