Union Budget 2020 Questions With Answers

Expected Budget 2020-21 Questions with answers for Bank, SSC, and Railway Exams. Download  PDF of Important GK Questions based on Union Budget 2020. As we all know that Finance Minister Ms Nirmala Sitharaman presented the Union Budget 2020-21 in parliament on 01st February 2020. This is her first full time budget presentation.If you are preparing for Banking & Insurance, SSC, Railways and other competitive exams, you will come across a section on the Current Affairs and Questions asked in every competitive exams in General Awareness section from Union Budget 2020-21 So, here we are with the Union Budget 2020 Questions With Answers for your daily practice.

To help you in your upcoming exam preparation we have brought you 100+ Most Expected Union Budget 2020 Questions With Answers. Important Union Budget Questions are very important for the upcoming competitive exams and knowing all the Union Budget 2020 Questions With Answers is a must, as it will help you in scoring good marks in General Awareness section of any examination.

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Expected Budget 2020-21 Questions With Detailed Answers | Set- 3

Although the number of questions related to Union Budget 2020-21  asked in the exams are relatively less but it is advisable that every aspirant should be aware Important GK Questions based on Union Budget 2020.

1. Which of the following ministry will launch Krishi UDAAN Yojana?

  1. ministry of foreign affairs
  2. ministry of civil aviation
  3. ministry of agriculture
  4. ministry of corporate affairs
  5. ministry of environment forest and climate change

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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,”.

2. In Budget for FY 2020-21, Insurance cover for bank deposits will be increased to —– from Rs. 1 lakh.

  1. 10 lakh
  2. 5 lakh
  3. 7 Lakh
  4. 4 Lakh
  5. 2 Lakh

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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.

3. Name the independent body which will set up for the recruitment to non gazetted posts through computer-based online process.

  1. Union Recruitment Agency
  2. National Recruitment Agency
  3. All India Recruitment Agency
  4. National Staff Selection Agency
  5. None of the above

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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.

4. Which of the following tax has been abolished In Budget for FY 2020-21?

  1. Tax on Petroleum Products
  2. Dividend Distribution Tax
  3. Corporate Tax
  4. Tax on Gold
  5. None of the these

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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.

5. In Union Budget 2020-21, The Union Government is set to launch ‘Vivaad Se Vishwas’ Scheme. What is the main agenda of the scheme?

  1. Reduction of tax litigation
  2. GST Coordination between Center-State
  3. Recovery of NPAs
  4. Loan Waiver provision for prospective farmers
  5. None of the these
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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.

6. Which document will be issued instantly based on AADHAR details?

  1. MNREGA card
  2. Passport
  3. PAN Card
  4. Driving Ration
  5. None of the these

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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.

7. Which of the following is not a component of Aspirational India in Budget 2020-21?

  1. Water
  2. Irrigation
  3. Agriculture
  4. Education & Skills
  5. Renewable energy

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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

8. In Budget 2020-21, what is the Corporate Tax Rate for new domestic companies in manufacturing and power sector?

A 25%

B 15%

C 10%

D 12%

E None of the above

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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.

9. What is the new income tax percentage for Income Bracket 12.5-15 lakh?

A 30%

B 25%

C 20%

D 15%

E None of the above.

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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%.

10. Which campaign hs been launched by the Union Government to tackle lifestyle disorders and non-communicable diseases (NCDs)?

A. FIT India movement

B. TB Harega Desh Jeetega

C. Jan Aushadhi Kendra Scheme

D. National Health Mission

E. Environment and Climate Change

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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.

100+ Expected GK Questions Based on Budget 2020

Set – 1 Set – 2 Set – 3
Set – 4 Set – 5 Set – 6
Set – 7 Set – 8 Set – 9
Set – 10 100+ Expected GK Questions PDF Based on Budget 2020 – Will Update Soon….

Union Budget 2020-21 – Important Links

Union Budget 2020 – Download Budget 2020 PDF
केन्द्रीय बजट 2020 की मुख्य विशेषताएँ 100 Important Highlights of Budget 2020
Union Budget 2020 Live Updates from Parliament House Key Highlights of Economic Survey 2019-20 : Download Volume I and II PDF and Info-graphics

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