General Awareness · Banking Financial Awareness

Regulatory Thresholds and Caps in India

778 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

What is the maximum amount of deduction allowed under Section 80CCD(5) of the Income Tax Act, 1961 for contributions made to a Pension Plan of a University or Educational Institution?

  1. Rs. 10,000

  2. Rs. 15,000

  3. Rs. 20,000

  4. Rs. 25,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under Section 80CCD(5) of the Income Tax Act, 1961, a deduction of up to Rs. 10,000 is allowed for contributions made to a Pension Plan of a University or Educational Institution.

Multiple choice

What is the maximum out-of-pocket expense for a Medigap policy?

  1. $2,000.
  2. $3,000.
  3. $4,000.
  4. $5,000.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The maximum out-of-pocket expense for a Medigap policy is \$4,000 per year. This means that after you have paid \$4,000 in out-of-pocket medical expenses, your Medigap policy will cover 100% of the remaining covered expenses.

Multiple choice

What is the maximum amount of funding that can be awarded through the Dance Creation Grant?

  1. $10,000
  2. $20,000
  3. $30,000
  4. $40,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The maximum amount of funding that can be awarded through the Dance Creation Grant is $20,000.

Multiple choice

What is the maximum amount of money that I can borrow in federal student loans?

  1. $27,000 for undergraduate students
  2. $31,000 for graduate students
  3. $57,500 for medical students
  4. $138,500 for law students
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The maximum amount of money that undergraduate students can borrow in federal student loans is $27,000.

Multiple choice

The Pradhan Mantri Mudra Yojana (PMMY) is a microfinance scheme that provides loans to micro and small enterprises. What is the maximum loan amount available under PMMY?

  1. 10 lakh

  2. 5 lakh

  3. 20 lakh

  4. 15 lakh
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Pradhan Mantri Mudra Yojana (PMMY) provides loans to micro and small enterprises to support their growth and development. The scheme offers loans up to 10 lakh rupees to eligible borrowers. PMMY has three loan categories: Shishu (up to 50,000 rupees), Kishore (50,000 to 5 lakh rupees), and Tarun (5 lakh to 10 lakh rupees).

Multiple choice

The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a crop insurance scheme that provides financial support to farmers in the event of crop loss. What is the maximum sum insured per hectare under PMFBY?

  1. 25,000 rupees

  2. 15,000 rupees

  3. 35,000 rupees

  4. 20,000 rupees
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Pradhan Mantri Fasal Bima Yojana (PMFBY) provides crop insurance coverage to farmers against crop losses due to natural calamities, pests, and diseases. The scheme offers a maximum sum insured of 25,000 rupees per hectare for notified crops. PMFBY also provides post-harvest losses coverage for certain crops.

Multiple choice

What is the maximum fee that can be charged for processing an RTI application?

  1. Rs. 10

  2. Rs. 50

  3. Rs. 100

  4. Rs. 200
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The maximum fee that can be charged for processing an RTI application is Rs. 10.

Multiple choice

What is the minimum threshold limit for professional income to be taxable in India?

  1. Rs. 2,50,000

  2. Rs. 3,00,000

  3. Rs. 5,00,000

  4. Rs. 10,00,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The minimum threshold limit for professional income to be taxable in India is Rs. 2,50,000. If an individual's professional income exceeds this limit, they are required to pay income tax on the excess amount.

Multiple choice

What are the limits on the amount of foreign exchange that can be held by residents and non-residents under FEMA?

  1. Residents can hold up to USD 250,000 in foreign exchange.

  2. Non-residents can hold up to USD 1 million in foreign exchange.

  3. There are no limits on the amount of foreign exchange that can be held by residents and non-residents.

  4. None of the above.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

There are no limits on the amount of foreign exchange that can be held by residents and non-residents under FEMA.

Multiple choice

What is the Liberalised Remittance Scheme (LRS) under FEMA?

  1. It allows residents to remit up to USD 250,000 per financial year for various purposes.

  2. It allows non-residents to remit up to USD 1 million per financial year for various purposes.

  3. It allows both residents and non-residents to remit foreign exchange for various purposes.

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

The Liberalised Remittance Scheme (LRS) under FEMA allows residents to remit up to USD 250,000 per financial year for various purposes, such as travel, education, medical treatment, and maintenance of close relatives abroad.

Multiple choice

What is the maximum amount of money that a student can borrow in federal student loans each year?

  1. $12,500
  2. $20,500
  3. $30,000
  4. $40,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The maximum amount of money that a student can borrow in federal student loans each year is \$12,500 for undergraduate students and \$20,500 for graduate students.

Multiple choice

What is the amount of scholarship provided under the Central Sector Scheme of Scholarship for Persons with Disability?

  1. ₹ 2,000 per month

  2. ₹ 3,000 per month

  3. ₹ 4,000 per month

  4. ₹ 5,000 per month
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under the Central Sector Scheme of Scholarship for Persons with Disability, students with disabilities are provided a scholarship of ₹ 2,000 per month.

Multiple choice

What is the minimum FDI limit for projects in the infrastructure sector in India?

  1. 10%

  2. 25%

  3. 50%

  4. 75%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The minimum FDI limit for projects in the infrastructure sector in India is 10%.

Multiple choice

What is the maximum amount that can be contributed to a traditional IRA in 2023?

  1. $6,500
  2. $7,500
  3. $10,000
  4. $12,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The maximum contribution limit for a traditional IRA in 2023 is $6,500 ($7,500 for individuals age 50 or older).

Multiple choice

What is the maximum amount that can be contributed to a traditional IRA in 2023?

  1. $6,500
  2. $7,500
  3. $10,000
  4. $12,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The maximum contribution limit for a traditional IRA in 2023 is $6,500 ($7,500 for individuals age 50 or older).