Union Budget 2020-21 Questions With Answers For Bank, SSC, and Railway Exams | Set- 3

Correct Answer – B. ministry of civil aviation

Explanation: Finance Minister Nirmala Sitharaman on Saturday said the Aviation Ministry will launch the Krishi Udan scheme to assist farmers in transporting agricultural products so that it improves their “value realisation”. “Krishi Udan will be launched by the Ministry of Civil Aviation on international and national routes. This will immensely help improve value realisation (on agricultural products), especially in the north-east and tribal districts,”.

Correct Answer – B. 5 lakh

Explanation: Insurance cover on bank deposits has been increased to Rs 5 lakh from Rs 1 lakh effective Tuesday, the Reserve Bank of India (RBI) said in a statement. Emphasising on capacity building and empowerment of marginalised sections of the society while protecting the wealth creators, Sitharaman said this Budget will boost income and purchasing power of the people. Finance minister also raised the bank depositors insurance coverage to Rs 5 lakh from Rs 1 lakh. The cover is provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the RBI.

Correct Answer – B. National Recruitment Agency

Explanation: With an aim of creating more employment, Finance Minister, Nirmala Sitharaman, in her Budget 2020 speech said that the government will set up a National Recruitment Agency (NRA) for all Computer-Based Examinations for recruitment to non-gazetted government and public sector banks posts. Union finance minister Nirmala Sitharaman on Saturday announced that a recruitment agency will be set up for all computer based examinations for the recruitment in government and public sector banks.

Correct Answer – B. Dividend Distribution Tax

Explanation: Finance Minister Nirmala Sitharaman announced abolition of dividend distribution tax (DDT). The minister said revenue foregone due to DDT removal will be Rs 25,000 crore. The finance minister said dividends will now be taxed in the hands of recipients. Initially, she was very happy with over 10 per cent annual dividend payable monthly as there was no Dividend Distribution Tax (DDT) on dividend distributed by equity MFs.

Correct Answer – A. Reduction of tax litigation

Explanation: The Union Budget has proposed ‘Vivad Se Vishwas’ Scheme (No dispute but trust) which aims at reducing litigations in the direct taxes payments. While presenting the Union Budget 2020-21 in Parliament today, the Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman said, “Taxpayers in whose cases appeals are pending at any level can benefit from this scheme.” Mody further said that the basic thought process behind the taxation proposal in Budget was to promote voluntary compliance, facilitate compliant taxpayer and to go after delinquent ones. Also the policy is to phase out incentives and exemption and resolve disputes and reduce litigation.

Correct Answer – C. PAN Card

Explanation: The Budget 2020-21 has proposed to launch a system under which Permanent Account Number shall be instantly allotted online on the basis of Aadhaar. The government has made PAN-Aadhaar linkage mandatory and over 30.75 crore PANs have already been linked to Aadhaar.

Correct Answer – E. Renewable energy

Explanation: Aspirational India: Better standards of living with access to health, education and better jobs for all sections of the society. Three components of Aspirational India-

• Agriculture, Irrigation, and Rural Development
• Wellness, Water, and Sanitation
• Education and Skills

Correct Answer – B 15%

Explanation: Installation of prepaid meters over the next three years will help ailing power distribution companies cut losses substantially while reduction of corporate tax for new power generation companies will reduce power tariffs for consumers. “The reduction in taxes for new companies in the generation sector will prompt existing power companies to float special purpose vehicles that would be eligible for reduced tax at the rate of 15% against the existing 30% rate. They will also be able to bid lower tariffs in auctions thus reducing power tariffs for consumers and for fixed tariffs their profits would be higher,” said Sabyasachi Majumdar, group head at ICRA.

Correct Answer – B 25%

Explanation: Union Budget 2020 has proposed a new tax structure by slashing income tax rates and rejigging the income tax slabs to reduce total tax liability by individuals. As proposed in the new tax regime, 70 tax exemptions will be removed but the income between Rs 5 lakh and Rs 7.5 lakh will be taxed at 10% down from current 20%, income between Rs 7.5 lakh and Rs 10 lakh will be taxed at 15% down from current 20%, and income between Rs 10 lakh and Rs 12.5 lakh will be taxed at 20% down from current 30%. Income between Rs 12.5 lakh and Rs 15 lakh will be taxed at 25% down from current 30%. Incomes above Rs 15 lakh in a financial year will continue to be taxed at 30%.

Correct Answer – E. Environment and Climate Change

Explanation: The Fit India movement also found a mention in the longest-ever Budget speech.  Union Finance Minister Nirmala Sitharaman in her second Budget speech – that lasted for around 160 minutes – allocated Rs 69,000 crore, in addition to the Rs 6400 crore for the Pradhan Mantri Jan Aushadhi Yojna, for the healthcare sector.