UPSC Prelims 2004 · General Studies

Question 36: Economy and Social Development

Which of the following is not a recommendation of the task force on direct taxes under the chairmanship of Dr. Vijay L. Kelkar in the year 2002?

aAbolition of Wealth Tax

bIncrease in the exemption limit of personal income to Rs. 1.20 lakh for widows

cElimination of standard deduction

dExemption from tax on dividends and capital gains from the listed equity

AnswerThe answer is (b).

Three of the four were in the Kelkar Task Force's package on direct taxes (2002): abolition of the wealth tax, removal of the standard deduction, and tax exemption for dividends and capital gains on listed equity. The special Rs 1.20 lakh exemption limit for widows was not among its recommendations, which is why (b) is the answer.

Why each option is right or wrong

(a) Was among the Task Force's recommendations.
(b) Correct: this was not among the Task Force's recommendations.
(c) Was among the Task Force's recommendations.
(d) Was among the Task Force's recommendations.

Explanation: written by UPSC Grade, not by UPSC.

Practise this paper timedPrevious question Next question

Source: UPSC, Civil Services (Preliminary) Examination 2004, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.