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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
  1. 30

  2. 20

  3. 40

  4. 50

  5. None of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Section 80 CCF of the Income Tax Act provided for a deduction of up to Rs. 20,000 for investment in specified infrastructure bonds. This was a temporary provision introduced to encourage investment in infrastructure projects. The limit was specifically capped at Rs. 20,000 (20 thousand rupees) as an additional deduction over and above the Section 80C limit.

Multiple choice
  1. Rs. 1.00 lakh per family

  2. Rs. 2.00 lakh per family

  3. Rs. 5.00 lakh per family

  4. Rs. 7.5 lakh per family

  5. Rs. 10.00 lakh per family

Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

The Government of India provides Rs. 10 lakh per family as a one-time rehabilitation grant for voluntary relocation from core/critical tiger habitat areas. This incentive aims to reduce human-wildlife conflict, enable tiger conservation, and ensure dignified resettlement of affected communities while protecting biodiversity.

Multiple choice
  1. An unregistered usufructuary mortgage for Rs. 100

  2. An unregistered gift of immovable property of the value of Rs. 99

  3. An oral lease of immovable property from year to year

  4. An oral assignment of debts

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The transfer is invalid. As per section 59 of Transfer of Property Act, 1882, where the principal money secured is one hundred rupees or more, a mortgage other than a mortgage by deposit of title deeds can be affected only by a registered instrument signed by the mortgagor.

 

Multiple choice
  1. Rs. 1000/-

  2. Rs. 100/-

  3. Rs. 500/-

  4. Rs. 10,000/-

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under the Indian Partnership Act, a registered firm cannot claim a set off exceeding Rs. 100/- in any legal proceeding against the firm or its partners. This is a specific statutory limitation on the right of set off for registered firms. Options A, C, and D suggest incorrect amounts - Rs. 1000/-, Rs. 500/-, and Rs. 10,000/- respectively - which are not the limits prescribed by law.

Multiple choice
  1. 10 lakh

  2. 25 lakh

  3. 30 lakh

  4. 50 lakh

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The National Handicapped Finance and Development Corporation (NHFDC) has been set up by the Ministry of Social Justice and Empowerment, Government of India on 24th January, 1997. NHFDC functions as an apex institution for channelising the funds to persons with disabilities through the State Channelising Agencies (SCAs) nominated by the State Government. Loan assistance is provided to disabled persons for manufacturing, fabrication and production. The disabled person will be the owner/chief executive of the company and will employ at least 15% disabled persons. A maximum loan of 25 lakh is provided for the same.

Multiple choice
  1. Minimum limit of gold deposit = 500 gm

  2. No investigation of source of deposited gold

  3. No upper limit of gold deposit

  4. All of the above

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Gold Bond Scheme was launched with a minimum deposit limit of 500 grams to attract even small holders. It allows gold deposits without any investigation into the source of the gold (to encourage voluntary disclosure) and places no upper limit on deposits. All the features mentioned in options A, B, and C are correct.