₹21.3 tn tax demands that will elude Centre
Syllabus: GS-III
Subject: Economy
Topic: Taxation
Context: In the budget speech, the finance minister proposed to withdraw a range of small tax demands under dispute dating back to 1962.
Synopsis:
Taxes outstanding increased by 35% in 2022-23.
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- This increase was primarily due to a sharp rise in undisputed demands.
(Tax demand outstanding is categorized by the duration of the demand and The duration categories include 10+ years, 5-10 years, 2-5 years, 1-2 years, and less than 1 year.)
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- Direct taxes are primarily driving recent undisputed demands.
- Taxpayers can dispute the amount demanded by the income tax department through an appeal process.
- Appeals can be raised before the Commissioner of Income Tax (Appeals), the Income Tax Appellate Tribunal (ITAT), and higher courts.
- Corporate and income tax contributes to over 90% of raised but not realized taxes.
Source: Mint
Ergosphere: making a black hole work
Syllabus: GS-III
Subject: Science & Technology
Topic: Space Technology.
Know-How Mechanism (Prelims):
- Rotating black holes have an area outside their event horizon known as the
- The term “ergo sphere” comes from the Greek word “ergon” meaning work.
- Scientists propose utilizing the ergo sphere to accelerate objects by sending them into it and allowing them to gain speed.
- Utilizing the ergosphere could potentially accelerate objects by sending them into it and allowing them to gain speed, resulting in the black hole losing some angular momentum.
Source: The Hindu
States to play a critical role in next-generation reforms: CEA Anantha Nageswaran
Syllabus: GS-III
Subject: Economic Development
Topic: Fiscal Policy and Budgeting.
Important points from the Discussion (Mains)
- Consultation with states crucial for next-gen reforms in health, education, MSMEs, land, and labour.
- Sustainable, moderate growth is favoured over unsustainable high growth for economic stability.
Important Terms (Prelims):
| Counter-Cyclical Fiscal Policy:
· It adapts to economic cycles by adjusting taxation and government spending. · During recessions, it focuses on reducing taxes and increasing spending to stimulate demand and foster economic recovery. · In contrast, during economic booms, the policy aims to raise taxes and cut public expenditure to prevent overheating and curb inflation. · Allowing unchecked expansion during booms can lead to inflation and exacerbate debt crises. · The goal is to maintain stability and balance in the economy by countering the effects of both recessionary and expansionary phases. |
Source: The Hindu
Disinvestment not a panacea for fiscal deficit: DIPAM Secretary Tuhin Kanta Pandey
Syllabus: GS-III
Subject: Economy
Topic: Fiscal Policy and Budgeting.
Context: The government didn’t specify a target for disinvestment receipts in the Interim Budget for 2024-25.
Key Reasons discussed:
- Shift in the notion that it’s primarily a tool to manage fiscal deficits. Instead, the focus is on the efficient management of public enterprises to benefit all shareholders.
- High disinvestment targets set in the past, but not achieved, have impacted the government’s credibility.
- Administrative ministries play a crucial role in the disinvestment process, but there’s a lack of urgency from them.
Institution in News (Prelims)
| DIPAM
It deals with all matters relating to management of Central Government investments in equity including disinvestment of equity in Central Public Sector Undertakings. The three major areas of its work relate to (1) Strategic Disinvestment and Privatisation. (2) Minority Stake Sales and (3) Capital Restructuring. All matters relating to the sale of Central Government equity through offer for sale or private placement or any other mode in the Central Public Sector Undertakings as well as strategic disinvestment of Central Public Sector Enterprises (CPSEs) is dealt with in DIPAM. DIPAM is a Department under the Ministry of Finance. |
Source: Indian Express
Geographical border should be the meeting point for enforcement agencies: Shah
Syllabus: GS-II
Subject: Polity
Topic: Institutions
Context: Home Minster Amit Shah’s speech at an international summit on legal education.
Key statements (For Mains)
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Source: Indian Express