Taxation: UPSC Previous Year Questions (Indian Economy)
1 previous year UPSC Prelims question on Taxation (Indian Economy). Choose an option to see the answer and explanation.
Explanations state facts as of the year each question was asked; words like “recently” refer to that year.
Showing 1–1 of 1 question
UPSC 1997Indian Economy · Taxation
Q1. The Minimum Alternative Tax (MAT) was introduced in the Budget of the Government of India for the year:
Explanation
The Minimum Alternative Tax (MAT) was introduced in the Union Budget for 1996-97 to ensure that companies with substantial book profits pay a minimum amount of tax, even if their taxable income is reduced due to exemptions and deductions. MAT was introduced under Section 115JB of the Income Tax Act to prevent large corporations from exploiting tax loopholes and paying little to no taxes. This initiative was crucial for ensuring tax equity and broadening the corporate tax base. The MAT rate was initially set at 7.5% of book profits and has undergone periodic revisions over the years.
Answer key for these questions
Q
UPSC year
Correct answer
1
1997
(d) 1996-97
Frequently asked questions
How many previous year UPSC questions are there on Taxation?
This page covers 1 previous year UPSC Prelims GS Paper-I questions on Taxation (Indian Economy), asked from 1996 to 2025. Each has the correct answer and an explanation.
How should I use previous year UPSC questions for Prelims?
Attempt each question first, then open the answer and read the explanation for every option. Repeat by chapter, and track which statements UPSC reuses across years. Previous year questions show the exam pattern and difficulty level.
Which years are covered for Taxation?
Questions on Taxation (Indian Economy) are available for 15 years, from 1996 to 2025. Use the Year filter to practise a single paper.
