Contents1 2 Synopsis:3 Background:4 About Fiscal Deficit:5 Rationale for raising government expenditure and deviating from FD target:6 Way Forward: Synopsis: The pandemic time demands enhanced government expenditure to support the vulnerable masses and ensuring their survival. Considering this, the government should enhance the spending on physical and human capital formation without worrying about a rising… Continue reading Rising fiscal deficit and Expenditure Need during Pandemic
Tag: ECO_0
India needs to be cautious before joining Global Minimum Tax rate
Synopsis: A Global minimum tax rate is beneficial for the US. But India need to rethink before joining such international tax proposals Contents1 Introduction:2 Base Erosion and Profit Shifting (BEPS) Programme:3 Challenges to BEPS Programme:4 The OECD policy to solve BEPS issues:5 Concerns with the OECD policy proposal:6 Intermediate Taxation of Big Tech:7 The path to… Continue reading India needs to be cautious before joining Global Minimum Tax rate
Strengthening the National small savings schemes
Synopsis: The government need to implement the recommendation of high-level committees in determining the interest rate of small savings schemes Contents1 Background2 Types of Small saving schemes in India3 Significance of Small Saving schemes;4 What is the way forward? Background Recently, the government notified on reducing the interest rates on National small savings schemes. However,… Continue reading Strengthening the National small savings schemes
What is “global minimum corporate income tax”?
What is the News? The US Treasury Secretary has urged the world’s 20 advanced nations to move in the direction of adopting a Global minimum corporate income tax. Contents1 What is the Global minimum corporate income tax?2 Why this Global Minimum Corporate Tax Rate move?3 What is the US proposal?4 India’s Stand on Global Minimum… Continue reading What is “global minimum corporate income tax”?
“HSN code” Made Mandatory for Certain Category of GST Taxpayers
What is the News? The Government makes the 6 digit HSN (Harmonized System of Nomenclature) code mandatory for a GST taxpayer having a turnover of more than Rs 5 crore in a financial year. This rule comes into effect from April 1,2021. About HSN Code: The HSN Code is a six-digit identification code. The World… Continue reading “HSN code” Made Mandatory for Certain Category of GST Taxpayers
The New EPF Tax Rules Should be Re-examined
Synopsis: A new EPF Tax Rules under EPF(Employees Provident Fund) contributions is under the proposal. The intended objective is to prevent abuse of process by HNIs (High net individuals), however, there are some concerns that demand re-examination. Contents1 Background2 What changes have been made?3 The rationale behind the proposal:4 Concerns with New EPF Tax Rules… Continue reading The New EPF Tax Rules Should be Re-examined
Discrimination in taxing provident fund (PF)
Synopsis: The Finance Minister has enhanced the Provident Fund(PF) limit up to 5 lakhs from the previously proposed 2.5 lakh. This is a discriminatory proposal for taxing PF and should be reconsidered. Contents1 Background:2 Current Threshold limits for Provident Fund:3 Concerns with such a move4 Way Ahead: Background: The finance bill 2021 was passed with… Continue reading Discrimination in taxing provident fund (PF)
Similarities between Disinvestment and fiscal deficit
Synopsis: Selling of Public assets (Disinvestment) has similar macroeconomic results to fiscal deficit. Both increase wealth inequalities in the society and hence should be avoided. Contents1 Background2 Fiscal Strategy of selling Public Sector Undertakings:3 Relationship between Disinvestment and Fiscal Deficit:4 How does fiscal deficit increase wealth inequality?5 How selling of public assets increases wealth inequality?6… Continue reading Similarities between Disinvestment and fiscal deficit
What is FDI or Foreign Direct Investment?
What is the News? The Rajya Sabha has passed the Insurance (Amendment) Bill, 2021. The Bill seeks to raise the FDI in the insurance sector to 74% from the current 49%. Click Here to Read about Insurance in Amendment Bill,2021 About Foreign Direct Investment(FDI): Foreign Direct Investment(FDI) is the medium for acquiring ownership of assets… Continue reading What is FDI or Foreign Direct Investment?
Why Taxes on Fuel may increase in the future?
Synopsis: Due to economic pressure, the center and states may increase taxation on fuel. Contents1 The disparity between the taxation powers of the centre and states2 Fiscal Independence of states further reduced after GST3 Why fuel tax will be increasing?4 Impacts of rising in fuel prices: The disparity between the taxation powers of the centre… Continue reading Why Taxes on Fuel may increase in the future?
