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Section 29 of the RBI Act, 1934 confers a specific tax exemption on the Reserve Bank in respect of its banknotes. Which exemption does Section 29 grant?
Answer & Solution
Correct answer: C.
1. Section 29 of the RBI Act provides a specific tax exemption.
2. The Bank is not liable to any stamp duty under the Indian Stamp Act, 1899 in respect of banknotes it issues.
3. The exemption is narrow and confined to stamp duty on banknotes.
4. Income tax, GST and customs duty exemptions are not granted by Section 29.
_Source: ICSI CS Executive Paper 7 (Economic, Business and Commercial Laws) — Lesson 1: Reserve Bank of India Act, 1934, pp. 8-21._
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