Government had constituted a committee to draft a new direct tax law to replace the existing Income Tax Act,1961.The committee was headed by Akhilesh Ranjan.It has submitted its report to the government. The objective of the task force was to draft direct tax laws in line with the norms prevalent in other countries, incorporating international… Continue reading Committee submits report on replacing I-T Act with Direct Tax Code
Category: Factly – Indian Economy
This category contains all Current Affairs Factly Articles for Prelims, related to the Indian economy. You can find all relevant Economy updates on this page. This page is specifically useful for UPSC Prelims exam.
Govt exempts NBFCs, listed firms from debenture reserve requirements
Government has removed Debenture Redemption Reserve(DRR) requirement for listed companies,Non banking financial companies (NBFCs) and Housing finance companies(HFCs). At present,these companies have to set up a DRR to the tune of 25% of the value of their outstanding debentures.However,banking companies and financial institutions are already exempted from creating DRRs. This move will make it cheaper… Continue reading Govt exempts NBFCs, listed firms from debenture reserve requirements
RBI plans to formalise linking of new loans to repo rate
The Reserve Bank of India(RBI) is considering asking banks to link loans to an external benchmark such as the repo rate to improve transmission of policy rates and foster economic growth. Repo stands for ‘Repurchasing Option’.It refers to the rate at which commercial banks borrow money from the RBI. Currently,bank loans are linked to marginal… Continue reading RBI plans to formalise linking of new loans to repo rate
Explained: Bonds, yields, and inversions
The global economy continues to be hit as one big economy after another falters on economic growth.This increases the likelihood of a global recession in the coming future. As talk of a recession has started,Bond yields curve have also featured in the news both globally and within India as it most accurately reflects what investors… Continue reading Explained: Bonds, yields, and inversions
PSU banks kick off nationwide exercise to boost credit demand across sectors
Public sector banks(PSBs) has held a consultative process with their branch heads across the country to identify the issues and challenges faced by branches. This exercise was undertaken as part of a bottom-up approach to shape policies so that PSBs can act as a catalyst in making India a $5-trillion economy. The consultative process has… Continue reading PSU banks kick off nationwide exercise to boost credit demand across sectors
PM Economic Advisory Council: Need to set up GST Council-like body for public spending
The Economic Advisory Council to the Prime Minister(EAC-PM) has recommended a GST Council-like mechanism for the Centre and states to oversee public expenditure. EAC has said that fiscal consolidation issue as a reason behind this recommendation.The Centre’s fiscal deficit for 2019-20 is 3.3% of GDP. Hence,there are limits to public expenditure as there is a… Continue reading PM Economic Advisory Council: Need to set up GST Council-like body for public spending
MCA amends provisions related to Differential Voting Rights under Companies Act
The Ministry of Corporate Affairs has amended the provisions relating to Differential Voting Rights(DVRs) under the Companies Act. This objective of amendment is to enable promoters of Indian companies to retain control of their companies even as they raise equity capital from global investors. The amendments made includes raising the existing cap of 26 %… Continue reading MCA amends provisions related to Differential Voting Rights under Companies Act
Forex reserves at a new high of $430.57 bn
According to the latest RBI data,India’s foreign exchange reserves has reached a new high at USD 430 billion due to rise in foreign currency assets. Foreign exchange reserves are assets held on reserve by a central bank in foreign currencies.These reserves are used to back liabilities and influence monetary policy. These assets serve many purposes… Continue reading Forex reserves at a new high of $430.57 bn
India’s tax administration needs a mindset change: Nirmala Sitharaman
Union Finance Minister has held a meeting with the tax officials.The meeting was aimed to interact with tax officials and taxpayers. Addressing the meeting,she called for inculcating technology-driven approach in dealing with the matters of tax administration. She said that in order to prevent the tax-terrorism,we need to promote faceless assessment and curb the interaction… Continue reading India’s tax administration needs a mindset change: Nirmala Sitharaman
CBIC seeks inputs to combat ‘gift’ import duty loophole
Recently,the Mumbai Customs department has stopped clearing parcels under the gifts and samples route. According to the Foreign Trade Act,gift items of a value of up to ₹5,000 received from foreign countries to people residing in India are exempted from customs duty. However,there is no cap on the number of gifts an individual can receive.… Continue reading CBIC seeks inputs to combat ‘gift’ import duty loophole
