Foreign investments for the markets and Amazon forest fires.
What’s happening this week
- WeWork acquired co-working space competition Spacious
- New Zealand bans swimming with bottlenose dolphins
- China’s factory activity seen contracting for 4th straight month
- Avenger breaks digital download record
Hey,
India announces reforms to welcome foreign investments. The country mourns passing away of Former Finance Minister and BJP leader Arun Jaitley.
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Candy for markets
FPIs come back! Nirmala Sitharaman’s maiden budget announced an enhanced surcharge levied on short-term and long-term capital gains earned by FPIs… and the investments of nearly $3.4 billion flooded out. With the hope to revive the shivering markets, the Finance Minister on Friday announced a rollback of this enhanced surcharge.
Everybody loves foreign money… especially when they are used to create jobs. The government relaxed FDI investment norms yesterday for various sectors to boost the economy, create employment and get closer to achieving the $5 trillion economy goal. In line with the ‘Make in India’ mission 100% FDI is allowed in contract manufacturing among 4 major changes announced.
3rd time isn’t the charm… The Direct Tax Code (DTC) panel proposed to abolish the Dividend Distribution Tax (DDT). This will remove the peculiar ‘triple taxation’ on the distribution of profits to shareholders. In addition to a dividend of INR 1.23 Lakh crore, RBI will also transfer INR 52640 crore to the government to boost the economic spur.
Time is of the essence… 31st August is the due date to file taxes… So hurry and file your ITR or get ready to pay a late filing penalty of INR 5,000 u/s 234F. If a tax audit is applicable to you, then the due date is 30th September. Tax audit is usually applicable when:
- Turnover more than INR 1cr
- Losses from trading in F&O or intraday
- Profit is less than 6% of the turnover.
File your ITR for free on Quicko and get the maximum refund.
In Flames
The largest rainforest is burning… Experts find the reason for fires is deforestation and the slash-and-burn practice where the patches cut down are burned to allow space for agriculture and replenish the soil. Nearly 60 percent of the Amazon forest is within Brazil’s borders, giving them the nation a huge influence over the region.
Blame Game… Brazil’s President Jair Bolsonaro received heat from global activists and leaders. He initially blamed NGOs for allegedly setting fire on purpose as a form of protest against his policies. Believed to be a right-wing candidate, he allocated less land for preservation and indigenous tribes against making it easier for industries to access it.
Rescue Money… Following emergency talks at the G7 summit, the world’s seven largest economies offered $20 million as an aid to Brazil for bringing fires under control. The US quoting the past effort of conserving the Amazon forest did not agree to contribute towards the aid package offered at G7 Summit. On Monday Brazil accepted $12.2 million as aid from the UK.
Rising Heat… After international pressure the Brazillian President deployed the military to help battle fires, sending nearly 44,000 troops across 6 states. Warplanes were also used to smother the fire. The global economic slowdown is expected to be further affected by environmental pressures since the resources are diverted towards damage control and not reviving the economy.
Byte of the Week
“We need a fresh look from an independent group of experts at the way we compute GDP.” – Raghuram Rajan.