Q1. Which of the following statements about the Olympic Games is correct?
(a) The modern Olympic Games were first held in Athens, Greece, in 1900.
(b) The Olympic torch is traditionally lit in Olympia, Greece, and then transported by land to the host city.
(c) The Summer and Winter Olympics are held every four years, with a two-year gap between them.
(d) The Olympic Games include only athletic competitions; no cultural or artistic events are part of the program.
Ans: (b)
Explanation:
- Option B This statement is correct. The tradition of lighting the Olympic flame in Olympia, Greece, and then transporting it by various means to the host city is an integral part of the Olympic Games. The torch relay symbolizes the connection between the ancient and modern Olympic Games.
- Option A This statement is incorrect. The modern Olympic Games were first held in Athens, Greece, but in 1896, not 1900.
- Option C This statement is incorrect. The Summer and Winter Olympics are held every four years, but there is a two-year gap between the two types of Games. For example, if there are Summer Olympics in one year, the Winter Olympics will be held two years later, and then there will be another two-year gap before the next Summer Olympics.
- Option D This statement is incorrect. The Olympic Games include a wide range of athletic competitions, but they also encompass cultural and artistic events, especially during the opening and closing ceremonies. These ceremonies often feature artistic performances and cultural showcases from the host country.
Q2. With reference to Olympics, consider the following statements:
- The Olympic Games are an international multi-sport event that is held every four years.
- The Olympic Games were founded in ancient Rome in 776 BC.
- The Olympic Games were revived in the modern era in 1900 by Pierre de Coubertin.
How many of the above given statements are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
Ans: (a)
Explanation:
- The Olympic Games are an international multi-sport event that is held every four years. The first modern Olympics were held in Athens, Greece in 1896. The Olympic Games were founded in ancient Greece in 776 BC, but they were discontinued in the 4th century AD. The modern Olympic Games were revived by Pierre de Coubertin in 1896.
- The Olympic Games are one of the most popular sporting events in the world. Millions of people watch the Olympic Games on television and online. The Olympic Games are a celebration of athleticism and sportsmanship.
Q3. Consider the following statements regarding Angel tax:
- Angel tax deter the use of unaccounted money through the subscription of shares of a closely held company at a value that is higher than the fair market value of the firm’s shares.
- Angel tax was introduced through an amendment of the Income-tax Act.
- Investment in unlisted Indian start-ups by any foreign country attracts Angel Tax.
How many of the above statements are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
Ans: (b)
Explanation:
- Statement 3 is incorrect.
- Investors from 21 countries including the US, the UK, France, Australia, Japan have been exempted from the levy of angel tax for investment in unlisted Indian startups. Countries like Singapore, Netherlands and Mauritius, which constitute the major chunk of foreign direct investment in India, have not been included in the exemption list.
- What are the notified categories of exempted investors from angel tax?
- Central Board of Direct Taxes (CBDT) listed excluded entities which include those registered with Sebi as Category-I FPI, Endowment Funds, Pension Funds and broad-based pooled investment vehicles where the number of investors in such vehicle or fund is more than 50, and the residents of 21 specified nations, including the US, UK, Australia, Germany and Spain.
- Other nations mentioned in the notification are Austria, Canada, Czech Republic, Belgium, Denmark, Finland, Israel, Italy, Iceland, Japan, Korea, Russia, Norway, New Zealand and Sweden.
What is angel tax? Which startups were excluded from its levy?
- The Finance Act, 2023, had amended Section 56(2)(viib) of the Income-tax Act.
- The provision, colloquially known as the ‘angel tax’ was first introduced in 2012 to deter the generation and use of unaccounted money through the subscription of shares of a closely held company at a value that is higher than the fair market value of the firm’s shares.
- The provision stated that when an unlisted company, such as a start-up, receives equity investment from a resident for issue of shares that exceeds the face value of such shares, it will be counted as income for the start-up and be subject to income tax under the head ‘Income from other Sources’ for the relevant financial year.
Q4. What is the Angel Tax, and how does it affect Indian startups?
(a) Angel Tax is a tax imposed on angel investors who provide funding to startups in India. It has a negative impact on the startup ecosystem as it discourages investment in the sector.
(b) Angel Tax is a tax imposed on startups who receive funding from angel investors in India. It has a positive impact on the startup ecosystem as it ensures that only genuine startups receive funding.
(c) Angel Tax is a tax imposed on startups who receive funding from venture capital firms in India. It has a neutral impact on the startup ecosystem as it does not discriminate against startups based on the source of funding.
(d) Angel Tax is a tax imposed on individuals who invest in the stock market in India. It has no impact on the startup ecosystem.
Ans: (a)
Explanation:
- Context: The Central Board of Direct Taxes (CBDT) has issued a directive to its officers, instructing them not to carry out scrutiny of angel tax provisions for start-ups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).
- The directive comes in response to concerns raised by start-ups regarding scrutiny notices for angel tax.
- Angel tax is income tax levied at a rate of 30.6% on unlisted companies that issue shares to investors at a price higher than their fair market value.
- The Finance Act 2023 amended Section 56(2)(viib) of the Income-tax Act, colloquially known as the ‘angel tax,’ to include foreign investors. DPIIT-recognized start-ups are exempt from the angel tax levy.
Q5. Consider the following statements:
- The Open Acreage Licensing Policy (OALP) was launched in 2017 to accelerate exploration and production (E&P) activities in India.
- OALP allows companies to select exploration blocks on their own, without waiting for a formal bid round from the government
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)
Explanation:
- Context: The Ministry of Petroleum & Natural Gas in India is offering 8 blocks for hydrocarbon exploration and production under the Open Acreage Licensing Policy (OALP) bid round IX.
- Three of the blocks are in the Cauvery basin, two in Saurashtra, two in Assam Shelf, and one in the Cambay basin.
- The Open Acreage Licensing Policy (OALP) was launched in June 2017 to accelerate exploration and production (E&P) activities in India. OALP allows companies to select exploration blocks on their own, without waiting for a formal bid round from the government.
