2001 General Studies, all questions

UPSC Prelims 2001 · General Studies

Question 80: Economy and Social Development

The Union Budget, 2000 awarded a Tax Holiday for the North-eastern Region to promote industrialisation for

a5 years
b7 years
c9 years
d10 years

AnswerThe answer is (d).

The Union Budget of 2000-01 awarded a 10-year tax holiday to new industrial undertakings in the North-eastern Region, to attract investment to a region that is remote and has weak infrastructure. A tax holiday exempts the profits of a new unit from income tax for a fixed number of years. Remember ten years for the North-east.

Why each option is right or wrong
  • (a) Five years is shorter than the holiday given.
  • (b) Seven years is shorter than the holiday given.
  • (c) Nine years is not the period announced.
  • (d) Right: ten years.

Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2001, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.