Forwarded from Commerce Optional (UPSC-IAS)
βΆοΈTAXATION ON VIRTUAL DIGITAL ASSETS
π΅To take effect from 1st April, 2022, under Section 115BBH of the Income Tax Act, any income from transfer
of any virtual digital asset shall be taxed at the rate of 30%.
π΅Effective from 01 July 2022, 1% TDS (Tax Deducted at Source) will be deducted under Section 194S on
payment made above a monetary threshold in relation to transfer of virtual digital assets.
@commerceoptional
π΅To take effect from 1st April, 2022, under Section 115BBH of the Income Tax Act, any income from transfer
of any virtual digital asset shall be taxed at the rate of 30%.
π΅Effective from 01 July 2022, 1% TDS (Tax Deducted at Source) will be deducted under Section 194S on
payment made above a monetary threshold in relation to transfer of virtual digital assets.
@commerceoptional
Understanding SEBI Rules on Passive Funds
The Securities and Exchange Board of India (SEBI) recently issued a circular on passive funds covering matters related to transparency, liquidity and operational aspects of exchange-traded funds (ETFs) and index funds.
What are Passive Funds?
A passive fund is an investment vehicle that tracks a market index, or a specific market segment, to determine what to invest in.
Unlike with an active fund, the fund manager does not decide what securities the fund takes on.
This normally makes passive funds cheaper to invest in than active funds, which require the fund manager to spend time researching and analysing opportunities to invest in.
Tracker funds, such as ETFs (exchange traded funds) and index funds fall under the banner of passive funds.
What is a passive ELSS scheme?
Passive funds mimic an underlying index. By contrast active funds are actively managed by fund managers.
The SEBI has now introduced a passive equity-linked saving schemes (ELSS) category, which will give taxpayers another investment option to avail of tax benefits.
According to the circular, the passive ELSS scheme will be based on any index comprising equity shares from the top 250 companies in terms of market capitalization.
Beginning 1 July, a fund house will be able to either have an active ELSS scheme or a passive ELSS scheme, but not both.
The Securities and Exchange Board of India (SEBI) recently issued a circular on passive funds covering matters related to transparency, liquidity and operational aspects of exchange-traded funds (ETFs) and index funds.
What are Passive Funds?
A passive fund is an investment vehicle that tracks a market index, or a specific market segment, to determine what to invest in.
Unlike with an active fund, the fund manager does not decide what securities the fund takes on.
This normally makes passive funds cheaper to invest in than active funds, which require the fund manager to spend time researching and analysing opportunities to invest in.
Tracker funds, such as ETFs (exchange traded funds) and index funds fall under the banner of passive funds.
What is a passive ELSS scheme?
Passive funds mimic an underlying index. By contrast active funds are actively managed by fund managers.
The SEBI has now introduced a passive equity-linked saving schemes (ELSS) category, which will give taxpayers another investment option to avail of tax benefits.
According to the circular, the passive ELSS scheme will be based on any index comprising equity shares from the top 250 companies in terms of market capitalization.
Beginning 1 July, a fund house will be able to either have an active ELSS scheme or a passive ELSS scheme, but not both.
β
Credit Default Swaps (CDS)
Source: Financial Express
β Context: Securities and exchange board of India has allowed alternative investment funds) to participate in credit default swaps (CDS) as protection for both buyers and sellers.
Under the new norm, Category-I and Category-II AIFs can buy CDS on underlying investment in debt securities only for the purpose of hedging, while Category-III AIFs can purchase CDS for hedging or otherwise, within permissible leverage
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Source: Financial Express
β Context: Securities and exchange board of India has allowed alternative investment funds) to participate in credit default swaps (CDS) as protection for both buyers and sellers.
Under the new norm, Category-I and Category-II AIFs can buy CDS on underlying investment in debt securities only for the purpose of hedging, while Category-III AIFs can purchase CDS for hedging or otherwise, within permissible leverage
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Also Join @civilservicegurukul
Financial Express
Sebi specifies norms for AIF investment in CDS
AIFs shall report details of CDS transaction to the custodian, by the next working day.
Sovereign Green Bonds
Context: The Pension Fund Regulatory and Development Authority (PFRDA) will allow pension funds to invest in sovereign green bonds that the government is expected to issue in the second half of the current financial year.
What are Sovereign Green Bonds?
Sovereign Green Bonds are government-issued bonds used to fund projects that have positive environmental impacts and contribute to sustainability goals.
It was announced in the Union Budget 2022-23 and the framework for SGrBs was issued by the Ministry of Finance in 2022. Investors in these bonds do not bear project-related risks.
Last year, the government raised Rs 16,000 crore from the issuance of Sovereign Green Bonds to fund projects aimed at reducing carbon emissions. Currently, there are 10 pension fund managers under the National Pension System, and the move aims to encourage investment in environmentally friendly projects.
@economyupsc
About PFRDA:
Pension Fund Regulatory and Development Authority (Statutory organization; founded 2003; HQ: New Delhi) is the regulatory body for the overall supervision and regulation of pensions in India. It operates under the jurisdiction of the Ministry of Finance.
Context: The Pension Fund Regulatory and Development Authority (PFRDA) will allow pension funds to invest in sovereign green bonds that the government is expected to issue in the second half of the current financial year.
What are Sovereign Green Bonds?
Sovereign Green Bonds are government-issued bonds used to fund projects that have positive environmental impacts and contribute to sustainability goals.
It was announced in the Union Budget 2022-23 and the framework for SGrBs was issued by the Ministry of Finance in 2022. Investors in these bonds do not bear project-related risks.
Last year, the government raised Rs 16,000 crore from the issuance of Sovereign Green Bonds to fund projects aimed at reducing carbon emissions. Currently, there are 10 pension fund managers under the National Pension System, and the move aims to encourage investment in environmentally friendly projects.
@economyupsc
About PFRDA:
Pension Fund Regulatory and Development Authority (Statutory organization; founded 2003; HQ: New Delhi) is the regulatory body for the overall supervision and regulation of pensions in India. It operates under the jurisdiction of the Ministry of Finance.
Advance Authorisation Scheme
Context: The Directorate General of Foreign Trade (DGFT) has implemented the Advance Authorisation Scheme under the Foreign Trade Policy, which allows duty-free import of inputs for export purposes. The eligibility of inputs is determined by Sector-specific Norms Committees based on input-output norms.
To streamline the norms fixation process, the DGFT has created a user-friendly and searchable database of Ad-hoc Norms fixed in previous years. These norms can be used by any exporter without requiring a Norms Committee review, as outlined in the Foreign Trade Policy 2023.
This trade facilitation measure simplifies the advance authorisation and norms fixation process, leading to shorter turnaround times for exporters, improved ease of doing business, and reduced compliance burden.
@economyupsc
About Advance Authorization Scheme:
It allows the duty-free import of inputs, which are physically incorporated into an export product.
In addition to any inputs, packaging material, fuel, oil, and catalyst which is consumed/utilized in the process of production of export product, is also allowed.
DGFT provides a sector-wise list of Standard Input-Output Norms (SION)under which the exporters may choose to apply.
Advance Authorization is valid for 12 months from the date of issue of such Authorization.
Context: The Directorate General of Foreign Trade (DGFT) has implemented the Advance Authorisation Scheme under the Foreign Trade Policy, which allows duty-free import of inputs for export purposes. The eligibility of inputs is determined by Sector-specific Norms Committees based on input-output norms.
To streamline the norms fixation process, the DGFT has created a user-friendly and searchable database of Ad-hoc Norms fixed in previous years. These norms can be used by any exporter without requiring a Norms Committee review, as outlined in the Foreign Trade Policy 2023.
This trade facilitation measure simplifies the advance authorisation and norms fixation process, leading to shorter turnaround times for exporters, improved ease of doing business, and reduced compliance burden.
@economyupsc
About Advance Authorization Scheme:
It allows the duty-free import of inputs, which are physically incorporated into an export product.
In addition to any inputs, packaging material, fuel, oil, and catalyst which is consumed/utilized in the process of production of export product, is also allowed.
DGFT provides a sector-wise list of Standard Input-Output Norms (SION)under which the exporters may choose to apply.
Advance Authorization is valid for 12 months from the date of issue of such Authorization.
πPrime Minister launches βVishwakarmaβ Scheme for traditional artisans
β The Prime Minister launched the Pradhan Mantri Vishwakarma Yojana to support and empower traditional artisans and craftspeople in India.
β The scheme aims to preserve and promote the rich cultural heritage of traditional crafts and assist artisans in transitioning to the formal economy and integrating them into global value chains by providing recognition, skill upgradation, toolkit incentives, collateral-free credit support, and marketing support to eligible beneficiaries.
β Under the scheme, eligible beneficiaries will be registered free of charge through Common Services Centers using a biometric-based PM Vishwakarma portal.
β They will receive recognition through a PM Vishwakarma certificate and ID card, as well as skill upgradation involving basic and advanced training.
β Toolkit incentives of βΉ15,000 will also be provided, along with collateral-free credit support up to βΉ1 lakh (first tranche) and up to βΉ2 lakh (second tranche) at a concessional interest rate of 5%.
β Incentives for digital transactions and marketing support will also be provided.
β The
β The Prime Minister launched the Pradhan Mantri Vishwakarma Yojana to support and empower traditional artisans and craftspeople in India.
β The scheme aims to preserve and promote the rich cultural heritage of traditional crafts and assist artisans in transitioning to the formal economy and integrating them into global value chains by providing recognition, skill upgradation, toolkit incentives, collateral-free credit support, and marketing support to eligible beneficiaries.
β Under the scheme, eligible beneficiaries will be registered free of charge through Common Services Centers using a biometric-based PM Vishwakarma portal.
β They will receive recognition through a PM Vishwakarma certificate and ID card, as well as skill upgradation involving basic and advanced training.
β Toolkit incentives of βΉ15,000 will also be provided, along with collateral-free credit support up to βΉ1 lakh (first tranche) and up to βΉ2 lakh (second tranche) at a concessional interest rate of 5%.
β Incentives for digital transactions and marketing support will also be provided.
β The
Ministry of Micro, Small & Medium Enterprise is the nodal ministry for the scheme.Forwarded from Civil Service Gurukul (CA Dhananjay Ojha)
YouTube
ΰ€ΰ€°ΰ€ΰ€ ΰ€Ήΰ₯ ΰ€ͺΰ₯ΰ€°ΰ€ΰ€ΰ€‘ Aarambh Hai Prachand β Gulaal (Piyush Mishra)
Forwarded from Civil Service Gurukul (CA Dhananjay Ojha)
πMotivational song for students
Angel tax for start-ups
β 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).
β The directive comes in response to concerns raised by start-ups regarding scrutiny notices for angel tax.
β The CBDT directive outlines two scenarios for recognized start-up companies:
β First, if the case is selected under scrutiny solely for the applicability of Section 56(2)(viib) of the Income-tax Act, no verification is required during the assessment proceedings, and the contention of the recognized start-up on the issue will be accepted.
Second, if the case is selected under scrutiny for multiple issues, including Section 56(2)(viib) of the Income-tax Act, the issue will not be pursued during the assessment proceedings.
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by CA Dhananjay Ojha
β 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).
β The directive comes in response to concerns raised by start-ups regarding scrutiny notices for angel tax.
β The CBDT directive outlines two scenarios for recognized start-up companies:
β First, if the case is selected under scrutiny solely for the applicability of Section 56(2)(viib) of the Income-tax Act, no verification is required during the assessment proceedings, and the contention of the recognized start-up on the issue will be accepted.
Second, if the case is selected under scrutiny for multiple issues, including Section 56(2)(viib) of the Income-tax Act, the issue will not be pursued during the assessment proceedings.
Join π @economyupsc
by CA Dhananjay Ojha
India will become the third-largest economy globally by 2030, with a forecasted nominal GDP rise from $3.5 trillion in 2022 to $7.3 trillion in 2030.
Currently, India holds the fifth position, with the United States, China, Germany, and Japan ahead.
S&P Global emphasizes the importance of India becoming a global manufacturing hub and highlights the need for a robust logistics framework, upskilling of workers, and increased female workforce participation.
The agency also expects growth in Indiaβs high-growth startup ecosystem, especially in financial and consumer technology, and foresees expansion in the automotive sector.
Currently, India holds the fifth position, with the United States, China, Germany, and Japan ahead.
S&P Global emphasizes the importance of India becoming a global manufacturing hub and highlights the need for a robust logistics framework, upskilling of workers, and increased female workforce participation.
The agency also expects growth in Indiaβs high-growth startup ecosystem, especially in financial and consumer technology, and foresees expansion in the automotive sector.