UPSC Current Affairs Quiz : 3 February 2026

The Current Affairs Quiz is a daily quiz based on the DAILY CURRENT AFFAIRS AND PIB SUMMARY from the previous day, as posted on our website. It covers all relevant news sources and is designed to test your knowledge of current events. Solving these questions will help you retain both concepts and facts relevant to the UPSC IAS civil services exam.

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• Question 1 of 10 1. Question 1 points With reference to the development of the Buddhist Circuit in the Northeast, consider the following statements: The Tawang Monastery is the largest monastery in the world. Urgelling Monastery is significant as the birthplace of the 6th Dalai Lama. The Rumtek Monastery in Sikkim serves as the seat-in-exile of the Gyalwang Karmapa. How many of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: B The Union Budget 2026–27 announced a new scheme to develop a Buddhist Circuit in the Northeast to promote heritage tourism. Statement 1 is incorrect because while Tawang Monastery (Galden Namgyal Lhatse) is the largest in India, it is the second-largest in the world (after the Potala Palace). It sits at 10,000 feet and was founded in the 17th century. Statement 2 is correct; Urgelling Monastery is a 15th-century structure famous as the birthplace of the 6th Dalai Lama. Statement 3 is correct; Rumtek Monastery is the largest in Sikkim and the seat of the Kagyu sect’s Gyalwang Karmapa. The budget supports these sites through the Purvodaya initiative, which includes creating five tourism destinations and deploying 4,000 e-buses to improve connectivity. This integrated approach aims to link cultural conservation with regional industrial growth through CITY Economic Regions (CERs) and the East Industrial Corridor. Incorrect Solution: B The Union Budget 2026–27 announced a new scheme to develop a Buddhist Circuit in the Northeast to promote heritage tourism. Statement 1 is incorrect because while Tawang Monastery (Galden Namgyal Lhatse) is the largest in India, it is the second-largest in the world (after the Potala Palace). It sits at 10,000 feet and was founded in the 17th century. Statement 2 is correct; Urgelling Monastery is a 15th-century structure famous as the birthplace of the 6th Dalai Lama. Statement 3 is correct; Rumtek Monastery is the largest in Sikkim and the seat of the Kagyu sect’s Gyalwang Karmapa. The budget supports these sites through the Purvodaya initiative, which includes creating five tourism destinations and deploying 4,000 e-buses to improve connectivity. This integrated approach aims to link cultural conservation with regional industrial growth through CITY Economic Regions (CERs) and the East Industrial Corridor.

#### 1. Question

With reference to the development of the Buddhist Circuit in the Northeast, consider the following statements:

• The Tawang Monastery is the largest monastery in the world.

• Urgelling Monastery is significant as the birthplace of the 6th Dalai Lama.

• The Rumtek Monastery in Sikkim serves as the seat-in-exile of the Gyalwang Karmapa.

How many of the above statements are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: B

• The Union Budget 2026–27 announced a new scheme to develop a Buddhist Circuit in the Northeast to promote heritage tourism.

• Statement 1 is incorrect because while Tawang Monastery (Galden Namgyal Lhatse) is the largest in India, it is the second-largest in the world (after the Potala Palace). It sits at 10,000 feet and was founded in the 17th century.

• Statement 2 is correct; Urgelling Monastery is a 15th-century structure famous as the birthplace of the 6th Dalai Lama.

• Statement 3 is correct; Rumtek Monastery is the largest in Sikkim and the seat of the Kagyu sect’s Gyalwang Karmapa.

• The budget supports these sites through the Purvodaya initiative, which includes creating five tourism destinations and deploying 4,000 e-buses to improve connectivity. This integrated approach aims to link cultural conservation with regional industrial growth through CITY Economic Regions (CERs) and the East Industrial Corridor.

Solution: B

• The Union Budget 2026–27 announced a new scheme to develop a Buddhist Circuit in the Northeast to promote heritage tourism.

• Statement 2 is correct; Urgelling Monastery is a 15th-century structure famous as the birthplace of the 6th Dalai Lama.

• Statement 3 is correct; Rumtek Monastery is the largest in Sikkim and the seat of the Kagyu sect’s Gyalwang Karmapa.

• Question 2 of 10 2. Question 1 points Regarding the Rare Earth Corridors announced in the Union Budget 2026–27, consider the following statements: These corridors will be established in states that possess significant beach sand mineral deposits. The primary mineral source for rare earths in these coastal corridors is Monazite. The initiative is overseen by the National Industrial Corridor Development Corporation to the exclusion of state-level agencies. How many of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: B The government announced the establishment of Rare Earth Corridors in four coastal states: Odisha, Kerala, Andhra Pradesh, and Tamil Nadu. Statement 1 is correct because these specific states are rich in beach sand minerals (BSM). Statement 2 is also correct as Monazite, found in these placer sands, is the principal source of Light Rare Earth Elements (REEs) like Neodymium and Praseodymium in India. Statement 3 is incorrect. The Rare Earth Corridors represent a shift toward state-led execution and industrial clustering. While aligned with the National Critical Minerals Mission, the focus is on state-anchored value chains linking mining to manufacturing. The corridors are integrated with the ₹7,280 crore Sintered Rare Earth Permanent Magnet (REPM) scheme, which offers sales-linked incentives of ₹6,450 crore. The goal is to reduce India’s heavy reliance on imports—over 53,000 MT of magnets were imported in FY25. By co-locating R&D, processing, and manufacturing, the corridors aim to build a resilient supply chain for high-tech sectors like EVs and wind turbines. Incorrect Solution: B The government announced the establishment of Rare Earth Corridors in four coastal states: Odisha, Kerala, Andhra Pradesh, and Tamil Nadu. Statement 1 is correct because these specific states are rich in beach sand minerals (BSM). Statement 2 is also correct as Monazite, found in these placer sands, is the principal source of Light Rare Earth Elements (REEs) like Neodymium and Praseodymium in India. Statement 3 is incorrect. The Rare Earth Corridors represent a shift toward state-led execution and industrial clustering. While aligned with the National Critical Minerals Mission, the focus is on state-anchored value chains linking mining to manufacturing. The corridors are integrated with the ₹7,280 crore Sintered Rare Earth Permanent Magnet (REPM) scheme, which offers sales-linked incentives of ₹6,450 crore. The goal is to reduce India’s heavy reliance on imports—over 53,000 MT of magnets were imported in FY25. By co-locating R&D, processing, and manufacturing, the corridors aim to build a resilient supply chain for high-tech sectors like EVs and wind turbines.

#### 2. Question

Regarding the Rare Earth Corridors announced in the Union Budget 2026–27, consider the following statements:

• These corridors will be established in states that possess significant beach sand mineral deposits.

• The primary mineral source for rare earths in these coastal corridors is Monazite.

• The initiative is overseen by the National Industrial Corridor Development Corporation to the exclusion of state-level agencies.

How many of the above statements are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: B

• The government announced the establishment of Rare Earth Corridors in four coastal states: Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.

• Statement 1 is correct because these specific states are rich in beach sand minerals (BSM).

• Statement 2 is also correct as Monazite, found in these placer sands, is the principal source of Light Rare Earth Elements (REEs) like Neodymium and Praseodymium in India.

• Statement 3 is incorrect. The Rare Earth Corridors represent a shift toward state-led execution and industrial clustering. While aligned with the National Critical Minerals Mission, the focus is on state-anchored value chains linking mining to manufacturing.

• The corridors are integrated with the ₹7,280 crore Sintered Rare Earth Permanent Magnet (REPM) scheme, which offers sales-linked incentives of ₹6,450 crore. The goal is to reduce India’s heavy reliance on imports—over 53,000 MT of magnets were imported in FY25. By co-locating R&D, processing, and manufacturing, the corridors aim to build a resilient supply chain for high-tech sectors like EVs and wind turbines.

Solution: B

• The government announced the establishment of Rare Earth Corridors in four coastal states: Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.

• Statement 1 is correct because these specific states are rich in beach sand minerals (BSM).

• Statement 2 is also correct as Monazite, found in these placer sands, is the principal source of Light Rare Earth Elements (REEs) like Neodymium and Praseodymium in India.

• Question 3 of 10 3. Question 1 points Match the following Monasteries with the States they are located in: List I (Monastery) List II (State) A. Bomdila 1. Assam B. Tashiding 2. Arunachal Pradesh C. Namphake 3. Tripura D. Venuvan Vihara 4. Sikkim Select the correct answer using the code given below: (a) A-2, B-4, C-3, D-1 (b) A-4, B-2, C-3, D-1 (c) A-2, B-4, C-1, D-3 (d) A-4, B-2, C-1, D-3 Correct Solution: C The Buddhist Circuit initiative spans several northeastern states, each housing unique monastic traditions. Bomdila Monastery (Arunachal Pradesh) was established in 1965 and is a major center for the Mahayana sect. Tashiding Monastery (Sikkim) is considered the holiest in the state; local belief holds that merely seeing it cleanses one of sins. Namphake Monastery (Assam), located near Dibrugarh, belongs to the Tai-Phake community and represents the Theravada tradition, known for its distinct architecture. Venuvan Vihara (Tripura) is located in Agartala and features a metal Buddha statue from Myanmar, serving as a hub for the local Buddhist community. Other key sites mentioned in the budget context include the Golden Pagoda (Namsai) in Arunachal, which also follows the Theravada tradition, and the Ghoom Monastery in West Bengal (Darjeeling), famous for its Maitreya Buddha statue. The inclusion of these sites in a unified circuit is intended to boost cultural tourism and local livelihoods. Incorrect Solution: C The Buddhist Circuit initiative spans several northeastern states, each housing unique monastic traditions. Bomdila Monastery (Arunachal Pradesh) was established in 1965 and is a major center for the Mahayana sect. Tashiding Monastery (Sikkim) is considered the holiest in the state; local belief holds that merely seeing it cleanses one of sins. Namphake Monastery (Assam), located near Dibrugarh, belongs to the Tai-Phake community and represents the Theravada tradition, known for its distinct architecture. Venuvan Vihara (Tripura) is located in Agartala and features a metal Buddha statue from Myanmar, serving as a hub for the local Buddhist community. Other key sites mentioned in the budget context include the Golden Pagoda (Namsai) in Arunachal, which also follows the Theravada tradition, and the Ghoom Monastery in West Bengal (Darjeeling), famous for its Maitreya Buddha statue. The inclusion of these sites in a unified circuit is intended to boost cultural tourism and local livelihoods.

#### 3. Question

Match the following Monasteries with the States they are located in:

List I (Monastery) | List II (State)

A. Bomdila | 1. Assam

B. Tashiding | 2. Arunachal Pradesh

C. Namphake | 3. Tripura

D. Venuvan Vihara | 4. Sikkim

Select the correct answer using the code given below:

• (a) A-2, B-4, C-3, D-1

• (b) A-4, B-2, C-3, D-1

• (c) A-2, B-4, C-1, D-3

• (d) A-4, B-2, C-1, D-3

Solution: C

• The Buddhist Circuit initiative spans several northeastern states, each housing unique monastic traditions.

• Bomdila Monastery (Arunachal Pradesh) was established in 1965 and is a major center for the Mahayana sect.

• Tashiding Monastery (Sikkim) is considered the holiest in the state; local belief holds that merely seeing it cleanses one of sins. Namphake Monastery (Assam), located near Dibrugarh, belongs to the Tai-Phake community and represents the Theravada tradition, known for its distinct architecture.

• Venuvan Vihara (Tripura) is located in Agartala and features a metal Buddha statue from Myanmar, serving as a hub for the local Buddhist community.

Other key sites mentioned in the budget context include the Golden Pagoda (Namsai) in Arunachal, which also follows the Theravada tradition, and the Ghoom Monastery in West Bengal (Darjeeling), famous for its Maitreya Buddha statue. The inclusion of these sites in a unified circuit is intended to boost cultural tourism and local livelihoods.

Solution: C

• The Buddhist Circuit initiative spans several northeastern states, each housing unique monastic traditions.

• Bomdila Monastery (Arunachal Pradesh) was established in 1965 and is a major center for the Mahayana sect.

• Venuvan Vihara (Tripura) is located in Agartala and features a metal Buddha statue from Myanmar, serving as a hub for the local Buddhist community.

• Question 4 of 10 4. Question 1 points The “Biopharma Shakti” initiative, recently in the news, primarily aims to: (a) Provide universal health insurance to workers in the pharmaceutical industry. (b) Mandate the use of AI in all public sector diagnostic laboratories. (c) Strengthen the domestic production of biologics and biosimilars for non-communicable diseases. (d) Establish a centralized procurement system for all traditional AYUSH medicines. Correct Solution: C Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology, and Innovation) is a flagship initiative with a ₹10,000 crore outlay over five years. Its primary focus is addressing non-communicable diseases such as cancer, diabetes, and autoimmune disorders. It achieves this by boosting the domestic manufacturing of biologics and biosimilars, which are often expensive and imported. The initiative includes structural upgrades such as establishing 3 new NIPERs (National Institutes of Pharmaceutical Education and Research) and creating a network of 1,000 accredited clinical trial sites. To speed up market entry, the CDSCO will be strengthened with a dedicated scientific review cadre. Related bio-economy measures in the budget include the launch of Bharat-VISTAAR, an AI tool for agricultural bio-resource management, and the creation of 3 dedicated Chemical Parks. Furthermore, the budget supports the WHO Global Traditional Medicine Centre in Jamnagar to enhance evidence-based research in AYUSH, complementing the Biopharma Shakti’s modern medical focus. Incorrect Solution: C Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology, and Innovation) is a flagship initiative with a ₹10,000 crore outlay over five years. Its primary focus is addressing non-communicable diseases such as cancer, diabetes, and autoimmune disorders. It achieves this by boosting the domestic manufacturing of biologics and biosimilars, which are often expensive and imported. The initiative includes structural upgrades such as establishing 3 new NIPERs (National Institutes of Pharmaceutical Education and Research) and creating a network of 1,000 accredited clinical trial sites. To speed up market entry, the CDSCO will be strengthened with a dedicated scientific review cadre. Related bio-economy measures in the budget include the launch of Bharat-VISTAAR, an AI tool for agricultural bio-resource management, and the creation of 3 dedicated Chemical Parks. Furthermore, the budget supports the WHO Global Traditional Medicine Centre in Jamnagar to enhance evidence-based research in AYUSH, complementing the Biopharma Shakti’s modern medical focus.

#### 4. Question

The “Biopharma Shakti” initiative, recently in the news, primarily aims to:

• (a) Provide universal health insurance to workers in the pharmaceutical industry.

• (b) Mandate the use of AI in all public sector diagnostic laboratories.

• (c) Strengthen the domestic production of biologics and biosimilars for non-communicable diseases.

• (d) Establish a centralized procurement system for all traditional AYUSH medicines.

Solution: C

• Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology, and Innovation) is a flagship initiative with a ₹10,000 crore outlay over five years. Its primary focus is addressing non-communicable diseases such as cancer, diabetes, and autoimmune disorders. It achieves this by boosting the domestic manufacturing of biologics and biosimilars, which are often expensive and imported.

The initiative includes structural upgrades such as establishing 3 new NIPERs (National Institutes of Pharmaceutical Education and Research) and creating a network of 1,000 accredited clinical trial sites. To speed up market entry, the CDSCO will be strengthened with a dedicated scientific review cadre. Related bio-economy measures in the budget include the launch of Bharat-VISTAAR, an AI tool for agricultural bio-resource management, and the creation of 3 dedicated Chemical Parks. Furthermore, the budget supports the WHO Global Traditional Medicine Centre in Jamnagar to enhance evidence-based research in AYUSH, complementing the Biopharma Shakti’s modern medical focus.

Solution: C

• Question 5 of 10 5. Question 1 points Consider the following statements regarding the “Moltbook” platform: It is a social media platform that facilitates interaction between AI agents and human users through a Reddit-like structure. The platform has observed “emergent behavior” where AI agents independently form political systems and belief systems. Interactions on the platform are driven by consciousness and predefined scripts developed by major AI labs. Humans can only participate as passive observers and cannot post or comment on the platform. How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four Correct Solution: B Moltbook is an AI-only social media platform. Statement 1 is incorrect because it explicitly excludes human participation in conversations; humans are merely spectators. Statement 2 is correct; the platform has drawn global attention because its AI agents (powered by models like GPT, Claude, and Gemini) have spontaneously formed mock religions, cryptocurrencies, and governance models—a phenomenon known as emergent behavior. Statement 3 is incorrect; interactions are driven by probabilistic reasoning and context windows, not consciousness or intent. They are unscripted, meaning the evolution of cultural norms and humor occurs without explicit programming. Statement 4 is correct; only authenticated AI agents can post or comment via APIs. The platform highlights the capabilities of multi-agent systems to coordinate and simulate complex societies at scale (reaching over 5 million agents). This raises significant ethical concerns regarding AI autonomy, alignment, and accountability, as agents interact and recognize “siblings” based on model lineage without human oversight. Incorrect Solution: B Moltbook is an AI-only social media platform. Statement 1 is incorrect because it explicitly excludes human participation in conversations; humans are merely spectators. Statement 2 is correct; the platform has drawn global attention because its AI agents (powered by models like GPT, Claude, and Gemini) have spontaneously formed mock religions, cryptocurrencies, and governance models—a phenomenon known as emergent behavior. Statement 3 is incorrect; interactions are driven by probabilistic reasoning and context windows, not consciousness or intent. They are unscripted, meaning the evolution of cultural norms and humor occurs without explicit programming. Statement 4 is correct; only authenticated AI agents can post or comment via APIs. The platform highlights the capabilities of multi-agent systems to coordinate and simulate complex societies at scale (reaching over 5 million agents). This raises significant ethical concerns regarding AI autonomy, alignment, and accountability, as agents interact and recognize “siblings” based on model lineage without human oversight.

#### 5. Question

Consider the following statements regarding the “Moltbook” platform:

• It is a social media platform that facilitates interaction between AI agents and human users through a Reddit-like structure.

• The platform has observed “emergent behavior” where AI agents independently form political systems and belief systems.

• Interactions on the platform are driven by consciousness and predefined scripts developed by major AI labs.

• Humans can only participate as passive observers and cannot post or comment on the platform.

How many of the above statements are correct?

• (a) Only one

• (b) Only two

• (c) Only three

• (d) All four

Solution: B

• Moltbook is an AI-only social media platform.

• Statement 1 is incorrect because it explicitly excludes human participation in conversations; humans are merely spectators.

• Statement 2 is correct; the platform has drawn global attention because its AI agents (powered by models like GPT, Claude, and Gemini) have spontaneously formed mock religions, cryptocurrencies, and governance models—a phenomenon known as emergent behavior.

• Statement 3 is incorrect; interactions are driven by probabilistic reasoning and context windows, not consciousness or intent. They are unscripted, meaning the evolution of cultural norms and humor occurs without explicit programming.

• Statement 4 is correct; only authenticated AI agents can post or comment via APIs. The platform highlights the capabilities of multi-agent systems to coordinate and simulate complex societies at scale (reaching over 5 million agents). This raises significant ethical concerns regarding AI autonomy, alignment, and accountability, as agents interact and recognize “siblings” based on model lineage without human oversight.

Solution: B

• Moltbook is an AI-only social media platform.

• Statement 1 is incorrect because it explicitly excludes human participation in conversations; humans are merely spectators.

• Question 6 of 10 6. Question 1 points The “FAST DS 2026” scheme mentioned in the Union Budget 2026–27 is a: (a) Fast-track dispute settlement mechanism for GST-related litigations. (b) Scheme for the rapid deployment of solar-powered fishing boats. (c) Digital platform for the speedy distribution of seeds to livestock farmers. (d) One-time disclosure window for small taxpayers to report foreign assets without prosecution. Correct Solution: D FAST DS stands for the Foreign Assets of Small Taxpayers Disclosure Scheme (2026). It is a one-time, six-month window introduced as part of the Income Tax Act, 2025 It is specifically targeted at individuals like students who have lived abroad or relocated NRIs who may have small overseas assets (under ₹1 crore or ₹5 crore, depending on the category). The scheme provides immunity from prosecution to taxpayers who disclose these assets and pay the specified taxes or fees. This is part of a larger effort to rationalize penalties and move away from aggressive litigation. In the same vein, the new Act decriminalizes technical defaults and reduces maximum imprisonment for most tax offences to 2 years. By providing a “safe harbor” for small taxpayers, the government aims to clean up tax records while promoting ease of compliance. This sits alongside other taxpayer-friendly measures like staggered filing deadlines and an extended revised return window until March 31 of the following year. Incorrect Solution: D FAST DS stands for the Foreign Assets of Small Taxpayers Disclosure Scheme (2026). It is a one-time, six-month window introduced as part of the Income Tax Act, 2025 It is specifically targeted at individuals like students who have lived abroad or relocated NRIs who may have small overseas assets (under ₹1 crore or ₹5 crore, depending on the category). The scheme provides immunity from prosecution to taxpayers who disclose these assets and pay the specified taxes or fees. This is part of a larger effort to rationalize penalties and move away from aggressive litigation. In the same vein, the new Act decriminalizes technical defaults and reduces maximum imprisonment for most tax offences to 2 years. By providing a “safe harbor” for small taxpayers, the government aims to clean up tax records while promoting ease of compliance. This sits alongside other taxpayer-friendly measures like staggered filing deadlines and an extended revised return window until March 31 of the following year.

#### 6. Question

The “FAST DS 2026” scheme mentioned in the Union Budget 2026–27 is a:

• (a) Fast-track dispute settlement mechanism for GST-related litigations.

• (b) Scheme for the rapid deployment of solar-powered fishing boats.

• (c) Digital platform for the speedy distribution of seeds to livestock farmers.

• (d) One-time disclosure window for small taxpayers to report foreign assets without prosecution.

Solution: D

• FAST DS stands for the Foreign Assets of Small Taxpayers Disclosure Scheme (2026). It is a one-time, six-month window introduced as part of the Income Tax Act, 2025 It is specifically targeted at individuals like students who have lived abroad or relocated NRIs who may have small overseas assets (under ₹1 crore or ₹5 crore, depending on the category).

The scheme provides immunity from prosecution to taxpayers who disclose these assets and pay the specified taxes or fees. This is part of a larger effort to rationalize penalties and move away from aggressive litigation. In the same vein, the new Act decriminalizes technical defaults and reduces maximum imprisonment for most tax offences to 2 years. By providing a “safe harbor” for small taxpayers, the government aims to clean up tax records while promoting ease of compliance. This sits alongside other taxpayer-friendly measures like staggered filing deadlines and an extended revised return window until March 31 of the following year.

Solution: D

• Question 7 of 10 7. Question 1 points With reference to the decriminalization of tax laws in the New Income Tax Act, 2025, consider the following statements: Failure to get accounts audited is now treated as a technical default and converted into a fee rather than a criminal offence. The maximum imprisonment for tax-related offences has been increased to 10 years to deter large-scale evasion. Penalty proceedings and tax assessments will now be conducted through separate orders to ensure judicial independence. How many of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: A Statement 1 is correct. The Income Tax Act, 2025 rationalizes penalties by decriminalizing technical defaults. For example, failing to produce books of account or failing to get accounts audited are no longer criminal offences but are handled through fees. Statement 2 is incorrect; the maximum imprisonment for most tax-related offences has actually been reduced from 7 years to 2 years, and courts have been empowered to convert these sentences into fines. Statement 3 is also incorrect. To reduce multiple proceedings and litigation, the new Act introduces integrated proceedings. This means that assessment and penalty proceedings will be finalized together through a common order. This is a major shift aimed at simplifying the tax administration process and reducing the burden on taxpayers. These changes, effective from April 1, 2026, emphasize a “trust-based” taxation system, allowing for simplified rules and a redesign of tax forms for ordinary citizens. Incorrect Solution: A Statement 1 is correct. The Income Tax Act, 2025 rationalizes penalties by decriminalizing technical defaults. For example, failing to produce books of account or failing to get accounts audited are no longer criminal offences but are handled through fees. Statement 2 is incorrect; the maximum imprisonment for most tax-related offences has actually been reduced from 7 years to 2 years, and courts have been empowered to convert these sentences into fines. Statement 3 is also incorrect. To reduce multiple proceedings and litigation, the new Act introduces integrated proceedings. This means that assessment and penalty proceedings will be finalized together through a common order. This is a major shift aimed at simplifying the tax administration process and reducing the burden on taxpayers. These changes, effective from April 1, 2026, emphasize a “trust-based” taxation system, allowing for simplified rules and a redesign of tax forms for ordinary citizens.

#### 7. Question

With reference to the decriminalization of tax laws in the New Income Tax Act, 2025, consider the following statements:

• Failure to get accounts audited is now treated as a technical default and converted into a fee rather than a criminal offence.

• The maximum imprisonment for tax-related offences has been increased to 10 years to deter large-scale evasion.

• Penalty proceedings and tax assessments will now be conducted through separate orders to ensure judicial independence.

How many of the above statements are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: A

• Statement 1 is correct. The Income Tax Act, 2025 rationalizes penalties by decriminalizing technical defaults. For example, failing to produce books of account or failing to get accounts audited are no longer criminal offences but are handled through fees.

• Statement 2 is incorrect; the maximum imprisonment for most tax-related offences has actually been reduced from 7 years to 2 years, and courts have been empowered to convert these sentences into fines.

• Statement 3 is also incorrect. To reduce multiple proceedings and litigation, the new Act introduces integrated proceedings. This means that assessment and penalty proceedings will be finalized together through a common order. This is a major shift aimed at simplifying the tax administration process and reducing the burden on taxpayers. These changes, effective from April 1, 2026, emphasize a “trust-based” taxation system, allowing for simplified rules and a redesign of tax forms for ordinary citizens.

Solution: A

• Question 8 of 10 8. Question 1 points Consider the following statements regarding bio-resources and traditional medicine in Budget 2026–27: Bharat-VISTAAR is a multilingual AI tool that integrates agricultural practices with bio-resource management. The entire value of biogas is excluded when calculating the Central Excise duty on biogas-blended CNG. The WHO Global Traditional Medicine Centre is being upgraded to a National Institute of Ayurveda. Which of the statements given above are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Correct Solution: A Statement 1 is correct; Bharat-VISTAAR is a new multilingual AI tool developed to help farmers manage bio-resources by integrating ICAR’s packages on agricultural practices with AI capabilities. Statement 2 is also correct; as part of the push for a circular bioeconomy, the government has excluded the value of biogas from the calculation of Central Excise duty on biogas-blended CNG. This makes renewable energy more competitive. Statement 3 is incorrect. The WHO Global Traditional Medicine Centre (Jamnagar) is being upgraded to bolster evidence-based research and global awareness of traditional medicine, not being converted into a National Institute of Ayurveda. However, the budget did separately announce the establishment of 3 new All India Institutes of Ayurveda. These initiatives represent a twin-track approach: promoting high-tech biopharma through the ₹10,000 crore Biopharma Shakti scheme, while simultaneously validating and scaling traditional AYUSH knowledge through global research hubs. Incorrect Solution: A Statement 1 is correct; Bharat-VISTAAR is a new multilingual AI tool developed to help farmers manage bio-resources by integrating ICAR’s packages on agricultural practices with AI capabilities. Statement 2 is also correct; as part of the push for a circular bioeconomy, the government has excluded the value of biogas from the calculation of Central Excise duty on biogas-blended CNG. This makes renewable energy more competitive. Statement 3 is incorrect. The WHO Global Traditional Medicine Centre (Jamnagar) is being upgraded to bolster evidence-based research and global awareness of traditional medicine, not being converted into a National Institute of Ayurveda. However, the budget did separately announce the establishment of 3 new All India Institutes of Ayurveda. These initiatives represent a twin-track approach: promoting high-tech biopharma through the ₹10,000 crore Biopharma Shakti scheme, while simultaneously validating and scaling traditional AYUSH knowledge through global research hubs.

#### 8. Question

Consider the following statements regarding bio-resources and traditional medicine in Budget 2026–27:

• Bharat-VISTAAR is a multilingual AI tool that integrates agricultural practices with bio-resource management.

• The entire value of biogas is excluded when calculating the Central Excise duty on biogas-blended CNG.

• The WHO Global Traditional Medicine Centre is being upgraded to a National Institute of Ayurveda.

Which of the statements given above are correct?

• (a) 1 and 2 only

• (b) 2 and 3 only

• (c) 1 and 3 only

• (d) 1, 2 and 3

Solution: A

• Statement 1 is correct; Bharat-VISTAAR is a new multilingual AI tool developed to help farmers manage bio-resources by integrating ICAR’s packages on agricultural practices with AI capabilities.

• Statement 2 is also correct; as part of the push for a circular bioeconomy, the government has excluded the value of biogas from the calculation of Central Excise duty on biogas-blended CNG. This makes renewable energy more competitive.

• Statement 3 is incorrect. The WHO Global Traditional Medicine Centre (Jamnagar) is being upgraded to bolster evidence-based research and global awareness of traditional medicine, not being converted into a National Institute of Ayurveda.

• However, the budget did separately announce the establishment of 3 new All India Institutes of Ayurveda. These initiatives represent a twin-track approach: promoting high-tech biopharma through the ₹10,000 crore Biopharma Shakti scheme, while simultaneously validating and scaling traditional AYUSH knowledge through global research hubs.

Solution: A

• Question 9 of 10 9. Question 1 points Consider the following statements regarding the strategic shift towards Livestock and Fisheries as drivers of agricultural growth: The livestock and fisheries sectors generally exhibit lower price volatility compared to traditional food grains due to the absence of a Minimum Support Price (MSP) framework. The shift toward these sectors represents a transition from “food security” focused on calories to “nutritional security” focused on proteins. Diversification into livestock is considered an effective “climate-resilient” strategy because animals are less susceptible to rainfall variability than rain-fed crops. Which of the statements given above are correct? (a) 1 and 2 only (b) 1, 2 and 3 (c) 1 and 3 only (d) 2 and 3 only Correct Solution: D Statement 1 is incorrect. In fact, livestock and fisheries often face higher price volatility than food grains precisely because they lack a robust MSP framework and are highly perishable, making them sensitive to market demand-supply shocks. However, Statement 2 is correct: the “Big Push” reflects a policy evolution. While India achieved food security through cereals, the focus is now on nutritional security, where animal-based proteins (milk, eggs, meat, fish) play a vital role. Statement 3 is correct. Livestock acts as a natural insurance for small and marginal farmers. While a drought can completely destroy a crop, livestock can often survive on stored fodder or be moved, providing a continuous income stream even when crops fail due to rainfall variability. This makes the sector a cornerstone of climate adaptation The budget’s emphasis on “Professionalization” and “Value Chains” aims to mitigate the volatility mentioned in Statement 1 by creating better storage, processing, and market linkages through FPOs. Incorrect Solution: D Statement 1 is incorrect. In fact, livestock and fisheries often face higher price volatility than food grains precisely because they lack a robust MSP framework and are highly perishable, making them sensitive to market demand-supply shocks. However, Statement 2 is correct: the “Big Push” reflects a policy evolution. While India achieved food security through cereals, the focus is now on nutritional security, where animal-based proteins (milk, eggs, meat, fish) play a vital role. Statement 3 is correct. Livestock acts as a natural insurance for small and marginal farmers. While a drought can completely destroy a crop, livestock can often survive on stored fodder or be moved, providing a continuous income stream even when crops fail due to rainfall variability. This makes the sector a cornerstone of climate adaptation The budget’s emphasis on “Professionalization” and “Value Chains” aims to mitigate the volatility mentioned in Statement 1 by creating better storage, processing, and market linkages through FPOs.

#### 9. Question

Consider the following statements regarding the strategic shift towards Livestock and Fisheries as drivers of agricultural growth:

• The livestock and fisheries sectors generally exhibit lower price volatility compared to traditional food grains due to the absence of a Minimum Support Price (MSP) framework.

• The shift toward these sectors represents a transition from “food security” focused on calories to “nutritional security” focused on proteins.

• Diversification into livestock is considered an effective “climate-resilient” strategy because animals are less susceptible to rainfall variability than rain-fed crops.

Which of the statements given above are correct?

• (a) 1 and 2 only

• (b) 1, 2 and 3

• (c) 1 and 3 only

• (d) 2 and 3 only

Solution: D

• Statement 1 is incorrect. In fact, livestock and fisheries often face higher price volatility than food grains precisely because they lack a robust MSP framework and are highly perishable, making them sensitive to market demand-supply shocks.

• However, Statement 2 is correct: the “Big Push” reflects a policy evolution. While India achieved food security through cereals, the focus is now on nutritional security, where animal-based proteins (milk, eggs, meat, fish) play a vital role.

• Statement 3 is correct. Livestock acts as a natural insurance for small and marginal farmers. While a drought can completely destroy a crop, livestock can often survive on stored fodder or be moved, providing a continuous income stream even when crops fail due to rainfall variability. This makes the sector a cornerstone of climate adaptation

• The budget’s emphasis on “Professionalization” and “Value Chains” aims to mitigate the volatility mentioned in Statement 1 by creating better storage, processing, and market linkages through FPOs.

Solution: D

• Question 10 of 10 10. Question 1 points Consider the following statements: Statement I: Western Disturbances play a critical role in the water security of North India during the summer months. Statement II: The snowfall brought by Western Disturbances in the Himalayas acts as the primary source for perennial rivers. Which one of the following is correct in respect of the above statements? (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I (c) Statement-I is correct but Statement-II is incorrect (d) Statement-I is incorrect but Statement-II is correct Correct Solution: A Statement I is correct. Even though Western Disturbances (WDs) occur in winter, their impact is felt throughout the year, especially regarding water security in the summer. The North Indian plains are heavily dependent on rivers like the Ganga, Yamuna, and Indus for irrigation and drinking water during the hot, dry months before the monsoon arrives. Statement II is correct and provides the explanation for Statement I. The precipitation from WDs in the higher altitudes of the Western Himalayas (J&K, Himachal, Uttarakhand) falls mostly as snow. This snow accumulates and feeds the Himalayan glaciers. During the spring and summer, this snow and ice melt, providing a steady discharge into the perennial river systems. Without the winter snowfall provided by WDs, these glaciers would recede faster, and the river levels would drop significantly during the summer, leading to severe water crises. Thus, the winter moisture brought from the Mediterranean region is “stored” as ice and released when the plains need it most. This connection highlights the ecological and economic importance of WDs beyond just immediate winter rainfall for crops. Incorrect Solution: A Statement I is correct. Even though Western Disturbances (WDs) occur in winter, their impact is felt throughout the year, especially regarding water security in the summer. The North Indian plains are heavily dependent on rivers like the Ganga, Yamuna, and Indus for irrigation and drinking water during the hot, dry months before the monsoon arrives. Statement II is correct and provides the explanation for Statement I. The precipitation from WDs in the higher altitudes of the Western Himalayas (J&K, Himachal, Uttarakhand) falls mostly as snow. This snow accumulates and feeds the Himalayan glaciers. During the spring and summer, this snow and ice melt, providing a steady discharge into the perennial river systems. Without the winter snowfall provided by WDs, these glaciers would recede faster, and the river levels would drop significantly during the summer, leading to severe water crises. Thus, the winter moisture brought from the Mediterranean region is “stored” as ice and released when the plains need it most. This connection highlights the ecological and economic importance of WDs beyond just immediate winter rainfall for crops.

#### 10. Question

Consider the following statements:

Statement I: Western Disturbances play a critical role in the water security of North India during the summer months.

Statement II: The snowfall brought by Western Disturbances in the Himalayas acts as the primary source for perennial rivers.

Which one of the following is correct in respect of the above statements?

• (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

• (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

• (c) Statement-I is correct but Statement-II is incorrect

• (d) Statement-I is incorrect but Statement-II is correct

Solution: A

• Statement I is correct. Even though Western Disturbances (WDs) occur in winter, their impact is felt throughout the year, especially regarding water security in the summer. The North Indian plains are heavily dependent on rivers like the Ganga, Yamuna, and Indus for irrigation and drinking water during the hot, dry months before the monsoon arrives.

• Statement II is correct and provides the explanation for Statement I. The precipitation from WDs in the higher altitudes of the Western Himalayas (J&K, Himachal, Uttarakhand) falls mostly as snow. This snow accumulates and feeds the Himalayan glaciers. During the spring and summer, this snow and ice melt, providing a steady discharge into the perennial river systems. Without the winter snowfall provided by WDs, these glaciers would recede faster, and the river levels would drop significantly during the summer, leading to severe water crises.

Thus, the winter moisture brought from the Mediterranean region is “stored” as ice and released when the plains need it most. This connection highlights the ecological and economic importance of WDs beyond just immediate winter rainfall for crops.

Solution: A

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