UPSC Prelims 2021 would be conducted on October 10, 2021. The aspirants are now in the revision mode and have no time to look into their books. Jagran Josh has compiled important topics that have been in news in 2020-21 which may form the major chunk of UPSC CSE 2021 Prelims GS Paper 1 and CSAT Exam. Take a look at the topics from Indian economy that may be helpful for last minute revision.
Major Highlights: Indian Economy-
- World Economy: Contract by around 6% in 2020 (Economic Outlook given by Organization for Economic Cooperation and Development)
- Indian Economy: National Statistical Office (NSO) informed that GDP growth in 2019-20 was 4.2%. It was an 11-year low (6.1% expansion in 2018-19)
- Growth in per capita income in real terms was 3.1% in 2019-20 and was 4.8% in 2018-19
- Fiscal deficit was 4.59% of the GDP in 2019-20
PM CARES Fund:
- SC refused to transfer the money in PM CARES fund to National Disaster Relief Fund (NDRF)
- NDRF is a statutory fund created under the Disaster Management Act (DM Act) as noted by SC. This makes PM CARES and its two different entities, thus reclining the conditions of fund transfer directly.
Taxes in news:
- It is a type of tax where the incidence and impact of taxation fall on the same entity. Thus in a way, it is a tax that you pay directly to the authority imposing the tax.
- Income tax, corporate tax, dividend distribution tax, securities transaction tax, fringe benefit tax and wealth tax are types of direct taxes.
- It majorly eases the tax compliance which is also rewarding for the honest tax payers.
- The major features of this category include- Faceless Assessment, Faceless Appeal and Taxpayer Charter.
Faceless assessment: It would delete the direct contact between Taxpayer and Income Tax personnel.
Faceless appeals: Appeals through this method would be allotted to any officer in the country and the identity of the officer deciding the appeal will remain unknown.
Taxpayer charter: It outlines the rights and responsibilities of both taxation authorities and the taxpayers. It is aimed to empower citizens by ensuring timely services of the IT Department.
Digital Service Tax:
- It was imposed on firms like Google and Facebook. India adopted a 2% DST (digital services tax) in 2020.
- It is applicable only to non-resident companies and also covers online sales of goods and services. It is also applicable to people in India.
- Equalization Levy was introduced in 2016 over tax payments for digital advertising services received by non-resident companies without a permanent establishment in India, once it exceeded ₹1 lakh in a year
- Now in 2020-21, the taxes were widened to include the e-commerce companies. A surcharge of 2% was applied on the same.
Goods and Services Tax:
- GST completed 3 years this year.
- It was introduced on July 1, 2017, by 101st Constitutional amendment.
- It was the biggest indirect tax reform by subsuming around 17 indirect taxes like excise duty, VAT, service tax and luxury tax.
- Indirect taxes are not subsumed on Basic Custom Duty, Anti-Dumping Duty, Central Excise on Petroleum Products, VAT on alcohol for human consumption.
- GST is currently levied on all products in four slabs of 5, 12, 18 and 28%.
- It is not levied on petroleum products, alcohol, real estate & electricity.
Trend and Progress of Banking:
The Reserve Bank of India released the Report on Trend and Progress of Banking in India 2018-19. It is a statutory publication in compliance with Section 36 (2) of the Banking Regulation Act, 1949.
RBI undertook many policy measures to mitigate the effects of COVID-19.
Scheduled commercial banks gross non-performing assets (GNPA) ratio declined from 9.1% at end-March 2019 to 7.5% at end-September 2020.
Banking Regulation (Amendment) Act 2020:
Parliament passed the Banking Regulation (Amendment) Act 2020
It aims to protect depositors of cooperative banks and empower the Reserve Bank of India (RBI) to regulate banking activities of cooperative societies.
It would replace the Banking Regulation (Amendment) Ordinance, 2020.
RBI also allowed RRBs to access the liquidity adjustment facility (LAF), marginal standing facility (MSF) and call or notice money market.
Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020:
Parliament passed the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020 so as to provide relief for corporates as the pandemic and subsequent lockdown. It targets all individuals, companies, Limited Liability Partnerships (LLPs) and partnership firms