The World Opinion

Category: Economy

  • Canara Bank Clocks 10.5% Jump In Q1 Net Profit At Rs 3,905 Crore | Companies News

    New Delhi: Canara Bank on Thursday reported a 10.5 per cent jump in net profit for the April-June quarter of the current financial year to Rs 3,905 crore, compared to the corresponding figure of Rs 3,534 crore in the same quarter of last year. The bank’s net interest income (NII) during the first quarter increased 6 per cent to Rs 9,166 crore from Rs 8,666 crore in the same period last year.

    Its operating profit (before provisions and contingencies) remained flat at around Rs 7,616 crore in the quarter. There was an improvement in the asset quality of the bank during the quarter with gross non-performing assets (NPA) coming down to 4.14 per cent of total loans from 5.15 per cent in the year-ago period.

    The net NPA ratio of the lender declined to 1.24 per cent from 1 1.57 per cent in Q1FY24. In absolute terms, the gross NPA of the bank stood at Rs 40,356.38 crore as on June 30, 2024, compared to Rs 45,727.37 crore as on June 30, 2023.

  • ‘How To Know If I’m Going To Be Sick In Next 7 Days?’: Indian Manager’s Sick Leave Policy Sparks Debate | Companies News

    New Delhi: Can you predict if you’ll catch a cold or fall ill in the next seven days? Of course not! That’s why a recent policy from an Indian manager requiring employees to apply for sick leave seven days in advance has left many puzzled. 

    The employee posted a screenshot of a WhatsApp conversation with his boss on the “antiwork” Reddit forum. In the message, the employee notified his boss, “My health is not well, so I won’t be coming to the office,”

    The manager then asked if the employee was requesting sick leave. Once confirmed, the manager replied, “To take sick leave or casual leave you need to inform at least 7 days prior.”

    “How to know if I am going to be sick in next 7 days?” the employee questioned in his now-viral post.

    Commenters were scratching their heads over the boss’s unusual request:

    One Reddit user suggested, “Ask him if he can predict if he’s going to be sick in the next 7 days?”

    Another user proposed, “Send an email every day saying, ‘This is to inform you that I might get sick seven days from now and may need to use sick time.’ Let’s see how long it takes.”

    A third user commented, “You’re not supposed to know your health will fail seven days in advance. You’re just supposed to spread your illness to everyone at work because, you know, sharing is caring.”

    A fourth user shared, “I used to work in a supermarket. One day, I had an evening shift and, after falling down a flight of stairs and injuring myself, I called in sick. I was told I needed to come in anyway or face a write-up because sick calls must be made before 8 am. Next time, I’ll just schedule falling down the stairs.”

  • ITR Filing 2024: Easily Correct Mistakes With Discard ITR Option – Step-by-Step Guide Inside | Personal Finance News

    ITR Filing 2024: It’s quite common to miss some details or make a mistake when submitting your income tax return (ITR). Even with the best efforts to get everything right, errors can still slip through. But don’t worry—there are ways to fix these mistakes and ensure your tax return is accurate.

    Before the financial year 2022-23 (assessment year 2023-24) if you made a mistake on your income tax return then there was no way to correct it directly. You had to verify the ITR with the incorrect information and then file a revised ITR. However, now there’s a much easier solution! If you make a mistake, you can simply use the Discard ITR option to fix it quickly and easily. 

    How can you use the ‘Discard ITR’ option in the ITR e-filing portal?

    The ‘Discard ITR’ option is a handy feature provided by the Income Tax Department. It allows you to discard (delete) your filled-up ITR form and start over. Think of it like typing a draft email and then deleting all the content before sending it. You can write fresh content and send the email. This way, if you make a mistake in your ITR form, you can easily start again without any hassle.

    How to use the ‘Discard ITR’ option on the e-filing portal:

    Here’s a simple step-by-step guide:

    – Visit the Portal: Go to the income tax e-filing portal at https://www.incometax.gov.in/iec/foportal/.

    – Log In: Log in using your credentials.

    – Access ‘e-Verify Return’: Navigate to the ‘e-File’ tab and select ‘e-Verify Return’ under ‘Income Tax Returns.’

    – Find Your Unverified ITR: A new page will open, showing your unverified ITR.

    – Discard the ITR: You will see two options: ‘e-Verify’ and ‘Discard.’ Click on ‘Discard’ to delete your filled-up unverified ITR.

    Why is it important to avoid using the ‘Discard’ ITR option after July 31?

    It’s important to be cautious with the ‘Discard’ option after July 31, 2024. If you discard your ITR after this date, it might be considered that you missed the filing deadline for the financial year 2023-24. After July 31, you will only be able to file a belated ITR which may come with a penalty. So, it’s best to finalise your ITR before the deadline to avoid extra charges and complications.

  • Budget 2024: Decoding The Calculation Of LTCG Under Old And New Capital Gain Tax Regime For House Purchased Before And After 2001 | Personal Finance News

    New Delhi: The Budget 2024 announcement has put the limelight on a fresh debate on whether removing indexation is going to have significant implications for property owners. 

    Sunil Tyagi, Maging Partner, Zeus Laws, in a candid conversation with Reema Sharma of Zee News has shared a detailed calculation on both the scenario when a house is bought before 2001 and after 2001. Here’s all you want to know.

    When a house / immovable property is sold the profit / gain from such sale can be long-term or short-term.

    Ø What is Short-Term Capital Gains (STCG)- If a house is sold within a period of 24 months from the date of its purchase, then any profits / gains from the sale of the house will be treated as short-term capital gain, and the amount of short-term capital gain which will be treated as a part of seller’s total income and will be taxed as per the existing tax slab rates as applicable to such Seller.

    Ø What is Long-Term Capital Gains (LTCG) –If a house is sold after a period of 24 months from the date of its purchase, then any profits / gains from the sale of the house will be treated as long-term capital gain, and the amount of long-term capital gain will be taxed @ long-term capital gain tax applicable in the financial year in which such sale has been affected.

    Ø What is Indexation – Indexation is the process of adjusting the purchase price of the immovable property for inflation.

    Prior to the changes in the Capital Gain Tax regime introduced in the 2024 Budget, the benefit of indexation (i.e., adjusting the value of property as per current market scenario) was available, and the Long-Term Capital Gains was taxable @ 20%.

    In the revised Capital Gain Tax regime introduced in the 2024 Budget, the tax on Long-Term Capital Gains has been reduced from 20% to 12.5% for property sales, however, the benefit of indexation has been discontinued. In cases of properties acquired prior to 01.04.2001, the fair market value as on 01.04.2001 shall be considered as Deemed Cost for computing capital gains tax.

    Case 1 : Calculation of Long Term Capital Gain tax under old and new Capital Gain Tax Regime in case a Case 1 : Calculation of Long Term Capital Gain tax under old and new Capital Gain Tax Regime in case a house is purchased after year 2001:




    Case 2: Calculation of Long Term Capital Gain tax under old and new Capital Gain Tax Regime in case a house is purchased before year 2001




     

    Meanwhile, Prashant Thakur, Regional Director & Head – Research, ANAROCK Group told Zee News, “The elimination of indexation benefits might cause a decrease in investor interest as indexation adjusts the buying price to account for inflation, thereby decreasing the capital gains tax on property sales. Without this advantage the tax burden rises, making real estate investment less appealing. This change could have an impact on high value properties potentially leading to a decrease in demand for such properties.”

     

  • RBI Tightens Rules For Domestic Money Transfers | Personal Finance News

    New Delhi: The Reserve Bank of India (RBI) has tightened the framework for domestic money transfers in order to keep track of both cash pay-in and pay-out services.  In a circular issued on Wednesday, the RBI stated that in the case of cash pay-out service, the remitting bank shall obtain and keep a record of the name and address of the beneficiary.

    The circular also mentioned that in the case of cash pay-in service, the remitting banks or business correspondents shall register the remitter based on a verified cell phone number and a self-certified ‘Officially Valid Document (OVD)’ as per the Master Direction – Know Your Customer Direction 2016, as amended from time to time.

    Every transaction by a remitter will also have to be validated by an Additional Factor of Authentication (AFA). “Remitting banks and their business correspondents shall conform to provisions of the Income Tax Act, 1961 and the rules/ regulations framed thereunder (as amended from time to time), pertaining to cash deposits,” the circular states.

    The remitter bank shall include remitter details as part of the IMPS/NEFT transaction message, it added. The transaction message will have to include an identifier to identify the fund transfer as a cash-based remittance. The RBI also stated that the guidelines on card-to-card transfers are excluded from the purview of the DMT framework and shall be governed under the guidelines granted for such instruments.

    The RBI explained that since the framework for Domestic Money Transfer (DMT) was introduced in 2011, there has been significant increase in the availability of banking outlets, developments in payment systems for funds transfers, and ease in fulfilling KYC requirements, etc. Now, users have multiple digital options for fund transfer.

    The RBI said that the changes are being introduced following a review that was undertaken recently of various services facilitated in the current framework.

  • Budget 2024: Rebate Under Section 87A Decreases By Rs 5K As Tax Structure Under New Tax Regime Revised — Understanding The Math | Personal Finance News

    New Delhi: Finance Minister Nirmala Sitharaman, presenting the Budget 2024 in Parliament made two significant announcements for the employed people to make for those opting for the New Tax Regime. First, the standard deduction for salaried employees is proposed to be increased from Rs 50,000 to Rs 75,000. Similarly, deduction on family pension for pensioners is proposed to be enhanced from Rs 15,000 to Rs 25,000. Secondly the FM announced a revised tax structure under the New Tax Regime.

    What is the new tax slab under the New Tax Regime?

    There will be zero tax on income between Rs 0 to Rs 3 lakh, under the new tax regime. There will be a 5 percent tax on income between Rs 3 to 7 lakh, 10 percent tax on income between Rs 7 to 10 lakh, 15 percent on income between Rs 10 to 12 lakh, 20 percent on income between Rs 12 to 15 lakh and 30 percent tax on income above Rs 15 lakh.

    Which tax slab was in place earlier?

    Till now, under the new tax regime, income between Rs 0 to Rs 3 lakh was tax-free. There was a 5 percent tax on income between Rs 3 to 6 lakh, 10 percent on income between Rs 6 to 9 lakh, 15 percent on income between Rs 9 to 12 lakh, 20 percent on income between Rs 12 to 15 lakh, and 30 percent tax on income above Rs 15 lakh.

    Understanding how the rebate has been reduced by Rs 5000

    You used to receive a tax refund of Rs 25,000 under Section 87A of the new tax regime if your total taxable income was less than Rs 7 lakh. There was no tax on your salary till Rs 0-3 lakh. The tax at a 5 percent rate was Rs 15,000 on a salary of Rs 3-6 lakh. On the other hand, the tax at the 10 percent rate was Rs 10,000 on a salary of Rs 6-7 lakh. In this way, you would get a full rebate of Rs 25,000.

    Now after the change in the tax slab, your salary up to Rs 3 lakh becomes tax-free. You have a tax liability of Rs 20,000 at the rate of 5% on the slab of Rs 3-7 lakh, on which you would receive a refund under Section 87A. This indicates that the rebate, which was previously Rs. 25,000, is now Rs. 20,000. Thus, the refund you receive under section 87A has decreased due to the change in tax slab.

    Will there be any losses for you?

    You may be wondering if you would lose out because the change in tax slab will result in a smaller refund. The response is negative. If your taxable income was up to Rs. 7 lakh earlier you would receive a refund of Rs. 25,000; going forward, you will receive a refund of Rs. 20,000. Your salary up to Rs 7 lakh would be tax-free in any case.

    Who stands to gain?

    Those whose taxable income exceeds Rs 7 lakh will profit from the change in the tax slab. Those whose income exceeds Rs 7 lakh will not be eligible for the 87A rebate. Previously, individuals in this category had to pay a tax of Rs. 25,000 on income up to Rs. 7 lakh. However, now, they will only be required to pay a tax of Rs. 20,000.

  • Budget 2024: LTCG Reduction On Property Without Indexation Bad News For Sellers; Check Calculation | Real Estate News

    Finance Minister Nirmala Sitharaman presented her 7th budget in which she announced some changes in the new tax slabs while the old remain untouched. FM Sitharaman also proposed a long-term capital gain tax rate of 12.5% on all financial and non-financial assets including properties. Listed financial assets held for more than a year will be classified as long-term, while unlisted financial assets and all non-financial assets will have to be held for at least two years to be classified as long-term. 

    “Long-term gains on all financial and non-financial assets, on the other hand, will attract a tax rate of 12.5 per cent. For the benefit of the lower and middle-income classes, I propose to increase the limit of exemption of capital gains on certain financial assets to Rs 1.25 lakh per year,” said the FM. The Finance Minister also announced to remove the indexation clause for the ease of tax computation. However, this will prove detrimental for the property sellers. Indexation is used to adjust the property price at the time of sale to account for inflation. 

    Check Property Sale LTCG Calculation Here

    The Congress party shared a detailed calculation showing how LTCG reduction without indexation is not good news for people. “Suppose you bought an apartment in January 2009 for Rs 50 lakhs. Fifteen years later, you sold it today for Rs 1.5 crore. With indexation, the Rs 50 lakhs you paid 15 years ago is considered to be worth Rs 1.32 crore today. So, the net profit or capital gain is only Rs 17.5 lakhs, and you’d pay only Rs 3.5 lakhs as Capital Gains Tax at the rate of 20%. But without indexation, your capital gain now is Rs 1 crore, and at 12.5%, you’d end up paying Rs 12.5 lakhs in tax. Essentially, the government takes Rs 9 lakhs more than the old method,” it said.


    It further clarified that if you bought an apartment in January 2018 for Rs 80 lakhs and sold it today for Rs 95 lakhs due to a personal emergency. “This is where it gets tough. If indexation was applicable, you actually made a loss of Rs 11.76 lakhs and would have paid ‘Zero’ LTCG tax. But with the new method, Nirmala Sitharaman will add salt to your wound. She will take Rs 1.87 lakhs from you as LTCG. Your net loss becomes Rs 13.63 lakhs,” it said.


    For those unfamiliar with the Cost Inflation Index (CII), it shows how the value of Rs 100 in 2001-02 is now Rs 363. 

    LTCG to Loot Middle Class | How will removing indexation in calculating LTCG tax affect everyone?

    Today, FM @nsitharaman reduced Long Term Capital Gains (LTCG) Tax on properties to 12.5%, but cleverly removed indexation, which adjusts the property price at the time of sale, to… pic.twitter.com/6uaYjtIaDP
    — Congress Kerala (@INCKerala) July 23, 2024

    The Income Tax Department also shared a test calculation scenario where it claimed that people will save taxes due to removal of the indexation.

    Taxation of Capital Gains – Salient Points

    Holding period has been simplified. There are only two holding periods, for listed securities, it is one year, for all other assets, it is two years.

    Rate for short-term STT paid listed equity, Equity oriented mutual fund and… pic.twitter.com/w1AdvHDInV
    — Income Tax India (@IncomeTaxIndia) July 23, 2024

    Even experts shared the same concern. They agreed that removing indexation defeats the whole purpose of LTCG. “This affects everyone and will push more people to undervalue their transactions, increasing the use of black money. This makes real estate investments less attractive and could drive our construction sector into an even bigger crisis,” it said.

  • IIT Bombay Develops Method To Optimise Components In Fuel Cell Electric Vehicles | Auto News

    Fuel Cell Electric Vehicles Technology: The Indian Institute of Technology (IIT) Bombay on Tuesday said it has developed an optimisation method for determining the required weight and size distribution of components in fuel cell electric vehicles (FCEVs). The new method can optimise the weight, cost, and range of FCEVs by recommending the optimal size for the radiator and a thermal energy storage (TES) unit, increasing their efficiency and helping expedite commercialisation, IIT Bombay said in a statement.

    Electric vehicles have gained popularity and are considered the future of green mobility and a cleaner alternative to fossil fuels. According to IIT Bombay, unlike battery electric vehicles (BEVs), which need charging, FCEVs run on fuel cells, and are referred to as zero-emission vehicles, because the only by-product from the engine is water vapour.

    However, a fuel cell generates excess heat that requires large radiators for cooling, which increases vehicle size and weight, it stated. To address this issue, IIT Bombay’s Prof Prakash C Ghosh and Nadiya Philip proposed a new thermal management system using paraffin wax as the phase change material (PCM) to store thermal energy.

    It allows reduction in radiator size and maintains a constant temperature for the coolant, improving vehicle performance, it said. The method combines EES and TES to calculate the ideal sizes of each component, namely, the radiator, fuel cell, EES, and TES systems.

    The team used a mathematical technique called pinch analysis to determine the ideal sizes for these components. The researchers have estimated that the proposed method can allow a reduction in the radiator size in heavy-duty vehicles like trucks by almost 2.5 times by simply optimising the sizes of the parts, the statement said.

    This method can aid in the design of more efficient and cost-effective cooling systems in such vehicles, it said.

  • Budget 2024: What Is Angel Tax That Is Abolished By FM Nirmala Sitharaman And How Will It Benefit Investors? | Personal Finance News

    Budget 2024: India’s Finance minister Nirmala Sitharaman has proposed the abolishment of the ‘Angel Tax’ for all classes of investors to promote the growth of budding entrepreneurs in the country. Finance Minister Nirmala Sitharaman made this move while presenting the Union Budget 2024-25 on Tuesday. 

    “To bolster the Indian startup ecosystem, boost the entrepreneurial spirit, and support innovation, I propose to abolish the so-called angel tax for all classes of investors,” FM Nirmala Sitharaman said while presenting the budget 2024. 

    What Is Angel Tax And How Will It Benefit Investors? 

    The “Angel Tax” refers to a levy imposed on the capital raised by unlisted companies through the issuance of shares to investors. This tax targets the premium paid by investors above the fair market value of the shares, classifying it as “income from other sources” and taxing it accordingly. The Angel Tax was Introduced in India in 2012 which aims to curb money laundering and prevent the inflow of unaccounted money.

    In September last year, the Income Tax Department notified new angel tax rules that comprise a mechanism to evaluate the shares issued by unlisted startups to investors. Over 1.17 lakh startups are registered with the government. They are eligible for availing of incentives under the government’s Startup India initiative. 

    Commenting on the announcement, Deloitte India Partner Sumit Singhania said it is a positive move as it would help reset not only the tax cost matrix for investors in startups but for foreign strategic investors as well.

    “It also puts out a progressive view of tax policy making by the government. Since this levy has stung for more than a decade since it was introduced in 2012, the withdrawal of angel tax entirely means a timely course correction as the government rolls out the red carpet for long-term strategic investment as well as more risk-capital to promote innovation and R&D,” he said. (With Inputs From PTI) 

  • Union Budget 2024: Timing Of Budget, LIVE Streaming, Where To Watch FM’s Speech Live? | Economy News

    New Delhi: Union Finance Minister Nirmala Sitharaman will present the Union Budget 2024 on Tuesday, July 23.
     

    Union Budget 2024: FM Sitharaman’s Speech Timing

    The live streaming of the Budget 2024 presentation will begin at 11 am today. There will be a slew of options for the audience to stream the Budget 2024 presentation live.  
     

    Where To Live Stream Union Budget 2024? 

    Viewers can watch the live streaming of the Union Budget 2024 presentation on Lok Sabha TV, Rajya Sabha TV, DD News and news channels. The Finance Minister’s address is available to view live online via Zee News Live TV. On July 23, the Zee News app will stream the Budget 2024 live, providing post-budget commentary to help viewers better comprehend the developments. 

    To watch the live presentation of the Union Budget, you can also go to the official Lok Sabha YouTube and Twitter accounts, as well as the official parliament channel, Sansad TV. The Union Budget 2024 speech will also be televised by national broadcaster Doordarshan.

    Union Budget: FM Nirmala Sitharaman’s Speech

    She has given numerous lengthy talks on the budget during the last few years. For example, she gave the longest speech in Indian history in 2019—two hours and fifteen minutes—during her Budget speech. She did, however, surpass her own record in 2020 when she gave a speech that lasted about 162 minutes. The FM gave a one-hour and 27-minute speech in which she announced the 2023 budget.