Consider the following statements regarding the Consumer Price Index for Urban Non-Manual Employees (CPI-UNME): 1. The CPI-UNME is primarily used for computing dearness allowance for government employees in India. 2. It is used under the Income Tax Act to determine capital gains. 3. Data for CPI-UNME is collected monthly across selected centres in India with a time lag of two weeks. Which of the statements given above is/are correct? |ForumIAS

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: B

Notes:

Explanation:

CPI-UNME is not primarily used for computing DA of government employees. It is used for determining DA for employees of some foreign companies operating in India like embassies, airlines, and financial institutions.
CPI-UNME is used under the Income Tax Act to determine capital gains, particularly for indexing the cost of acquisition in long-term capital gains.
Data is collected for 365 commodities at 59 centres, monthly, with a two-week time lag.

Source: Indian economy (Dr.Ramesh Singh)