Floods, Financial Market happenings and Cryptocurrency ban in India.
Chandrayaan 2 took off, CBDT extended the ITR filing due date to 31st August.
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Revolt of mother nature… The Brahmaputra floods have taken a toll on the northeastern states leaving 42 districts of Bihar & Assam in agony. Households, cattle, croplands and the economy have taken a hit. Over 1 crore people & 16 lakh animals are affected by the floods.
Grass is not greener on the other side either… States in the Northwest and South are witnessing nearly 35% rainfall deficiency(wish we could distribute the rainfall). When agriculture accounts for about 15% of India’s GDP… the failed monsoon can end up hitting the economy hard.
Worst of both worlds… Economists predict price inflation, a drop in household consumption and India’s economic growth. Good news… that we have buffer stock and imports of essential food staples. But, (yes there’s a but here too) these imports build up pressure on annual finances.
Want to help? donations to Chief Ministers Relief Fund would help support those affected by the flood. By helping, you can also claim a deduction on your contribution u/s 80G while filing your ITR.
FIIs flooding out… Foreign investors have sold $1.2 billion worth of Indian equity shares in July. The income tax surcharge announced in the Union Budget 2019 seems to have hurt the investor sentiment. It is estimated that the surcharge impacted 40% of FPI(Foreign Portfolio Investors).
As many as 80% of stocks washed off the investors’ wealth by last week in just 11 sessions.
Ups & Downs… The increase in custom duty on gold and cess on auto fuels, coupled with disturbed monsoon may nudge India into an economic slowdown. The IMF lowers India’s estimated growth rate to 7% from 7.2% for 2019 & 2020. But, India remains one of the fastest-growing economies.
We hope not, but do you have trading losses? Intraday and F&O traders with losses or turnover more than INR 2 crore are liable for a tax audit. Don’t panic… taxpayers liable for an audit are can file their ITR till 30th September.
Confused? Check if you are liable for a tax audit.
Cryptocurrency = Illegal. The Inter-Ministerial Committee suggested a complete ban on cryptocurrencies in India on Tuesday. Why so? The primary reasons cited in the report are high volatility, no underlying intrinsic value of the cryptocurrencies and the malware used for illegal mining. Entrepreneurs, Startups, and investors are displeased with this announcement since it violates Article 19(1), which gives them the fundamental right to do business in any sector or trade.
PS: The due date is extended for ITR filing, but don’t get laid-back. File your ITR now and get your tax refund rolling.