1997 General Studies, all questions

UPSC Prelims 1997 · General Studies

Question 103: Economy and Social Development

The Minimum Alternative Tax (MAT) was introduced in the Budget of the Government of India for the year

a1991-92
b1992-93
c1995-96
d1996-97

AnswerThe answer is (d).

The Minimum Alternative Tax, a minimum tax on companies that show large book profits but pay little or no tax, was introduced in the 1996-97 Budget. Its purpose was to make 'zero-tax' companies pay something. Remember MAT with the 1996-97 Budget.

Why each option is right or wrong
  • (a) 1991-92 was the reform budget year, but not when MAT was introduced.
  • (b) 1992-93 is not the year MAT was introduced.
  • (c) 1995-96 is a year before MAT was introduced.
  • (d) Right: the 1996-97 Budget.

Explanation: written by UPSC Grade, not by UPSC.

Source: UPSC, Civil Services (Preliminary) Examination 1997, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.