UPSC Prelims Practice Questions — Unenviable choice

Q1. Following the GST rate rationalisation announced by the GST Council and effective from 22 September 2025, the number of items placed under the highest tax slab was reduced from 227 to how many?

  • A. 3
  • B. 35
  • C. 95
  • D. 152

Q2. Within the Government of India, the administration of direct tax policy through which the Rs. 12 lakh zero-liability rebate (Budget 2025-26) is operationalised is the responsibility of which one of the following?

  • A. Central Board of Direct Taxes under the Department of Revenue, Ministry of Finance
  • B. Department of Economic Affairs, Ministry of Finance
  • C. Central Board of Indirect Taxes and Customs under the Department of Revenue, Ministry of Finance
  • D. Department of Expenditure, Ministry of Finance

Q3. With reference to the Union Budget 2025-26 and connected fiscal measures of 2025, which of the following are correctly identified as announcements of that year?

  1. Raising the zero-income-tax liability threshold under the new regime to Rs. 12 lakh per annum.
  2. Central Capital Expenditure Budget Estimate of about Rs. 11.21 lakh crore.
  3. Fiscal deficit target of 4.4% of GDP.
  4. Reintroduction of the Wealth Tax abolished earlier.
  • A. 1 and 3 only
  • B. 1, 2 and 3 only
  • C. 2 and 4 only
  • D. 1, 2, 3 and 4

Q4. With reference to the fiscal measures effective in 2025-26, which one of the following is NOT correctly identified?

  1. A simplified two-principal-slab GST structure of 5% and 18% effective from 22 September 2025.
  2. Zero income-tax liability up to Rs. 12 lakh of annual income under the new regime.
  3. Central Capital Expenditure outlay of about Rs. 11.21 lakh crore for FY2025-26.
  4. Mandatory replacement of GST with a single uniform national Value Added Tax across all goods and services.
  • A. 1 only
  • B. 2 and 3 only
  • C. 4 only
  • D. 1, 2 and 3