GK One-Liners

What: The Income Tax Act, 2025 came into force on 1 April 2026, replacing the Income Tax Act, 1961. The old Act had 819 sections across 47 chapters; the new Act consolidates this into 536 sections across 23 chapters, making the law shorter and easier to navigate. It is administered by the Central Board of Direct Taxes (CBDT) under the Ministry of Finance (MoF).

How: The most significant structural change is the replacement of the dual “Previous Year + Assessment Year” framework with a single unified concept called “Tax Year,” reducing definitional confusion. The new Act retains existing tax slabs and rates but reorganises provisions for clarity. House Rent Allowance (HRA) exemption at 50% has been extended to four additional cities — Bengaluru, Pune, Hyderabad, and Ahmedabad — alongside the existing metros.

Why: This is a landmark fiscal reform and a high-yield Prelims item. Expect MCQs on the number of sections/chapters, the effective date, the “Tax Year” concept, and the CBDT’s role. For Mains GS-III, it links to direct tax reform, ease of doing business, and the rationalisation of India’s legislative framework.

What: The Government of India has retained the Consumer Price Index (CPI) inflation target at 4%, with a tolerance band of 2%–6%, for the five-year period from 1 April 2026 to 31 March 2031. This notification was issued by the Department of Economic Affairs (DEA) under the Ministry of Finance, as mandated under Section 45ZA of the Reserve Bank of India Act, 1934.

How: The inflation target is the legal mandate for the Monetary Policy Committee (MPC) of the RBI. The MPC, a six-member body (three RBI officials + three external members appointed by the Government), sets the repo rate with the primary objective of achieving this 4% CPI target. If inflation breaches the tolerance band for three consecutive quarters, the RBI must report to the Government explaining the failure.

Why: This is a perennial UPSC topic. Prelims frequently tests the target rate (4%), the band (2–6%), the legal provision (Section 45ZA, RBI Act 1934), and the MPC’s composition. For Mains GS-III, it connects to monetary policy transmission, inflation management, and the RBI’s autonomy-accountability balance.

What: The 33rd edition of Energy Statistics India 2026, published by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI), reveals India’s total Renewable Energy (RE) potential at 47,04,043 Megawatts (MW) as of March 2025. Solar energy accounts for approximately 71% of this potential (33,43,378 MW), followed by Wind (11,63,856 MW) and Large Hydro (1,33,410 MW).

How: The top six RE-rich states by share of national potential are: Rajasthan (23.70%), Maharashtra (14.26%), Gujarat (9.10%), Andhra Pradesh (9.10%), Karnataka (8.59%), and Madhya Pradesh (8.09%). Total Primary Energy Supply (TPES) grew 2.95% to 9,32,816 Kilo Tonnes of Oil Equivalent (KToE) in FY 2024–25, reflecting rising energy demand. Credit flow to the energy sector grew six-fold, from ₹1,688 crore (2021) to ₹10,325 crore (2025).

Why: Prelims MCQs frequently test rankings of RE-rich states, solar dominance share, and MoSPI-published reports. For Mains GS-III (Energy, Infrastructure), this data underpins discussions on India’s 500 GW non-fossil target by 2030, state-wise RE distribution, and energy financing gaps. Rajasthan topping the list — not Gujarat — is a common distractor trap.

What: The Ministry of Defence (MoD) has signed a ₹1,950 crore contract with Bharat Electronics Limited (BEL) for two Mountain Radar systems for the Indian Air Force (IAF). The contract falls under the “Buy (Indian–IDDM)” category, where IDDM stands for Indigenously Designed, Developed and Manufactured — the highest preference tier in India’s defence procurement hierarchy. BEL is a Navratna Public Sector Enterprise (PSE) under MoD.

How: The Mountain Radar was designed by the Electronics and Radar Development Establishment (LRDE) under the Defence Research and Development Organisation (DRDO) and will be manufactured by BEL. The system is specifically engineered to detect aircraft, drones, and cruise missiles in high-altitude terrain — addressing a critical surveillance gap along India’s northern and north-eastern borders. It integrates into the IAF’s broader Integrated Air Command and Control System (IACCS).

Why: This is a strong Prelims item: test-ready anchors include BEL’s Navratna status, the IDDM category definition, LRDE’s role under DRDO, and the ₹1,950 crore figure. For Mains GS-III (Defence, Internal Security), it feeds into discussions on Aatmanirbhar Bharat in defence, indigenisation targets, and high-altitude border surveillance in the context of the India–China LAC situation.

What: Garden Reach Shipbuilders and Engineers (GRSE), Kolkata, has delivered three warships in a single event: INS Dunagiri (Yard 3023), the second frigate of the Nilgiri-class under Project 17A; INS Sanshodhak (Yard 3028), the fourth and final Survey Vessel Large (SVL); and Agray, the fourth of eight Anti-Submarine Warfare Shallow Water Craft (ASW-SWC). This brings GRSE’s cumulative warship delivery tally to 118, of which 80 have been built for the Indian Navy.

How: All three warships were designed by the Warship Design Bureau (WDB) of the Indian Navy — the in-house design authority. Project 17A frigates are stealthier and more advanced than their Project 17 (Shivalik-class) predecessors, incorporating improved stealth features, advanced weapons, and sensors. INS Sanshodhak is the last of the SVL series, completing GRSE’s survey vessel programme for the Navy.

Why: GRSE’s cumulative tally (118 warships), its status as a leading defence shipyard, and the distinctions between Project 17A vs. Project 17 are common Prelims hooks. For Mains GS-III, it supports arguments on indigenous naval shipbuilding, the role of DPSUs (Defence Public Sector Undertakings) in Aatmanirbhar Bharat, and India’s blue-water navy ambitions. Note: Dunagiri is also a peak name in the Garhwal Himalayas — a geography distractor used in past UPSC questions.

What: The Government has kept interest rates on small savings schemes unchanged for Q1 FY27 (April–June 2026). Key rates: Sukanya Samriddhi Yojana (SSY) at 8.2% (highest among popular schemes); Public Provident Fund (PPF) at 7.1%; Senior Citizens Savings Scheme (SCSS) at 8.2%; National Savings Certificate (NSC) at 7.7%; and Kisan Vikas Patra (KVP) at 7.5% (doubles in 115 months). Rates are notified quarterly by the Department of Economic Affairs (DEA), MoF.

How: Small savings rates are benchmarked to government securities (G-secs) yields of comparable maturity, with a spread. SSY qualifies for EEE (Exempt–Exempt–Exempt) tax status — contributions (₹250–₹1.5 lakh/year), interest accrued, and maturity proceeds are all tax-exempt. PPF has a 15-year lock-in with a ₹1.5 lakh annual deposit ceiling. The rates are reviewed quarterly, though in practice they have remained broadly stable over recent years.

Why: SSY’s 8.2% rate, its EEE status, and its eligibility criteria (girl child below 10 years) are high-frequency Prelims questions. KVP’s doubling period (115 months) and SCSS’s 8.2% rate are also tested. For Mains GS-III (Mobilisation of Resources), small savings schemes represent a key instrument for household savings mobilisation and government borrowing outside market debt. Confusing SSY rate (8.2%) with PPF (7.1%) is a classic trap.