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 2004Indian Economy · Taxation
Q1. 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?
Explanation
The Kelkar Committee Report (2002) did not recommend raising the personal income tax exemption limit specifically for widows to Rs. 1.20 lakh. Instead, the report focused on simplifying the tax system and broadening the tax base. Key recommendations included:
Abolition of Wealth Tax to streamline the tax structure. Elimination of standard deduction for salaried employees to simplify personal income tax calculations. Exemption from tax on dividends and capital gains from listed equities to encourage market participation. The report emphasized promoting economic grow-th by reducing distortions in the tax system and encouraging compliance.
Answer key for these questions
Q
UPSC year
Correct answer
1
2004
(b) Increase in the exemption limit of personal income to Rs. 1.20 lakh for widows
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.
