Delhi’s Construction Bans: Balancing Pollution Control and Economic Impact
Summary
Delhi, the world’s most polluted capital, continues to struggle with poor air quality despite government efforts. Construction bans and other measures have been implemented to combat pollution, but they have led to unemployment and economic challenges for the workforce. Public concern is lacking, as exemplified during Diwali night celebrations when bans on firecrackers were disregarded. The construction bans also have significant implications for the real estate sector, causing delays in housing unit deliveries and disrupting economic projections. India should learn from China’s environmental strategies and adopt a collaborative approach involving citizens, policymakers, and industry stakeholders to find sustainable solutions to pollution.
CBDT Releases Amendment to Rule 11UA for Evaluating Investments in Closely Held Companies
Summary
The Central Board of Direct Taxes (CBDT) has released an amendment to Rule 11UA, which outlines the procedures for evaluating investments in closely held companies. These amendments are crucial in determining whether Angel Tax will be applicable to start-ups. The new rule incorporates additional methods and benchmarks for determining the fair market value of unlisted equity shares. It also provides relief to investors and unlisted companies, including a 10% safe harbor limit and a requirement for the valuation report to be no older than 90 days.
Tax Liability on Auctioning Pledged Ornaments
Summary
When a bank auctions pledged jewelry, there may be a long term capital gain (LTCG) that arises. The fair market value of the jewelry as of April 1, 2001 may be considered as the cost of acquisition for tax purposes. NRIs are not required to file an income tax return in India if they have not earned any income from India. Capital gains from the sale of a flat are calculated based on the date of transferring the property, not the date of booking the flat. Certain costs can be deducted from the sale consideration while calculating LTCG. Capital loss from derivatives trading cannot be set off against salary income. LTCG on the sale of mutual funds is taxed at 10% for periods longer than 12 months. Transferring shares to a relative does not trigger taxation, and the recipient can include the period for which the shares were held by the original owner and use the original cost of acquisition as their own.
High Net-Worth Individuals Prioritizing Term Insurance for Protection and Legacy Security
Summary
High net-worth individuals (HNIs) in India are increasingly purchasing substantial term insurance cover to protect themselves and their dependents. Customized policies are being offered by life insurers, tailored for wealth preservation and legacy security. Despite providing significant coverage, term insurance remains affordable, with monthly premiums ranging from Rs 3,000 to Rs 3500 for coverage amounts like Rs 5 crore. A study shows that HNIs accounted for 25% of the term insurance business in FY23, with the most preferred cover amount being Rs 1.75 crore. The introduction of tele-medical check-ups has also led to a surge in NRIs purchasing term insurance with considerable coverage. Coverage options up to Rs 20 crore are being offered to address the financial commitments and assets associated with HNIs. Overall, affordability, expansive coverage, and competitive offerings have made term insurance the preferred choice among HNIs.
Gold Loans: A Fast and Hassle-Free Option for Urgent Financial Requirements
Summary
Gold Loans are a secure and convenient way to meet urgent financial needs in India. With easy approval and minimal documentation, borrowers with low credit scores or limited income can access these loans. Technological advancements have made processing faster, and loans can be disbursed on the same day. There are no restrictions on the use of loan proceeds, and the gold is securely stored by the lender until the loan is repaid. Gold Loans also offer high loan-to-value ratios and lower servicing costs compared to other loans. Overall, Gold Loans are a versatile and reliable option for immediate financial assistance.
