Budget 2025: Best MCQs for Competitive Exams

Feb 2, 2025CategoryBanking General Studies National

Get the best MCQs on Union Budget 2025 for UPSC, SSC, Banking, RRB, and other government exams. This collection covers key highlights, taxation, economic policies, and government schemes. Designed to enhance your exam preparation, these MCQs help you stay updated with the latest budget trends. With accurate answers and explanations, boost your general awareness and score higher in competitive exams!

Budget Estimates for 2025-26

The total revenue, excluding borrowings, is projected at ₹34.96 lakh crore, while the total expenditure is estimated at ₹50.65 lakh crore.
Net tax revenue is expected to reach ₹28.37 lakh crore.
The fiscal deficit is estimated at 4.4% of GDP.
Gross market borrowings are projected to be ₹14.82 lakh crore.
A capital expenditure (Capex) of ₹11.21 lakh crore, accounting for 3.1% of GDP, has been allocated for the fiscal year 2025-26.

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Income Range (₹)	Tax Rate
Up to ₹12 lakh	Nil
₹8–12 lakh	10%
₹12–16 lakh	15%
₹16–20 lakh	20%
₹20–25 lakh	25%
Above ₹25 lakh	30%

Key Points:

No tax is levied on income up to ₹12 lakh.
For income between ₹8 lakh and ₹12 lakh, a 10% tax is applied only to the amount exceeding ₹8 lakh.
For income between ₹12 lakh and ₹16 lakh, a 15% tax is applied only to the amount exceeding ₹12 lakh.
This pattern continues, with higher tax rates applied to higher income slabs.
If someone earns ₹18 lakh annually under the new regime:
- ₹0–12 lakh: 0% tax = ₹0
- ₹12–16 lakh: 15% tax = 15% of ₹4 lakh = ₹60,000
- ₹16–18 lakh: 20% tax = 20% of ₹2 lakh = ₹40,000
- Total tax = ₹60,000 + ₹40,000 = ₹1,00,000

Notes:

The new tax regime is optional, and taxpayers can choose between the old regime (with deductions and exemptions) and the new regime (with lower rates but no deductions).
The new regime is beneficial for individuals who do not have significant investments or expenses that qualify for deductions.

Budget 2025 : Best MCQs for Competitive Exams – MCQs

What is the primary objective of the Prime Minister Dhan-Dhaanya Krishi Yojana?
(A) To develop urban infrastructure
(B) To support 1.7 crore farmers in 100 low-productivity districts
(C) To promote foreign trade
(D) To build roads in rural areas
✅ Answer: (B) To support 1.7 crore farmers in 100 low-productivity districts
What is the focus of the ‘Mission for Aatmanirbharta in Pulses’?
(A) Rice and Wheat
(B) Tur, Urad, and Masoor
(C) Fruits and Vegetables
(D) Cotton and Sugarcane
✅ Answer: (B) Tur, Urad, and Masoor
For how many years is the ‘Mission for Aatmanirbharta in Pulses’ planned?
(A) 3 years
(B) 5 years
(C) 6 years
(D) 10 years
✅ Answer: (C) 6 years
Which organizations will procure pulses from farmers under the new mission?
(A) FCI and NABARD
(B) NAFED and NCCF
(C) ICAR and IFFCO
(D) APEDA and MPEDA
✅ Answer: (B) NAFED and NCCF
Where will a Makhana Board be established?
(A) Punjab
(B) Bihar
(C) West Bengal
(D) Uttar Pradesh
✅ Answer: (B) Bihar
What is the objective of the National Mission on High-Yielding Seeds?
(A) To import seeds from other countries
(B) To strengthen research and develop high-yielding seeds
(C) To reduce seed prices
(D) To ban genetically modified seeds
✅ Answer: (B) To strengthen research and develop high-yielding seeds
The government plans to focus on sustainable fisheries in which areas?
(A) Ganga River Basin
(B) Andaman & Nicobar and Lakshadweep Islands
(C) Western Ghats
(D) Sundarbans Delta
✅ Answer: (B) Andaman & Nicobar and Lakshadweep Islands
What is the duration of the ‘Mission for Cotton Productivity’?
(A) 3 years
(B) 5 years
(C) 7 years
(D) 10 years
✅ Answer: (B) 5 years
What will be the new loan limit under the Modified Interest Subvention Scheme for KCC?
(A) ₹ 2 lakh
(B) ₹ 3 lakh
(C) ₹ 4 lakh
(D) ₹ 5 lakh
✅ Answer: (D) ₹ 5 lakh
Where will a new Urea Plant with an annual capacity of 12.7 lakh metric tons be established?
(A) Gujarat
(B) Assam
(C) Tamil Nadu
(D) Rajasthan
✅ Answer: (B) Assam
What is the goal of the ‘Comprehensive Programme for Vegetables & Fruits’?
(A) To import fruits and vegetables
(B) To promote production, processing, and remunerative prices for farmers
(C) To ban pesticide use
(D) To export only organic produce
✅ Answer: (B) To promote production, processing, and remunerative prices for farmers
How many developing agri-districts will be covered in Phase-1 of the ‘Building Rural Prosperity and Resilience’ program?
(A) 50 districts
(B) 75 districts
(C) 100 districts
(D) 150 districts
✅ Answer: (C) 100 districts
What is the revised classification criteria for MSMEs in terms of investment and turnover?
(A) Investment and turnover limits to remain the same
(B) Investment limit to be enhanced to 2.5 times and turnover to 2 times
(C) Only turnover limit to be enhanced
(D) Investment limit to be reduced
✅ Answer: (B) Investment limit to be enhanced to 2.5 times and turnover to 2 times
What is the limit of the customized credit cards for micro enterprises registered on the Udyam portal?
(A) ₹ 1 lakh
(B) ₹ 5 lakh
(C) ₹ 10 lakh
(D) ₹ 25 lakh
✅ Answer: (B) ₹ 5 lakh
How many customized credit cards will be issued for micro enterprises in the first year?
(A) 5 lakh cards
(B) 10 lakh cards
(C) 20 lakh cards
(D) 50 lakh cards
✅ Answer: (B) 10 lakh cards
What is the contribution amount for the new Fund of Funds for Startups?
(A) ₹ 1,000 crore
(B) ₹ 5,000 crore
(C) ₹ 10,000 crore
(D) ₹ 20,000 crore
✅ Answer: (C) ₹ 10,000 crore
Which groups will benefit from the new scheme for first-time entrepreneurs?
(A) Only women
(B) Scheduled Castes and Scheduled Tribes
(C) Women, Scheduled Castes, and Scheduled Tribes
(D) Small and medium-sized businesses
✅ Answer: (C) Women, Scheduled Castes, and Scheduled Tribes
What is the loan limit for first-time entrepreneurs under the new scheme?
(A) ₹ 50 lakh
(B) ₹ 1 crore
(C) ₹ 2 crore
(D) ₹ 5 crore
✅ Answer: (C) ₹ 2 crore
What will the Focus Product Scheme for Footwear & Leather Sectors aim to enhance?
(A) Production of leather goods
(B) Productivity, quality, and competitiveness of the sector
(C) Imports of footwear
(D) International branding of leather products
✅ Answer: (B) Productivity, quality, and competitiveness of the sector
How many people are expected to be employed due to the Focus Product Scheme for Footwear & Leather Sectors?
(A) 10 lakh persons
(B) 15 lakh persons
(C) 20 lakh persons
(D) 22 lakh persons
✅ Answer: (D) 22 lakh persons
What is the expected turnover from the Focus Product Scheme for Footwear & Leather Sectors?
(A) ₹ 2 lakh crore
(B) ₹ 4 lakh crore
(C) ₹ 6 lakh crore
(D) ₹ 8 lakh crore
✅ Answer: (B) ₹ 4 lakh crore
What is the export target from the Focus Product Scheme for Footwear & Leather Sectors?
(A) ₹ 50,000 crore
(B) ₹ 75,000 crore
(C) ₹ 1 lakh crore
(D) ₹ 1.1 lakh crore
✅ Answer: (D) ₹ 1.1 lakh crore
What is the main aim of the new scheme for the Toy Sector?
(A) To reduce imports of toys
(B) To make India a global hub for toys
(C) To manufacture traditional Indian toys
(D) To improve toy exports
✅ Answer: (B) To make India a global hub for toys
Where will the National Institute of Food Technology, Entrepreneurship, and Management be set up?
(A) Maharashtra
(B) Tamil Nadu
(C) Uttar Pradesh
(D) Bihar
✅ Answer: (D) Bihar
What is the aim of the National Manufacturing Mission?
(A) To reduce manufacturing costs
(B) To cover small, medium, and large industries for “Make in India”
(C) To attract foreign manufacturing companies
(D) To focus on high-tech industries
✅ Answer: (B) To cover small, medium, and large industries for “Make in India”
What is the goal of the Saksham Anganwadi and Poshan 2.0 scheme?
(A) To provide free food to Anganwadi children
(B) To enhance cost norms for nutritional support
(C) To provide health insurance to children
(D) To improve sanitation in Anganwadis
✅ Answer: (B) To enhance cost norms for nutritional support
How many Atal Tinkering Labs will be set up in government schools in the next 5 years?
(A) 10,000
(B) 20,000
(C) 30,000
(D) 50,000
✅ Answer: (D) 50,000
What is the primary objective of the Bharatnet project?
(A) To provide free internet to schools
(B) To improve broadband connectivity to government secondary schools and PHCs in rural areas
(C) To establish broadband infrastructure in urban areas
(D) To provide broadband to private institutions
✅ Answer: (B) To improve broadband connectivity to government secondary schools and PHCs in rural areas
What does the Bharatiya Bhasha Pustak Scheme aim to provide?
(A) Printed Indian language books for schools
(B) Digital-form Indian language books for school and higher education
(C) Free books in regional languages
(D) English language books for rural areas
✅ Answer: (B) Digital-form Indian language books for school and higher education
How many National Centres of Excellence for Skilling will be set up?
(A) 3
(B) 5
(C) 10
(D) 15
✅ Answer: (B) 5
What is the purpose of setting up the Centre of Excellence in AI for Education?
(A) To promote AI research
(B) To teach AI to students
(C) To develop AI solutions for educational institutions
(D) To enhance the use of AI in education
✅ Answer: (D) To enhance the use of AI in education
How much is the total outlay for the Centre of Excellence in AI for education?
(A) ₹ 200 crore
(B) ₹ 300 crore
(C) ₹ 500 crore
(D) ₹ 1,000 crore
✅ Answer: (C) ₹ 500 crore
How many additional seats will be added to medical colleges and hospitals next year?
(A) 5,000
(B) 10,000
(C) 15,000
(D) 20,000
✅ Answer: (B) 10,000
What is the government’s plan for Day Care Cancer Centres in district hospitals?
(A) Set up 100 centres in the next 3 years
(B) Set up 200 centres in 2025-26
(C) Set up 500 centres in 5 years
(D) No plan for Day Care Cancer Centres
✅ Answer: (B) Set up 200 centres in 2025-26
What is the purpose of the scheme for strengthening urban livelihoods?
(A) To increase urban employment opportunities
(B) To provide housing for urban workers
(C) To improve incomes and sustainable livelihoods of urban workers
(D) To establish free daycare services for urban workers
✅ Answer: (C) To improve incomes and sustainable livelihoods of urban workers
What are the key features of the revamped PM SVANidhi scheme?
(A) Free loans for all workers
(B) Enhanced loans, UPI linked credit cards, and capacity building support
(C) Free training for street vendors
(D) Financial aid for urban workers only
✅ Answer: (B) Enhanced loans, UPI linked credit cards, and capacity building support
What benefits will gig-workers receive under the Social Security Scheme for Online Platform Workers?
(A) Subsidized housing
(B) Free healthcare
(C) Identity cards, registration on e-Shram portal, and healthcare under PM Jan Arogya Yojna
(D) Tax exemptions
✅ Answer: (C) Identity cards, registration on e-Shram portal, and healthcare under PM Jan Arogya Yojna
What is the purpose of the 3-year pipeline of projects in PPP mode?
(A) To reduce government spending on infrastructure
(B) To improve public-private partnerships in infrastructure
(C) To encourage states to develop their own infrastructure
(D) To privatize all infrastructure projects
✅ Answer: (B) To improve public-private partnerships in infrastructure
How much is the outlay proposed for interest-free loans to states for capital expenditure?
(A) ₹50,000 crore
(B) ₹1 lakh crore
(C) ₹1.5 lakh crore
(D) ₹2 lakh crore
✅ Answer: (C) ₹1.5 lakh crore
What is the goal of the Asset Monetization Plan for 2025-30?
(A) To reduce government investment in infrastructure
(B) To generate ₹10 lakh crore for new projects
(C) To privatize all public assets
(D) To reduce the burden on state budgets
✅ Answer: (B) To generate ₹10 lakh crore for new projects
Until what year will the Jal Jeevan Mission be extended?
(A) 2025
(B) 2026
(C) 2028
(D) 2030
✅ Answer: (C) 2028
What is the total outlay proposed for the Urban Challenge Fund?
(A) ₹50,000 crore
(B) ₹1 lakh crore
(C) ₹1.5 lakh crore
(D) ₹2 lakh crore
✅ Answer: (B) ₹1 lakh crore
What is the Nuclear Energy Mission for Viksit Bharat aiming to achieve?
(A) To generate 50% of the country’s energy from nuclear power
(B) To develop 5 Small Modular Reactors (SMRs) by 2033
(C) To export nuclear energy technology
(D) To reduce the use of fossil fuels in power generation
✅ Answer: (B) To develop 5 Small Modular Reactors (SMRs) by 2033
What is the Maritime Development Fund’s corpus?
(A) ₹10,000 crore
(B) ₹15,000 crore
(C) ₹25,000 crore
(D) ₹50,000 crore
✅ Answer: (C) ₹25,000 crore
What is the modified UDAN scheme aimed at enhancing?
(A) Domestic air travel prices
(B) Regional connectivity to 120 new destinations
(C) International flight services
(D) Creating more airports in urban areas
✅ Answer: (B) Regional connectivity to 120 new destinations
Which state is to have a Greenfield airport and the expansion of Patna airport?
(A) Uttar Pradesh
(B) West Bengal
(C) Bihar
(D) Maharashtra
✅ Answer: (C) Bihar
What is the Western Koshi Canal Project in Mithilanchal aimed at?
(A) Irrigation development in Bihar
(B) Infrastructure for tourism in Bihar
(C) Financial support for improving urban transport
(D) Providing power to rural areas in Bihar
✅ Answer: (A) Irrigation development in Bihar
What is the purpose of the SWAMIH Fund 2?
(A) To support new startup businesses
(B) To expedite the completion of 1 lakh dwelling units
(C) To develop greenfield projects
(D) To provide loans to small-scale industries
✅ Answer: (B) To expedite the completion of 1 lakh dwelling units
What is the goal of the Tourism for Employment-led Growth scheme?
(A) To create new tourist attractions
(B) To develop the top 50 tourist destinations in India in partnership with states
(C) To attract foreign tourists
(D) To improve domestic tourism
✅ Answer: (B) To develop the top 50 tourist destinations in India in partnership with states
How much is allocated for the private sector-driven Research, Development, and Innovation initiative?
(A) ₹10,000 crore
(B) ₹15,000 crore
(C) ₹20,000 crore
(D) ₹25,000 crore
✅ Answer: (C) ₹20,000 crore
What is the purpose of the Deep Tech Fund of Funds?
(A) To promote environmental sustainability
(B) To support the next generation of startups
(C) To fund healthcare innovation
(D) To enhance manufacturing capabilities
✅ Answer: (B) To support the next generation of startups
How many fellowships are being offered under the PM Research Fellowship for technological research?
(A) 5,000 fellowships
(B) 7,500 fellowships
(C) 10,000 fellowships
(D) 12,000 fellowships
✅ Answer: (C) 10,000 fellowships
What is the purpose of the 2nd Gene Bank for Crops Germplasm?
(A) To store seeds for agricultural diversity
(B) To enhance food and nutritional security
(C) To support genetic research in plants
(D) To preserve rare crops
✅ Answer: (B) To enhance food and nutritional security
What is the National Geospatial Mission aimed at developing?
(A) Remote sensing technology
(B) Geospatial infrastructure and data
(C) Geographical mapping for tourism
(D) Agricultural research data
✅ Answer: (B) Geospatial infrastructure and data
What is the focus of the Gyan Bharatam Mission?
(A) To digitize educational content
(B) To promote scientific research in heritage conservation
(C) To survey, document, and conserve manuscript heritage
(D) To enhance library facilities across India
✅ Answer: (C) To survey, document, and conserve manuscript heritage
What is the primary goal of the Export Promotion Mission?
(A) To promote domestic trade
(B) To increase exports with sectoral and ministerial targets
(C) To enhance import regulations
(D) To improve international diplomatic relations
✅ Answer: (B) To increase exports with sectoral and ministerial targets
What is the purpose of BharatTradeNet (BTN)?
(A) To create a new currency system for trade
(B) To serve as a unified platform for international trade documentation and financing
(C) To provide global market insights
(D) To manage internal trade regulations
✅ Answer: (B) To serve as a unified platform for international trade documentation and financing
What is the National Framework for GCC aimed at promoting?
(A) Local manufacturing in urban areas
(B) Global Capability Centres in tier 2 cities
(C) Government regulations for international trade
(D) Investment in global businesses
✅ Answer: (B) Global Capability Centres in tier 2 cities
What is the FDI limit for the insurance sector set to be raised to?
(A) 50%
(B) 74%
(C) 100%
(D) 120%
✅ Answer: (C) 100%
What is the purpose of NaBFID’s Partial Credit Enhancement Facility?
(A) To support corporate bonds in the banking sector
(B) To enhance credit for infrastructure corporate bonds
(C) To manage corporate taxes
(D) To promote FDI in corporate bonds
✅ Answer: (B) To enhance credit for infrastructure corporate bonds
What is the ‘Grameen Credit Score’ framework designed for?
(A) To manage corporate loans
(B) To serve the credit needs of SHG members and rural areas
(C) To track corporate bonds
(D) To develop investment strategies for urban areas
✅ Answer: (B) To serve the credit needs of SHG members and rural areas
What is the focus of the High-Level Committee for Regulatory Reforms?
(A) Review of non-financial sector regulations, certifications, licenses, and permissions
(B) To manage investment laws
(C) To regulate pension funds
(D) To enhance insurance policies
✅ Answer: (A) Review of non-financial sector regulations, certifications, licenses, and permissions
When is the Investment Friendliness Index of States set to be launched?
(A) 2023
(B) 2024
(C) 2025
(D) 2026
✅ Answer: (C) 2025
What is the objective of the Jan Vishwas Bill 2.0?
(A) To enhance regulations in financial sectors
(B) To decriminalize provisions in various laws
(C) To create new financial products
(D) To increase FDI in insurance
✅ Answer: (B) To decriminalize provisions in various laws
What is the income limit under the new tax regime for which no personal income tax is payable?
(A) ₹10 lakh
(B) ₹12 lakh
(C) ₹12.75 lakh
(D) ₹15 lakh
✅ Answer: (B) ₹12 lakh
For salaried taxpayers, what is the income limit under the new tax regime, considering the standard deduction?
(A) ₹12 lakh
(B) ₹12.5 lakh
(C) ₹12.75 lakh
(D) ₹13 lakh
✅ Answer: (C) ₹12.75 lakh
What is the expected outcome of the new tax structure for the middle class?
(A) Higher taxes and reduced savings
(B) No change in taxes
(C) Substantial reduction in taxes, boosting consumption, savings, and investment
(D) Increased taxes on capital gains
✅ Answer: (C) Substantial reduction in taxes, boosting consumption, savings, and investment
What is the revenue forgone in direct taxes due to the new income-tax structure?
(A) ₹50,000 crore
(B) ₹75,000 crore
(C) ₹1 lakh crore
(D) ₹1.5 lakh crore
✅ Answer: (C) ₹1 lakh crore
What is the objective of the new Income-Tax Bill?
(A) To increase tax rates for high-income earners
(B) To make the tax structure more complex
(C) To simplify the text, making it clear and direct for taxpayers and tax administration
(D) To impose special taxes on capital gains
✅ Answer: (C) To simplify the text, making it clear and direct for taxpayers and tax administration.
What is the new limit for tax deduction at source (TDS) on interest for senior citizens under the rationalization measures?
(A) ₹50,000
(B) ₹75,000
(C) ₹1 lakh
(D) ₹1.5 lakh
✅ Answer: (C) ₹1 lakh
What is the new annual limit for TDS on rent under the rationalization measures?
(A) ₹2 lakh
(B) ₹2.40 lakh
(C) ₹4 lakh
(D) ₹6 lakh
✅ Answer: (D) ₹6 lakh
What is the new threshold for tax collection at source (TCS) on remittances under the RBI’s Liberalized Remittance Scheme (LRS)?
(A) ₹5 lakh
(B) ₹7 lakh
(C) ₹10 lakh
(D) ₹15 lakh
✅ Answer: (C) ₹10 lakh
In which case will the higher TDS deduction apply according to the new provisions?
(A) In cases where the PAN is provided
(B) In cases where the PAN is not provided
(C) For senior citizens only
(D) For rent-related payments
✅ Answer: (B) In cases where the PAN is not provided
What is being decriminalized in the TDS/TCS rationalization measures?
(A) Delay in filing tax returns
(B) Delay in payment of TDS
(C) Delay in payment of TCS up to the due date of filing the statement
(D) TDS-related penalties
✅ Answer: (C) Delay in payment of TCS up to the due date of filing the statement
The period of registration for small charitable trusts and institutions has been increased from __________ under the new provisions.
(A) 5 years to 7 years
(B) 5 years to 10 years
(C) 3 years to 5 years
(D) 10 years to 15 years
✅ Answer: (B) 5 years to 10 years
The benefit of claiming the annual value of self-occupied properties as nil has been extended to how many self-occupied properties?
(A) One
(B) Two
(C) Three
(D) No limit
✅ Answer: (B) Two
What is the purpose of the new scheme introduced for determining the arm’s length price of international transactions?
(A) To apply for tax refunds
(B) To determine the price for block periods of three years
(C) To evaluate domestic tax obligations
(D) To streamline GST processes
✅ Answer: (B) To determine the price for block periods of three years
What is the new exemption introduced for withdrawals from the National Savings Scheme (NSS)?
(A) Exemptions for withdrawals before 29th August 2024
(B) Exemptions for withdrawals on or after 29th August 2024
(C) Exemptions for senior citizens
(D) No exemptions
✅ Answer: (B) Exemptions for withdrawals on or after 29th August 2024
Which sector is being promoted through the extension of the benefits of the existing tonnage tax scheme for inland vessels?
(A) Aviation
(B) Inland water transport
(C) Electronics manufacturing
(D) Real estate
✅ Answer: (B) Inland water transport
What is being extended to Sovereign Wealth Funds and Pension Funds to promote funding for the infrastructure sector?
(A) A new tax regime
(B) A tax break on dividends
(C) Extension of the investment date until March 31, 2030
(D) Reduction in tax on long-term gains
✅ Answer: (C) Extension of the investment date until March 31, 2030
What is the primary change proposed in the rationalisation of the Customs Tariff Structure for Industrial Goods?
(A) Introduction of new tariff rates
(B) Removal of seven tariff rates
(C) Introduction of new excise duties
(D) Reduction in Social Welfare Surcharge
✅ Answer: (B) Removal of seven tariff rates
What is the purpose of the changes in the Customs Tariff Structure for Industrial Goods?
(A) To increase taxes on imports
(B) To apply more cess
(C) To simplify the tariff structure and reduce duty incidence
(D) To introduce new products
✅ Answer: (C) To simplify the tariff structure and reduce duty incidence
How much revenue in indirect taxes is expected to be forgone?
(A) ₹1,000 crore
(B) ₹2,600 crore
(C) ₹5,000 crore
(D) ₹10,000 crore
✅ Answer: (B) ₹2,600 crore
How many lifesaving drugs and medicines are fully exempted from Basic Customs Duty (BCD)?
(A) 36
(B) 40
(C) 50
(D) 25
✅ Answer: (A) 36
How many lifesaving medicines will attract a concessional customs duty of 5%?
(A) 4
(B) 6
(C) 10
(D) 12
✅ Answer: (B) 6
Which critical minerals are fully exempted from Basic Customs Duty (BCD)?
(A) Copper and Gold
(B) Cobalt powder and Lithium-ion battery waste
(C) Iron and Aluminum
(D) Coal and Natural Gas
✅ Answer: (B) Cobalt powder and Lithium-ion battery waste
The Basic Customs Duty (BCD) on which of the following electronic goods has been increased from 10% to 20%?
(A) Lithium Ion Batteries
(B) Interactive Flat Panel Display (IFPD)
(C) Mobile phone parts
(D) Telecommunication cables
✅ Answer: (B) Interactive Flat Panel Display (IFPD)
How many additional capital goods for EV battery manufacturing have been exempted from BCD?
(A) 25
(B) 28
(C) 35
(D) 40
✅ Answer: (C) 35
For how long has the exemption of BCD on raw materials, components, consumables, or parts for the manufacture of ships been extended?
(A) 5 years
(B) 10 years
(C) 15 years
(D) 20 years
✅ Answer: (B) 10 years
What is the BCD rate reduction on Carrier Grade ethernet switches?
(A) From 25% to 10%
(B) From 20% to 10%
(C) From 10% to 5%
(D) From 15% to 10%
✅ Answer: (B) From 20% to 10%
The export time period for handicraft goods has been extended from six months to __________.
(A) One year
(B) Two years
(C) 18 months
(D) Three years
✅ Answer: (A) One year
What is the new BCD on Wet Blue leather?
(A) 10%
(B) 15%
(C) Fully exempted
(D) 5%
✅ Answer: (C) Fully exempted
What is the BCD reduction on Frozen Fish Paste (Surimi) for manufacturing and export of its analogue products?
(A) 10% to 5%
(B) 30% to 5%
(C) 20% to 10%
(D) 15% to 5%
✅ Answer: (B) 30% to 5%
Domestic MROs for Railway Goods will now benefit similar to MROs in which other sectors?
(A) Automotive
(B) Aircraft and Ships
(C) Electronics
(D) Marine
✅ Answer: (B) Aircraft and Ships

Some Potential Questions & Answers With Explanations

Agriculture Budget 2025

What is the primary objective of the Prime Minister Dhan-Dhaanya Krishi Yojana?
a) To provide free fertilizers to farmers
b) To develop agri districts with low productivity and moderate crop intensity
c) To provide direct cash transfers to farmers
d) To promote organic farming across India
Answer: b) To develop agri districts with low productivity and moderate crop intensity

Explanation: The scheme aims to cover 100 districts with low agricultural productivity, moderate crop intensity, and below-average credit access to benefit 1.7 crore farmers.
Which crops are the focus of the “Mission for Aatmanirbharta in Pulses”?
a) Wheat, Rice, and Maize
b) Tur, Urad, and Masoor
c) Jowar, Bajra, and Ragi
d) Barley, Sorghum, and Oats
Answer: b) Tur, Urad, and Masoor

Explanation: The government has announced a six-year mission focusing on self-sufficiency in pulses, particularly Tur, Urad, and Masoor, with procurement support from NAFED and NCCF.
What is the key goal of the Comprehensive Programme for Vegetables & Fruits?
a) To provide free seeds to farmers
b) To increase fruit and vegetable exports
c) To promote production, processing, and efficient supply chains
d) To replace traditional crops with high-value horticultural crops
Answer: c) To promote production, processing, and efficient supply chains

Explanation: The programme aims to enhance production, ensure better market linkages, and improve price realization for farmers.
Where is the Makhana Board being established?
a) Uttar Pradesh
b) Bihar
c) Madhya Pradesh
d) West Bengal
Answer: b) Bihar

Explanation: The government is setting up a Makhana Board in Bihar to improve production, processing, and marketing of makhana, which is a significant crop in the state.
What is the main purpose of the National Mission on High-Yielding Seeds?
a) To promote genetically modified seeds
b) To strengthen seed research and develop high-yielding varieties
c) To distribute free seeds to small farmers
d) To ban hybrid seed usage in India
Answer: b) To strengthen seed research and develop high-yielding varieties

Explanation: The mission aims to enhance research on high-yielding seeds and ensure commercial availability of more than 100 improved seed varieties.
Which region is the government focusing on for sustainable fisheries development?
a) Western Ghats
b) Andaman & Nicobar and Lakshadweep Islands
c) Gangetic Plains
d) Sundarbans Delta
Answer: b) Andaman & Nicobar and Lakshadweep Islands

Explanation: The government is formulating a framework for sustainable fisheries development in these regions, focusing on their Exclusive Economic Zone and High Seas.
What is the duration of the Mission for Cotton Productivity?
a) 3 years
b) 5 years
c) 7 years
d) 10 years
Answer: b) 5 years

Explanation: The mission aims to enhance cotton productivity and promote extra-long staple cotton varieties over a five-year period.
How much has the loan limit been increased under the Modified Interest Subvention Scheme for KCC?
a) From ₹ 2 lakh to ₹ 4 lakh
b) From ₹ 3 lakh to ₹ 5 lakh
c) From ₹ 5 lakh to ₹ 7 lakh
d) From ₹ 6 lakh to ₹ 10 lakh
Answer: b) From ₹ 3 lakh to ₹ 5 lakh

Explanation: The loan limit under the Kisan Credit Card (KCC) scheme has been increased to ₹ 5 lakh to provide enhanced credit support to farmers.
Where is the new urea plant being set up?
a) Gujarat
b) Uttar Pradesh
c) Assam
d) Tamil Nadu
Answer: c) Assam

Explanation: A urea plant with an annual capacity of 12.7 lakh metric tons is being established at Namrup, Assam.

MSME’s Budget 2025

What change has been made in the classification criteria for MSMEs?
a) Investment and turnover limits enhanced to 1.5 and 1.8 times, respectively
b) Investment and turnover limits enhanced to 2.5 and 2 times, respectively
c) Investment and turnover limits reduced to 1.2 and 1.5 times, respectively
d) No change in investment and turnover limits
Answer: b) Investment and turnover limits enhanced to 2.5 and 2 times, respectively

Explanation: The government has revised the MSME classification criteria by increasing the investment and turnover limits to 2.5 times and 2 times, respectively.
What is the credit limit for Micro Enterprises under the customized Credit Card scheme?
a) ₹ 2 lakh
b) ₹ 5 lakh
c) ₹ 7.5 lakh
d) ₹ 10 lakh
Answer: b) ₹ 5 lakh

Explanation: The government has introduced a customized Credit Card scheme with a ₹ 5 lakh limit for micro enterprises registered on the Udyam portal.
How much contribution has been allocated to the new Fund of Funds for startups?
a) ₹ 5,000 crore
b) ₹ 7,500 crore
c) ₹ 10,000 crore
d) ₹ 15,000 crore
Answer: c) ₹ 10,000 crore

Explanation: A new Fund of Funds with an expanded scope and a fresh contribution of ₹ 10,000 crore has been announced to support startups.
Which category of first-time entrepreneurs is being targeted under the new scheme?
a) Rural artisans
b) Women, Scheduled Castes, and Scheduled Tribes
c) Engineers and IT professionals
d) Small traders and shopkeepers
Answer: b) Women, Scheduled Castes, and Scheduled Tribes

Explanation: The new scheme is designed to provide term loans of up to ₹ 2 crore to 5 lakh first-time entrepreneurs from women, Scheduled Castes (SC), and Scheduled Tribes (ST) over the next five years.
What is the expected employment generation under the Focus Product Scheme for Footwear & Leather Sectors?
a) 10 lakh persons
b) 15 lakh persons
c) 22 lakh persons
d) 30 lakh persons
Answer: c) 22 lakh persons

Explanation: The Focus Product Scheme aims to enhance productivity, quality, and competitiveness in the footwear and leather sector while generating employment for 22 lakh persons.
Which sector is the new scheme targeting to make India a global hub?
a) Textile and apparel
b) Toy manufacturing
c) Automobile industry
d) Renewable energy
Answer: b) Toy manufacturing

Explanation: The government has announced a scheme to promote high-quality, innovative, and sustainable toy production, aiming to establish India as a global hub for toys.
Where is the National Institute of Food Technology, Entrepreneurship, and Management being set up?
a) Uttar Pradesh
b) Bihar
c) Maharashtra
d) Karnataka
Answer: b) Bihar

Explanation: The institute is being established in Bihar to support food processing, entrepreneurship, and management in the food industry.
What is the objective of the National Manufacturing Mission?
a) To encourage large-scale privatization
b) To promote only large-scale industries
c) To support small, medium, and large industries under “Make in India”
d) To restrict foreign investment in Indian industries
Answer: c) To support small, medium, and large industries under “Make in India”

Explanation: The mission aims to boost manufacturing across all industrial segments (small, medium, and large) as part of the “Make in India” initiative.

Investing in People Budget 2025

What is the key feature of Saksham Anganwadi and Poshan 2.0?
a) Establishment of new Anganwadi centers
b) Enhancement of cost norms for nutritional support
c) Free education for Anganwadi children
d) Increasing salaries of Anganwadi workers
Answer: b) Enhancement of cost norms for nutritional support

Explanation: The scheme aims to enhance the cost norms for nutritional support provided through Anganwadi centers.
How many Atal Tinkering Labs will be set up in Government schools over the next 5 years?
a) 10,000
b) 25,000
c) 50,000
d) 1,00,000
Answer: c) 50,000

Explanation: The government plans to establish 50,000 Atal Tinkering Labs in government schools to promote innovation and technology among students.
Under which project will broadband connectivity be provided to Government secondary schools and PHCs in rural areas?
a) Digital India Initiative
b) Bharatnet Project
c) National Broadband Mission
d) Rural Connectivity Scheme
Answer: b) Bharatnet Project

Explanation: The Bharatnet Project aims to provide broadband connectivity to government secondary schools and primary health centers (PHCs) in rural areas.
What is the objective of the Bharatiya Bhasha Pustak Scheme?
a) Distribution of printed books in government schools
b) Encouraging students to learn Sanskrit
c) Providing Indian language books in digital form for school and higher education
d) Promoting English language education in rural schools
Answer: c) Providing Indian language books in digital form for school and higher education

Explanation: This scheme focuses on making Indian language books available in digital format to support school and higher education.
How many National Centres of Excellence for Skilling are planned to be set up?
a) 3
b) 5
c) 7
d) 10
Answer: b) 5

Explanation: The government is setting up 5 National Centres of Excellence for Skilling to equip youth with global expertise for manufacturing.
Which educational institutions will see an expansion in capacity under the new initiative?
a) Central Universities
b) IITs started after 2014
c) NITs and AIIMS
d) State Engineering Colleges
Answer: b) IITs started after 2014

Explanation: Additional infrastructure is being created in the five IITs established after 2014 to accommodate 6,500 more students.
What is the financial outlay for the Centre of Excellence in Artificial Intelligence for education?
a) ₹ 200 crore
b) ₹ 300 crore
c) ₹ 500 crore
d) ₹ 1000 crore
Answer: c) ₹ 500 crore

Explanation: A Centre of Excellence in Artificial Intelligence for education is being set up with a budget of ₹ 500 crore.
How many additional medical seats will be added in the next year?
a) 5,000
b) 7,500
c) 10,000
d) 12,000
Answer: c) 10,000

Explanation: The government plans to add 10,000 additional medical seats next year and a total of 75,000 seats in the next five years.
How many Day Care Cancer Centres will be established in district hospitals by 2025-26?
a) 100
b) 150
c) 200
d) 250
Answer: c) 200

Explanation: The government aims to set up 200 Day Care Cancer Centres in district hospitals by 2025-26.
What enhancement is planned for the PM SVANidhi scheme?
a) Interest-free loans for street vendors
b) UPI-linked credit cards with ₹ 30,000 limit
c) Free insurance for small business owners
d) Providing free digital payment devices
Answer: b) UPI-linked credit cards with ₹ 30,000 limit

Explanation: The PM SVANidhi scheme is being revamped to include enhanced loans from banks and UPI-linked credit cards with a ₹ 30,000 limit.
Which group will benefit from the Social Security Scheme for Online Platform Workers?
a) Government employees
b) IT professionals
c) Gig-workers
d) Farmers
Answer: c) Gig-workers

Explanation: The scheme provides identity cards, registration on the e-Shram portal, and healthcare under PM Jan Arogya Yojana for gig-workers.

Investing in the Economy Budget 2025

What is the proposed outlay for the 50-year interest-free loans to states for capital expenditure and reforms?
a) ₹ 50,000 crore
b) ₹ 1 lakh crore
c) ₹ 1.5 lakh crore
d) ₹ 2 lakh crore
Answer: c) ₹ 1.5 lakh crore

Explanation: The government has proposed an outlay of ₹ 1.5 lakh crore for 50-year interest-free loans to states for capital expenditure and incentives for reforms.
What is the total capital planned to be ploughed back into new projects under the Asset Monetization Plan 2025-30?
a) ₹ 5 lakh crore
b) ₹ 10 lakh crore
c) ₹ 15 lakh crore
d) ₹ 20 lakh crore
Answer: b) ₹ 10 lakh crore

Explanation: The second phase of the Asset Monetization Plan (2025-30) aims to reinvest ₹ 10 lakh crore into new infrastructure projects.
Until which year has the Jal Jeevan Mission been extended?
a) 2026
b) 2027
c) 2028
d) 2030
Answer: c) 2028

Explanation: The Jal Jeevan Mission has been extended until 2028 with an enhanced total outlay.
What is the total corpus of the newly announced Urban Challenge Fund?
a) ₹ 50,000 crore
b) ₹ 75,000 crore
c) ₹ 1 lakh crore
d) ₹ 2 lakh crore
Answer: c) ₹ 1 lakh crore

Explanation: The Urban Challenge Fund, worth ₹ 1 lakh crore, is aimed at enhancing urban infrastructure, growth hubs, and sanitation.
How many Small Modular Reactors (SMRs) will be operational by 2033 under the Nuclear Energy Mission?
a) 3
b) 5
c) 7
d) 10
Answer: b) 5

Explanation: The government aims to have 5 indigenously developed Small Modular Reactors (SMRs) operational by 2033.
What is the total planned outlay for the Nuclear Energy Mission focused on SMRs?
a) ₹ 10,000 crore
b) ₹ 15,000 crore
c) ₹ 20,000 crore
d) ₹ 25,000 crore
Answer: c) ₹ 20,000 crore

Explanation: A ₹ 20,000 crore outlay has been set for research and development of Small Modular Reactors (SMRs).
What is the corpus of the Maritime Development Fund?
a) ₹ 15,000 crore
b) ₹ 20,000 crore
c) ₹ 25,000 crore
d) ₹ 30,000 crore
Answer: c) ₹ 25,000 crore

Explanation: The Maritime Development Fund will have a total corpus of ₹ 25,000 crore, with up to 49% contributed by the government.
Under the revamped UDAN scheme, how many new destinations will be connected?
a) 50
b) 80
c) 100
d) 120
Answer: d) 120

Explanation: The modified UDAN scheme will enhance regional connectivity by adding 120 new destinations.
Which state will get a new Greenfield airport and expansion of Patna airport?
a) Uttar Pradesh
b) Bihar
c) Madhya Pradesh
d) Jharkhand
Answer: b) Bihar

Explanation: A Greenfield airport in Bihar has been announced, along with the expansion of Patna airport and a brownfield airport at Bihta.
Which project in Bihar will receive financial support under the new budget?
a) Ganga Barrage Project
b) Kosi Barrage Project
c) Western Koshi Canal Project
d) Eastern Gandak Canal Project
Answer: c) Western Koshi Canal Project

Explanation: The Western Koshi Canal ERM Project in Bihar will receive financial support from the government.
What is the aim of the newly announced SWAMIH Fund 2?
a) Development of housing for slum dwellers
b) Rapid completion of 1 lakh dwelling units
c) Establishment of urban townships
d) Construction of low-cost rental housing
Answer: b) Rapid completion of 1 lakh dwelling units

Explanation: SWAMIH Fund 2, worth ₹ 15,000 crore, aims to ensure the quick completion of 1 lakh housing units.
How many top tourist sites will be developed under the tourism initiative for employment-led growth?
a) 25
b) 50
c) 75
d) 100
Answer: b) 50

Explanation: The government plans to develop the top 50 tourist destinations in the country in partnership with states.

Investing in Innovation Budget 2025

What is the total allocation for the private sector-driven Research, Development, and Innovation initiative?
a) ₹ 10,000 crore
b) ₹ 15,000 crore
c) ₹ 20,000 crore
d) ₹ 25,000 crore
Answer: c) ₹ 20,000 crore

Explanation: The government has allocated ₹ 20,000 crore for the private sector-driven Research, Development, and Innovation initiative announced in the July Budget.
Which fund is being explored to support next-generation startups in deep technology?
a) Innovation Catalyst Fund
b) Deep Tech Fund of Funds
c) Startup India Growth Fund
d) Tech-Driven Enterprise Fund
Answer: b) Deep Tech Fund of Funds

Explanation: The Deep Tech Fund of Funds is being explored to support next-generation deep tech startups.
How many fellowships will be awarded under the PM Research Fellowship program?
a) 5,000
b) 7,500
c) 10,000
d) 15,000
Answer: c) 10,000

Explanation: The PM Research Fellowship will offer 10,000 fellowships for technological research in IITs and IISc with enhanced financial support.
What is the purpose of the second Gene Bank being established?
a) Conservation of endangered animal species
b) Preservation of human genetic material
c) Storage of 10 lakh germplasm lines for food security
d) Development of genetically modified crops
Answer: c) Storage of 10 lakh germplasm lines for food security

Explanation: The second Gene Bank is being set up to store 10 lakh germplasm lines to ensure future food and nutritional security.
What is the objective of the newly announced National Geospatial Mission?
a) Mapping historical sites in India
b) Establishing geospatial data infrastructure
c) Enhancing artificial intelligence in navigation
d) Providing GIS services for smart cities
Answer: b) Establishing geospatial data infrastructure

Explanation: The National Geospatial Mission aims to develop foundational geospatial infrastructure and data.
Which mission aims to document and conserve India’s manuscript heritage?
a) Gyan Deepika Mission
b) Bharatiya Manuscript Initiative
c) Gyan Bharatam Mission
d) Vedic Heritage Mission
Answer: c) Gyan Bharatam Mission

Explanation: The Gyan Bharatam Mission is focused on surveying, documenting, and conserving India’s manuscript heritage, covering over 1 crore manuscripts.
Which institutions will play a key role in the Gyan Bharatam Mission?
a) IITs and IISc
b) Academic institutions, museums, and libraries
c) Agricultural universities and biotech firms
d) Space research organizations
Answer: b) Academic institutions, museums, and libraries

Explanation: The Gyan Bharatam Mission will involve academic institutions, museums, libraries, and private collectors in documenting and conserving manuscripts.

Exports Budget 2025

Which ministries will jointly drive the Export Promotion Mission?
a) Ministries of External Affairs, Finance, and MSME
b) Ministries of Commerce, MSME, and Finance
c) Ministries of Industry, Commerce, and IT
d) Ministries of Trade, Rural Development, and MSME
Answer: b) Ministries of Commerce, MSME, and Finance

Explanation: The Export Promotion Mission will be driven jointly by the Ministries of Commerce, MSME, and Finance with sectoral and ministerial targets.
What is the purpose of ‘BharatTradeNet’ (BTN)?
a) To support MSMEs in local trade
b) To create a digital platform for domestic market transactions
c) To unify trade documentation and financing solutions for international trade
d) To provide tax incentives for exporters
Answer: c) To unify trade documentation and financing solutions for international trade

Explanation: BharatTradeNet (BTN) is being set up as a unified platform for trade documentation and financing solutions in international trade.
Which initiative aims to provide a structured approach for promoting Global Capability Centres (GCCs) in tier-2 cities?
a) Startup India Initiative
b) BharatTradeNet Policy
c) National Framework for GCC
d) Atmanirbhar Bharat Mission
Answer: c) National Framework for GCC

Explanation: A National Framework for GCC is being formulated as guidance for states to promote Global Capability Centres in emerging tier-2 cities.
What is the primary goal of the Export Promotion Mission?
a) Increase domestic trade among states
b) Boost international exports with ministerial and sectoral targets
c) Promote tourism for employment-led growth
d) Develop new agricultural policies for export
Answer: b) Boost international exports with ministerial and sectoral targets

Explanation: The Export Promotion Mission aims to enhance exports through coordinated efforts of the Ministries of Commerce, MSME, and Finance.
Which platform is being introduced to streamline trade documentation and financing solutions?
a) BharatNetTrade
b) National Trade Facilitation Portal
c) BharatTradeNet (BTN)
d) Digital India Export Hub
Answer: c) BharatTradeNet (BTN)

Explanation: BharatTradeNet (BTN) will be a unified platform for managing trade documentation and financing solutions in international trade.

Reforms as Fuel : Financial sector Budget 2025

What is the new FDI limit for the insurance sector in India?
a) 49%
b) 74%
c) 90%
d) 100%
Answer: d) 100%

Explanation: The FDI limit for the insurance sector has been raised from 74% to 100% for companies that invest the entire premium in India.
Which institution will set up a ‘Partial Credit Enhancement Facility’ for corporate bonds in infrastructure?
a) Reserve Bank of India (RBI)
b) National Bank for Financing Infrastructure and Development (NaBFID)
c) State Bank of India (SBI)
d) Securities and Exchange Board of India (SEBI)
Answer: b) National Bank for Financing Infrastructure and Development (NaBFID)

Explanation: NaBFID will set up a Partial Credit Enhancement Facility to support corporate bonds in the infrastructure sector.
What is the objective of the ‘Grameen Credit Score’ framework?
a) To assess the performance of rural credit societies
b) To evaluate the loan repayment capacity of SHG members and rural borrowers
c) To regulate microfinance institutions in rural areas
d) To monitor agricultural loan disbursement
Answer: b) To evaluate the loan repayment capacity of SHG members and rural borrowers

Explanation: Public Sector Banks will develop the ‘Grameen Credit Score’ framework to serve the credit needs of SHG members and rural populations.
What is the purpose of the High-Level Committee for Regulatory Reforms?
a) To introduce stricter financial regulations
b) To review and simplify non-financial sector regulations, licenses, and permissions
c) To regulate banking operations in India
d) To improve the efficiency of SEBI and RBI policies
Answer: b) To review and simplify non-financial sector regulations, licenses, and permissions

Explanation: The High-Level Committee for Regulatory Reforms aims to review and reform non-financial sector regulations, certifications, and permissions.
Which initiative aims to rank states based on their investment attractiveness?
a) Ease of Doing Business Index
b) National Industrial Development Plan
c) Investment Friendliness Index of States
d) Business Reforms Action Plan
Answer: c) Investment Friendliness Index of States

Explanation: The Investment Friendliness Index of States will be launched in 2025 to promote competitive cooperative federalism.
What is the goal of the Jan Vishwas Bill 2.0?
a) To increase penalties for financial frauds
b) To decriminalize more than 100 provisions in various laws
c) To introduce stricter compliance for businesses
d) To create new investment policies for start-ups
Answer: b) To decriminalize more than 100 provisions in various laws

Explanation: The Jan Vishwas Bill 2.0 aims to decriminalize over 100 provisions across various laws to ease compliance.

Income Tax Reforms Budget 2025

Under the new tax regime, what is the income threshold up to which no personal income tax is payable?
a) ₹10 lakh
b) ₹11 lakh
c) ₹12 lakh
d) ₹15 lakh
Answer: c) ₹12 lakh

Explanation: No personal income tax is payable for incomes up to ₹12 lakh under the new tax regime, except for special rate income like capital gains.
What is the tax-free income limit for salaried taxpayers under the new regime, including the standard deduction?
a) ₹12 lakh
b) ₹12.5 lakh
c) ₹12.75 lakh
d) ₹13 lakh
Answer: c) ₹12.75 lakh

Explanation: Salaried taxpayers will have a tax-free income limit of ₹12.75 lakh due to the inclusion of the ₹75,000 standard deduction.
What is the primary goal of the new tax structure?
a) To increase tax revenue collection
b) To reduce litigation and provide tax certainty
c) To introduce new capital gains tax slabs
d) To impose additional wealth tax
Answer: b) To reduce litigation and provide tax certainty

Explanation: The new Income-Tax Bill aims to simplify tax laws, making them clear and direct for better compliance and reduced disputes.
How much direct tax revenue will the government forgo due to the new tax structure?
a) ₹50,000 crore
b) ₹75,000 crore
c) ₹1 lakh crore
d) ₹1.5 lakh crore
Answer: c) ₹1 lakh crore

Explanation: The government will forgo about ₹1 lakh crore in direct tax revenue due to the new income tax reforms.
Which of the following is not considered under the tax-free income of ₹12 lakh?
a) Salary income
b) Rental income
c) Interest income from savings
d) Capital gains
Answer: d) Capital gains

Explanation: Special rate income such as capital gains is not included under the ₹12 lakh tax-free limit in the new regime.

TDS/TCS Budget 2025

What is the new TDS exemption limit for senior citizens on interest income?
a) ₹50,000
b) ₹75,000
c) ₹1 lakh
d) ₹1.5 lakh
Answer: c) ₹1 lakh

Explanation: The limit for tax deduction on interest for senior citizens has been doubled from ₹50,000 to ₹1 lakh.
What is the revised annual limit for TDS on rent?
a) ₹3 lakh
b) ₹4.5 lakh
c) ₹6 lakh
d) ₹7.5 lakh
Answer: c) ₹6 lakh

Explanation: The annual threshold for TDS deduction on rent has been increased from ₹2.40 lakh to ₹6 lakh.
What is the new threshold for Tax Collected at Source (TCS) on remittances under RBI’s Liberalized Remittance Scheme (LRS)?
a) ₹7 lakh
b) ₹8 lakh
c) ₹9 lakh
d) ₹10 lakh
Answer: d) ₹10 lakh

Explanation: The threshold for TCS on remittances under LRS has been increased from ₹7 lakh to ₹10 lakh.
Under the new tax reforms, in which case will the higher TDS deduction be applicable?
a) All taxpayers
b) Only in non-PAN cases
c) Only for corporate taxpayers
d) Only for senior citizens
Answer: b) Only in non-PAN cases

Explanation: Higher TDS deduction will apply only in cases where the taxpayer does not have a PAN.
What is the new provision regarding the delay in payment of TCS?
a) Immediate penalties will be imposed
b) The case will be decriminalized if paid by the due date of filing the statement
c) A higher interest rate will be charged
d) No action will be taken in any case
Answer: b) The case will be decriminalized if paid by the due date of filing the statement

Explanation: The government has announced decriminalization for cases where TCS payments are delayed but paid by the due date of filing the statement.

Other Tax MCQs Budget 2025

What is the new registration period for small charitable trusts and institutions under the compliance burden reduction initiative?
a) 5 years
b) 7 years
c) 10 years
d) 12 years
Answer: c) 10 years

Explanation: The registration period for small charitable trusts and institutions has been increased from 5 years to 10 years.
Which of the following is NOT a part of the Ease of Doing Business reforms?
a) Safe harbour rules expansion
b) Scheme for arm’s length price determination for a block period of 3 years
c) Introduction of a voluntary tax scheme for MSMEs
d) Exemption of withdrawals from National Savings Scheme (NSS)
Answer: c) Introduction of a voluntary tax scheme for MSMEs

Explanation: The reforms include safe harbour rules, NSS withdrawals, and arm’s length price determination, but no voluntary tax scheme for MSMEs has been introduced.
What is the new deadline for incorporating startups to avail tax benefits?
a) April 1, 2025
b) April 1, 2027
c) April 1, 2029
d) April 1, 2030
Answer: d) April 1, 2030

Explanation: The incorporation period for startups to avail tax benefits has been extended by 5 years to April 1, 2030.
What benefit has been extended to inland vessels under the tonnage tax scheme?
a) Increased tax rates
b) No tax benefits
c) Inclusion under the Indian Vessels Act, 2021
d) Mandatory registration with GST
Answer: c) Inclusion under the Indian Vessels Act, 2021

Explanation: Inland vessels registered under the Indian Vessels Act, 2021, will now get benefits under the existing tonnage tax scheme.
How many tariff rates were removed in the Union Budget 2025-26?
a) 5
b) 6
c) 7
d) 8
Answer: c) 7

Explanation: Seven more tariff rates were removed in the 2025-26 budget, in addition to the seven removed in the previous budget.
Which of the following goods are fully exempted from Basic Customs Duty (BCD)?
a) Lithium-ion batteries
b) 36 lifesaving drugs
c) Knitted fabrics
d) Carrier-grade Ethernet switches
Answer: b) 36 lifesaving drugs

Explanation: 36 lifesaving drugs and medicines have been fully exempted from BCD.
Which sector received a BCD reduction from 20% to 10%?
a) Electronic goods
b) Telecommunication
c) Textile industry
d) Pharmaceuticals
Answer: b) Telecommunication

Explanation: BCD on carrier-grade Ethernet switches in the telecom sector has been reduced from 20% to 10%
For how long is the exemption on BCD for ship manufacturing materials extended?
a) 5 years
b) 7 years
c) 10 years
d) 12 years
Answer: c) 10 years

Explanation: The exemption on raw materials, components, and consumables for ship manufacturing has been extended for another 10 years.
Which industry benefited from the exemption of BCD on wet blue leather?
a) Marine products
b) Electronics
c) Handicrafts
d) Leather industry
Answer: d) Leather industry

Explanation: The BCD on wet blue leather has been fully exempted to support the leather industry.
How much revenue will be forgone due to indirect tax changes?
a) ₹1,500 crore
b) ₹2,000 crore
c) ₹2,600 crore
d) ₹3,200 crore
Answer: c) ₹2,600 crore

Explanation: The Union Budget 2025-26 estimates a revenue loss of ₹2,600 crore in indirect taxes due to exemptions and duty reductions.