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Regulatory Thresholds and Caps in India

860 Questions

Regulatory Thresholds and Caps in India refer to the statutory limits imposed on finance, taxation, and corporate governance. It covers sectoral caps, expenditure limits, and penalty thresholds defined by law. These questions are crucial for banking, accounting, and civil services exams.

Financial limitsTax deductionsCorporate regulationsElectoral thresholdsPenalties and fines

Regulatory Thresholds and Caps in India Questions

Multiple choice

A sum of Rs. 25,000 is deposited in State Bank of India. The correct entry is
  1. State Bank of India's A/c Dr 25,000
    To Cash A/c 25,000
  2. Cash A/c Dr 25,000
    To State Bank of India's A/c 25,000
  3. Vijaya Bank's A/c Dr 25,000
    To Cash A/c 25,000

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Since cash has gone out, we have to credit it. State Bank of India is debited because we have deposited cash in it, so it has become our debtor.

Multiple choice commerce sources of business finance - 2 gdrs, adrs and idrs depository receipts international sources

What are the requirements for investing in IDRs?

  1. IDRs can be purchased by any person who is resident in India as defined under FEMA.

  2. Minimum application amount in an IDR issue shall be Rs. 20,000.

  3. Investments by Indian companies in IDRs shall not exceed the investment limits.

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

IDR is a form of Depository receipt. It is created by a domestic depository. It is an instrument denominated in Indian Rupees.Requirements for investing in IDRs are:a) IDRs can be purchased by any person who is resident in India as defined b) Minimum application amount in an IDR issue shall be Rs. 20,000.under FEMAc) Investments by Indian companies in IDRs shall not exceed the investment limits.

Multiple choice commercial applications financial accounting and reporting balance sheet, classification of assets and liabilities accounting records of not-for-profit organisations special issues associated with accounts of non-trading concerns accounting procedure for not-for-profit organisations prepration of income and expenditure account

Following details are available for Saturn social club. Opening balance of capital fund Rs. 4,67,600 Donation capitalized during the year Rs. 12,500 Surplus in Income & Expenditure A/c Rs. 18,750. Closing balance at capital fund must be ___________.

  1. 4,98,850

  2. 4,73,250

  3. 40,750

  4. 4,35,750
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Closing balance for the capital fund can be calculated using the formula given below:

$Closing\quad balance=\quad Opening\quad balance+Capitalised\quad value+Surplus$
Substitute values in the above equation
$Closing\quad balance=\quad Rs4,67,600+Rs18,750+Rs12,500\quad =Rs4,98,850$
Thus, the closing balance of capital fund is $Rs4,98.850$.

Multiple choice commercial studies classification of commercial organisations public, private and joint sector private and public sector sectoral organisation of business departmental undertakings meaning and features of departmental undertaking

Maximum no. of members in case of private company is_________________.

  1. $50$
  2. $100$
  3. $150$
  4. $200$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

464 says "Provided that the number of persons which may be prescribed under this sub-section shall not exceed one hundred." i.e. by rules limit can be prescribed, but whatever limit is prescribed it must not be greater than 100 (i.e. upto 100). And, the limit prescribed is 50 as per rules. Hence, current limit is 50 for a private company. 

To start a company, a minimum number of 2 members are required and a maximum number of 200 members as per the provisions of the Companies Act, 2013.

Multiple choice commercial studies classification of commercial organisations public, private and joint sector private and public sector sectoral organisation of business departmental undertakings meaning and features of departmental undertaking

Maximum number of members in case of a public company is ____________.

  1. $0$

  2. unlimited
  3. $50$
  4. $200$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

There is no limit on maximum numbers of members in case of public companies (in India).

Multiple choice business organisation and correspondence bank 2 - accounts maintained by a bank functions and services of banks role of banks in economic development and modes of money transfer accounts and other services

What is the maximum amount PER transaction that can be done through NEFT for cash-based transactions?

  1. Rs 25000

  2. Rs 30000

  3. Rs 50000

  4. No limit
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

According to RBI guidelines, the maximum limit for cash-based NEFT transactions is Rs 50,000 per transaction.

Multiple choice civics direct taxes black money and tax evasion meaning of tax public revenue : direct and indirect taxes income tax

For computing income from self occupied house properly (constructed after $1\cdot 4\cdot 1999$), maximum amount of deduction on account of interest on borrowings cannot exceed _______________.

  1. Rs. $1,00,000$
  2. Rs. $1,50,000$
  3. Rs. $2,50,000$
  4. Rs. $3,00,000$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For self-occupied property constructed after April 1, 1999, the maximum deduction for interest on housing loans is Rs 1,50,000 (though this limit has been increased in recent years, 1.5 lakh is the historical standard for this specific question context).

Multiple choice commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

As per the EPFO rules, the contribution rate for both employee and the employer is limited to 12 percent.(in the case of more than 20 employees)

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

As per the EPFO rules, the contribution rate for both employee and the employer is limited to 12 percent.(in the case of more than 20 employees)- this is a true statement. The contribution of both the employees and employer is limited to 10% only.

Multiple choice commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

Under the Payment of Gratuity Act, 1972 the maximum gratuity payable is _____.

  1. Rs. 10 lakhs

  2. Rs. 8 lakhs

  3. Rs. 5 lakhs

  4. Rs. 3.5 lakhs
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Gratuity is a type of after service payment to the employees who have fulfilled certain conditions of the job. According to the Payment of the Gratuity Act, 1972 the maximum amount of gratuity which can be paid to a employee is 10 lakh rupees. 

Multiple choice commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

The eligibility condition for obtaining gratuity under the Payment of Gratuity Act, 1972 is ___________________.

  1. Completion of 2 years of Service

  2. Completion of 3 years of Service

  3. Completion of 4 years of Service

  4. Completion of 5 years of Service
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Gratuity is a type of after service payment to the employees who have fulfilled certain conditions of the job. According to the Payment of the Gratuity Act, 1972 the maximum amount of gratuity which can be paid to a employee is 10 lakh rupees only after completion of a qualifying service of 5 years.
Multiple choice commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

As per the Employees Provident Funds and Miscellaneous Provisions Act, $1952$ the employees contribute a total of ________ to the funds established under the schemes prescribed by the Central Government.

  1. $15\%$ of their basic salary plus dearness allowance
  2. $15\%$ of their basic salary plus allowances
  3. $12\%$ of their dearness allowance
  4. $12\%$ of their basic salary plus dearness allowance
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

According to the employees provident funds and miscellaneous provisions act, 1952 the employees have to contribute a total of minimum twelve percent of their salary with dearness allowance to the funds established under the schemes prescribed by the central government.