Inheritance Tax

Nearly forty years after the Indian Overseas Congress party, led by Prime Minister Rajiv Gandhi, eliminated the inheritance tax, Sam Pitroda, the chairman of the party, has highlighted the possibility of wealth redistribution.

Context:

• There was formerly an inheritance tax in India. The estate duty tax was first imposed in 1953 and was eliminated by the Rajiv Gandhi administration in 1985.
• Additionally, India formerly had gift and wealth taxes, which were eliminated in 1998 and 2015, respectively.

Ways to tax wealth

• Taxes are imposed as a one-time levy on the flow of income from wealth, at the time of wealth transfer, or on the stock of wealth that is correlated with the value of held assets.
• When wealth or assets are transferred, there may be a capital levy on the income from wealth or asset ownership that results in capital gains, as well as transfer taxes in the form of wealth tax, inheritance tax, estate tax, or gift tax.
• Additionally, taxes may be applied to both wealth and income.Legislation for a “Billionaire Minimum Income Tax” of at least 25% on their whole income, including unrealized profits, has been suggested by the Biden Administration (USA).

The taxes in India

• The estate duty, which has been repealed, was an inheritance tax that had a Rs 1 lakh threshold and progressive rates ranging from 5% to 40% on the principal value of the estate beyond Rs 20 lakh.
• 1958 saw changes to the Estate Duty Act, 1953, including a new definition of accountable person, a lowering of the applicable level, and a redefining of slabs.
• The concept of an inheritance tax persisted and was discussed both formally and informally even after it was abolished.
• During a public event in December 2018, Arun Jaitley, the Finance Minister at the time, stated that while inheritance tax is a common source of huge endowments for hospitals, universities, and other institutions in industrialized countries, it is not a practice in India.
• In the 2015–16 Budget, the Narendra Modi administration declared that the wealth tax would be eliminated and replaced with a levy on the extremely wealthy.
• Although there was a 1% wealth tax on assets valued at Rs 30 lakh and above (excluding bonds, shares, and the first home), according to Jaitley, only Rs 1,008 crore in wealth was collected overall in 2013–14. Individuals having taxable incomes of Rs 1 crore and above were subject to an additional 2% surcharge, which was projected to generate revenues of Rs 9,000 crore.
• Rich taxpayers are thought to be more sensitive to high tax rates, which frequently leads to capital flight and investment to tax havens or tax jurisdictions with advantageous tax rates.
• Furthermore, if the expenses associated with collecting and administering these taxes are greater than the resulting income, then high tax rates are illogical.
• The first several years of estate duty saw smaller receipts than anticipated. Estate duty was abolished due to the high expense of collection and double taxing in multiple wealth tax forms.
• Then-finance minister V P Singh claimed in his 1985–86 budget statement that having two different rules for property taxes—wealth tax prior to death and estate duty following death—amounted to “procedural harassment” of taxpayers. “The estate duty yield is only approximately Rs 20 crore, but the administrative costs are comparatively high.” on this reason, I therefore suggest doing away with estate duty on estates passing on or after March 16, 1985,” Singh stated.
• The wealth tax presented the same problem. “Should a tax that results in low yield and high collection costs be kept in place, or should a lower cost tax be substituted with a higher yield tax? More taxation is required of the wealthy and prosperous than of the less fortunate. In his Budget statement for 2015–16, Arun Jaitley stated, “I have therefore decided to abolish the wealth tax and replace it with an additional surcharge of 2% on the super rich with a taxable income of over Rs 1 crore.”
• In 1998, the gift tax was repealed due to decreased revenue. Nevertheless, a different version of the gift tax was later reinstated.

GANDHI SAGAR WILDLIFE SANCTUARY

In order to determine whether the Gandhi Sagar Wildlife Sanctuary in Madhya Pradesh was prepared for the release of five to eight cheetahs later this year, a delegation from South Africa recently paid a visit.

Context:

• Project Cheetah, which intends to reintroduce cheetahs into the refuge, is being planned in part with this visit. Breeding and favorable weather patterns are the main concerns.

About

• The Madhya Pradesh districts of Mandsaur and Nimach border the Gandhi Sagar Wildlife Sanctuary to the north.
• The state of Rajasthan borders it on one side.
• Large open spaces with little flora and rocky terrain make up the majority of the sanctuary, with tiny areas of lush forests scattered throughout.
• The sanctuary is divided into two sections by the Chambal River, which runs through it.
• This sanctuary’s woodland is a portion of the dry deciduous Khathiar-Gir forest, therefore trees like Salai, Kardhai, Dhawda, Tendu, Palash, and others can be found here.
• Many animal species can be found living in the sanctuary.The sambar, Nilgai, and chinkara (Indian gazelle) are a few of the creatures that are easily visible.
• In addition, the area is home to the Indian leopard, langur, peacock, Indian wild dog, otter, and Mugger crocodile.
• Within Gandhi Sagar Wildlife Sanctuary are the world-renowned Chaturbhuj Nala rock shelters.
• As part of the Cheetah Reintroduction Project, Gandhi Sagar Wildlife Sanctuary in Madhya Pradesh, India, is being set up as a second habitat for cheetahs.
• The initial location for the cheetah reintroduction has been selected as Madhya Pradesh’s Kuno National Park.

NEPHROTIC SYNDROME

Nephrotic syndrome has been connected to frequent usage of fairness creams in a number of cases described by Keralan researchers.

Context:

• These lotions, which are frequently advertised as brightening or whitening the skin, may have dangerous substances including high concentrations of mercury.

About NEPHROTIC SYNDROME :

• An increased excretion of proteins in the urine is a defining feature of the kidney disease known as nephrotic syndrome.
• Fairness cream use has recently been linked to kidney issues, particularly membranous nephropathy (MN), which damages kidney filters and results in protein leakage.

Fairness Creams and Mercury:

• High concentrations of mercury found in some fairness creams can be harmful to the kidneys.
• Because mercury is absorbed through the skin, kidney filters become damaged.
• The development of membranous nephropathy has been linked to the presence of mercury in these creams.

Nephrotic Syndrome Symptoms:

• Extreme edema, or swelling, particularly in the feet, ankles, and eye areas.
• pee with too much protein that is foamy.
• rise of weight due to fluid retention.
• exhaustion and appetite decline.

Underlying Cause:

• Nephrotic syndrome is typically brought on by injury to the kidneys’ glomeruli, which are microscopic blood arteries.
• These glomeruli filter blood, isolating waste materials from necessary components.

UNCTAD rebranded as ‘UN Trade and Development’

• In celebration of its 60th anniversary, UNCTAD, the United Nations Conference on Trade and Development, has undergone a major rebranding as “UN Trade and Development.”
• Its dedication to strengthening its influence and raising its voice on behalf of developing nations is shown in this calculated action.
• A new graphic identity as part of the rebranding effort aims to more accurately represent the organization’s mission and core beliefs.
• The agency will use its new name and emblem in all six UN languages on all official channels.

About UNCTAD:

• Promoting the interests of developing nations in international trade is the permanent goal of the United Nations Conference on Trade and Development (UNCTAD).
• With its main office in Geneva, it was founded by the UN General Assembly on December 30, 1964.
• Trade, development, finance, technology, investment, and sustainable development are the main areas of focus for UNCTAD’s work.
• To assist nations in formulating policies in various domains, it gathers information, carries out studies, and evaluates laws.
• Additionally, UNCTAD provides suggestions for readjusting the global debt architecture to better suit the requirements of developing nations.

Weapon-free outer space

• A US-Japanese-sponsored draft resolution opposing space-based nuclear weapons is blocked by Russia after an amendment that would have made the ban apply to all weapons was rejected.
• The resolution demanded that all states, especially those with substantial space capabilities, support the peaceful use of space and work to stop an arms race in space.
• With 13 countries voting in favor of the resolution, Russia abstaining, and China abstaining, the Security Council ultimately rejected the proposal.

Marrakesh Agreement

In honor of the 30th anniversary of the Marrakesh Agreement, a turning point in international trade cooperation, the World Trade Organization (WTO)

About Marrakesh Agreement:

• On April 15, 1994, 123 countries signed the Marrakesh Agreement, sometimes referred to as the Agreement Establishing the World Trade Organization (WTO), in Marrakesh, Morocco.
• The agreement integrates agreements reached during the Uruguay Round and under the General Agreement on Tariffs and Trade (GATT) to define the structure, functions, and scope of the WTO.
• The first day of the WTO’s formal existence was January 1, 1995.