MAJOR STIMULUS PACKAGE FOR MSMES, TDS AND TCS REDUCED
Why in news? The Union Finance Minister on 13th May 2020, announced a Rs. 3 lakh crore collateral free loan scheme for businesses, especially micro, small and medium enterprises (MSMEs), as part of a Rs. 20-lakh-crore economic stimulus package to deal with the COVID-19 pandemic. The rates of tax deduction at source (TDS) and tax collection […]
GOVT. IDENTIFIES SECTORS FOR TAX SOPS
Why in news? The government has identified close to a dozen sectors, ranging from capital goods, defence, pharma and electronics to labour-intensive ones such as textiles and food where it is considering proposals for tax concessions. It is also pushing for land and procedural reforms to attract investment as part of a goal to be […]
BOND YIELDS RISE AS GOVT. EXPANDS BORROWING PLAN
Why in news? The yield on the most-traded 10-year government bond spiked 20 bps (basis points) on 11th May 2020, after the government announced it would increase its market borrowings by more than ₹4 lakh crore for FY21. Intraday, yield rose 27 bps, the sharpest intraday surge since February 2017. As per the new revised FY21 […]
NO INCREASE IN LEASE RENT OF SEZ UNITS
Why in news? The government on 11th May said the lease rent for units in the government-owned Special Economic Zones (SEZs) will not be increased for 2020-21 due to the COVID-19 pandemic. This move which will provide relief to these facilities in SEZ. Details The commerce and industry ministry said that after consulting the proposal with […]
INDIA’S UNEMPLOYMENT RATE DROPPED: CMIE
Why in news? India’s unemployment rate dropped to 23.97% on May 10 from 27.11% on May 3, as the government lifted some curbs on economic activity, including farming, after a month-long lockdown. Unemployment Rate Survey results: Urban The urban jobless rate, on the other hand, declined more modestly, underlining the fact that cities are still […]
CENTRE PLANS TO CHECK CHINESE FPI FLOWS
Why in news? After foreign direct investment (FDI), the government is now looking to clamp down on unbridled access of Chinese portfolio investors into the Indian market as it seeks to plug a possible loophole that investors from across the border can use to acquire shares in listed domestic companies. Details The department of economic […]
SUSPEND LABOUR LAWS FOR 2-3 YEARS: EMPLOYERS’ ASSOCIATIONS
Why in news? The Representatives of 12 employers’ associations and industry bodies on 9th May asked the government to suspend labour laws for the next two to three years to help industry come out of the present crisis. The Labour and Employment Ministry will handle by being sympathetic to the requirements of the industry and would […]
CENTRE AND STATES ABSORB CRUDE OIL PRICE DROP BENEFITS
Why in news? The Centre’s steep tax hike on petrol and diesel may net it a huge Rs 1.7 lakh crore in additional tax revenue this fiscal year. Since March, tax-starved states such as Delhi, Tamil Nadu, Maharashtra, Goa, Karnataka, West Bengal, Assam, Punjab and Haryana have sharply hiked Value Added Taxes (VAT) on fuel […]
GOVT FAST-TRACKS NEW DEFINITION OF MSMES
Why in news? The government is fast-tracking the move to amend the definition of micro, small and medium enterprises (MSMEs) to allow these entities to grow in size. This plan to redefine MSMEs has been on the works for months and is likely a part of the stimulus package that will be announced in the […]
GOLD ETFS SEE INFLOWS, JEWELLERY TAKES A HIT
Why in news? Gold investments in the form of gold backed exchange traded funds (ETFs) witnessed a huge jump in the first three months of 2020, even as jewellery demand took a significant hit on account of the global COVID-19 pandemic that led to lockdowns in most countries. As per the latest Gold Demand Trends […]