Security Transaction Tax (STT)

  • Security Transaction Tax (STT) was first introduced in the Union Budget 2004.
  • The idea of STT was born after it was found that there were cases of capital gains taxes evasion through real and fictitious losses. Thus, STT came into being as a way of realizing the actual potential of taxing the stock markets. So, while long-term capital gains (LTCG) tax was exempted, STT was introduced to make sure there was no tax evasion. And then, LTCG too made a comeback in 2019.

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Key highlights of the Financial Stability Report(DEC 2019)

  • Scheduled commercial banks’ credit growth remained subdued at 8.7 per cent year-on-year (YoY) in September 2019.
  • Banks’ capital adequacy ratio improved significantly after the recapitalisation of public sector banks (PSBs) by the government.

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IMF Report Highlights on India(Dec 2019)

  • India should “recommit” to cutting on debt by bringing down its public sector borrowing requirements and enhance focus on having greater fiscal transparency to help investors make informed economic decisions.
  • Despite some improvement in reported fiscal deficits, debt as a share of GDP remains little changed over the past decade partly due to increases in off-budget financing

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Promulgation of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019

 

The liability of a corporate debtor for an offence committed before the commencement of the corporate insolvency resolution process shall cease, and the corporate debtor shall not be prosecuted for such an offence from the date the resolution plan has been approved by the Adjudicating Authority if the resolution plan results in the change in the management or control of the corporate debtor to a person who was not: Continue reading “Promulgation of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019”