What was Chandrashekhar Azad?
24-07-2024
07:30 AM

Overview:
The Prime Minister recently paid tributes to Chandra Shekhar Azad on his birth anniversary.
About Chandrashekhar Azad:
- He was a great Indian freedom fighter.
- Born Chandra Shekhar Tiwari on July 23, 1906, in the small village of Bhavra in Madhya Pradesh, Azad was a beacon of revolutionary fervour from a very young age.
- His resolve to fight for India’s independence was ignited early, and by the age of 15, he had already joined the Non-Cooperation Movement initiated by Mahatma Gandhi.
- Azad was disappointed by Gandhi’s suspension of the noncooperation movement in February 1922, after several policemen had been murdered by a revolutionary mob at Chauri Chaura.
- He became an active member of the Hindustan Republican Association (HRA), an organization dedicated to overthrowing British rule through revolutionary means.
- By 1928, he had played a crucial role in transforming the HRA into the Hindustan Socialist Republican Association (HSRA), which aimed to establish a socialist republic in India.
- He worked closely with other notable revolutionaries, including the legendary Bhagat Singh.
- Together, they sought to challenge and dismantle the oppressive colonial regime.
- Azad’s leadership and strategic acumen were instrumental in several significant revolutionary activities.
- He played key a role in the Kakori Train Robbery (1926), the attempt to blow up the Viceroy's train (1926), and the shooting of Saunders at Lahore (1928) to avenge the killing of Lala Lajpat Rai.
- Azad was known for his unwavering resolve and extraordinary bravery. He lived a life on the run, constantly evading capture by the British police, and became a symbol of resistance for the youth of India.
In January 1931, during a fierce encounter with the British police in Alfred Park, Allahabad, Azad fought valiantly but was eventually cornered. Faced with the prospect of capture, Azad chose to end his life on his own terms, declaring that he would never be captured alive.

Q1: What is the Kakori Train Robbery (1926)?
The Kakori Train Robbery also known as the Kakori conspiracy was an armed robbery which took place on August 9, 1925, on a train in central Uttar Pradesh and the subsequent court trial instituted by the government of British India against more than 20 Indian revolutionaries accused of involvement, directly or indirectly, in the brave act. The revolutionaries were the members of the newly formed Hindustan Republican Association, a revolutionary organisation, which was later renamed as Hindustan Socialist Republican Association.
Source: Prime Minister pays homage to Chandra Shekhar Azad on his birth anniversary
What is Tax Incidence?
24-07-2024
07:30 AM

Overview:
The Union government recently said Goods and Services Tax (GST) has decreased tax incidence on the common man.
About Tax Incidence:
- Tax incidence (or incidence of tax) is an economic term for understanding the division of a tax burden between stakeholders, such as buyers and sellers or producers and consumers.
- There are two forms of tax incidence.
- The initial incidence (also called statutory incidence) of a tax is the initial distribution among taxpayers of a legal obligation to remit tax receipts to the government.
- It is established by law and tells us which individuals or companies must physically send tax payments to state and local treasuries.
- The final incidence (also called economic incidence) of a tax is the final burden of that particular tax on the distribution of economic welfare in society.
- It is also referred to as the tax burden faced by individuals in their roles as consumers, workers, and investors.
- For example, the legal incidence of corporate income taxes typically falls on companies, but the economic incidence of the tax is shifted forward to others, in the form of higher prices for consumers, lower wages for workers, reduced returns to shareholders, or some combination of the three.
- The difference between the initial incidence and the final incidence is called tax shifting.
- The tax incidence depends upon the price elasticity of supply and demand.
- If the demand for a good change significantly with a change in price, then a good is elastic—likely a non-necessity like a new car or home goods.
- Little to no change in demand in relation to price means a good is inelastic, and consumers will continue to purchase the good as prices go up. Examples of inelastic goods include petrol and cigarettes.
- Taxes on inelastic goods like cigarettes shift the tax incidence to the consumerwho will continue to purchase the product, despite the price increase from the tax.
- Conversely, if a tax is levied on an elastic good, the tax incidence falls on the producerbecause the new price increase is likely to reduce the demand for the good.

Q1: What is Tax buoyancy and Tax Elasticity?
Tax buoyancy explains the relationship between the changes in government’s tax revenue growth and the changes in GDP. It refers to the responsiveness of tax revenue growth to changes in GDP. Tax Elasticity refers to changes in tax revenue in response to changes in tax rate.
Source: GST reduced tax incidence on common man, to be expanded to remaining sectors
Vishnupad Temple
24-07-2024
07:30 AM

Overview:
Recently, the Finance Minister announced during her Union Budget speech that corridor projects will be built for the Vishnupad Temple at Gaya and the Mahabodhi Temple at Bodh Gaya in Bihar.
About Vishnupad Temple:
- It is in the state of Bihar and dedicated to Lord Vishu.
- It was built in 1787 on the orders of Queen Ahilyabai Holkar of Ahmadnagar.
- It is located on the banks of the Falgu river.
- Architecture: Architecturally, the temple is around 100 feet tall and has 44 pillars.
- Devotees visit the temple during pitra paksh, a period in the Hindu calendar when people take part in rituals to remember their ancestors.
Key facts about Mahabodhi Temple
- The temple stands to the east of the Mahabodhi Tree, where Gautam Buddha is believed to have attained nirvana. The temple has a unique shape and a height of 170 feet.
- It is located in Bodh Gaya, in central Bihar, on the banks of the Niranjana River.
- The Mahabodhi Temple Complex is the first temple built by Emperor Asoka in the 3rd century B.C., and the present temple dates from the 5th–6th centuries.
- It is one of the earliest Buddhist temples built entirely in brick, still standing, from the late Gupta period and it is considered to have had significant influence in the development of brick architecture over the centuries.
- It was recognized as a UNESCO World Heritage Site in 2002.

Q1: What is the role of the UNESCO World Heritage Committee?
The Committee is responsible for the implementation of the World Heritage Convention, defines the use of the World Heritage Fund and allocates financial assistance upon requests from States Parties.
Source: Budget 2024: Bihar’s Vishnupad and Mahabodhi temples, for which corridor projects were announced
What is Skill Loan Scheme?
24-07-2024
07:30 AM

Overview:
The finance minister recently announced a revision to the model skill loan scheme, which will now facilitate loans up to Rs 7.5 lakh backed by a guarantee from a government-promoted fund.
About Skill Loan Scheme:
- It was introduced in July, 2015, to offer institutional credit to individuals pursuing skill development courses aligned with National Occupations Standards and Qualification Packs.
- These courses are conducted by training institutes following the National Skill Qualification Framework (NSQF) and lead to certifications, diplomas, or degrees.
- The Scheme applies to all member banks of the Indian Banks’ Association (IBA) and other banks and financial institutions as advised by the Reserve Bank of India (RBI).
- Features:
- Eligibility: Any Indian National who has secured admission in a course run by Industrial Training Institutes (ITIs), Polytechnics,or in a school recognised by Central or State Education Boards or in a college affiliated with a recognised university, training partners affiliated to National Skill Development Corporation (NSDC) Sector Skill Councils, State Skill Mission, or State Skill Corporation can avail loan for the purpose.
- No specific restriction with regard to age.
- Courses: Aligned with NSQF.
- Duration of Course: No minimum duration.
- Quantum of Finance:Rs. 5,000-1,50,000. Now, increased to Rs 7.5 lakh.
- Moratorium: Duration of the course.
- Repayment Period:
- Loans up to Rs. 50,000: Up to 3 years.
- Loans between Rs. 50,000 to Rs. 1 lakh: Up to 5 years.
- Loans above Rs. 1 lakh: Up to 7 years.
- Coverage: Course fees and expenses for assessment, examination, study material, etc.
- Interest Rate: The interest rate to be charged by the bank should not be more than1.5% p.a. over and above repo-linked-lending-rate (RLLR) or any other external benchmark interest rate conforming to RBI guidelines.
- Collateral: The scheme does not allow for collateral to be charged from the beneficiary.
- Ministry of Skill Development and Entrepreneurship (MSDE), through a November 2015 notification, brought into force the Credit Guarantee Fund for Skill Development (CGFSSD) for all skill loans sanctioned on or after 15 July 2015, to be administered by the National Credit Guarantee Trust Company (NCGTC).
- Banks can apply to the NCGTC for a credit guarantee against defaults, and the NCGTC will provide this guarantee at a nominal fee which shall not exceed 0.5% of the amount outstanding.
- The guarantee cover will be for a maximum of 75% of the outstanding loan amount (including interest, if any).

Q1: What is the National Skill Development Corporation (NSDC)?
NSDC was set up as a one of its kind, Public Private Partnership Company with the primary mandate of catalyzing the skills landscape in India. Established on July 31, 2008, as a not-for-profit public limited company under section 25 of the Companies Act, 1956 (now corresponding to section 8 of the Companies Act, 2013), NSDC operate as a unique Public Private Partnership (PPP) model under the Ministry of Skill Development & Entrepreneurship (MSDE). Its 49% of the share capital is held by the government and 51% by the private sector.
Source: Budget 2024: Loan up to Rs 10 lakh for students' higher education, says FM
Angel Tax
24-07-2024
07:30 AM

Overview:
Recently, the Union Minister for Finance proposed to abolish ‘angel tax’ for all classes of investors, while presenting the Union Budget 2024-25 in Parliament.
About Angel Tax:
- It was levied on the capital raised via the issue of shares by unlisted companies from an Indian investor if the share price of issued shares is seen in excess of the fair market value of the company.
- The excess funds raised at prices above fair value are treated as income, on which tax is levied.
- It derives its genesis from section 56(2) (viib) of the Income Tax Act, 1961.
- It was first introduced in 2012 to prevent black money laundering through share sales.
- It was levied at a rate of 30.9% on net investments in excess of the fair market value.
- In 2019, the Government announced an exemption from the Angel Tax for startups on fulfillment of certain conditions. These are,
- The startup should be recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) as an eligible startup.
- The aggregate amount of paid-up share capital and share premium of the Startup cannot be more than ₹25 crores. This amount does not include the money raised from Non-Resident Indians (NRIs), Venture Capital Firms, and specified companies.
- For angel investors, the amount of investment that exceeds the fair market value can be claimed for a 100% tax exemption.
- However, the investor must have a net worth of ₹2 crores or an income of more than ₹25 Lakh in the past 3 fiscal years.

Q1: What are venture capital funds?
Venture capital funds are pooled investment funds that manage the money of investors who seek private equity stakes in startups and small- to medium-sized enterprises with strong growth potential. These investments are generally characterized as very high-risk/high-return opportunities.
Clarion-Clipperton Zone
24-07-2024
07:30 AM

Overview:
India will apply for licences from International Seabed Authority (ISA) to explore for deep-sea minerals in the Pacific Ocean especially plans to focus on the Clarion-Clipperton Zone.
About Clarion-Clipperton Zone:
- It is a vast plain in the North Pacific Ocean between Hawaii and Mexico.
- It is known to hold large volumes of polymetallic nodules containing minerals used in electric vehicles and solar panels including manganese, nickel, copper, and cobalt.
- First discovered by British sailors in 1873, the potato-shaped nodules take millions of years to form.
- Up to 30 cetacean populations, including globally endangered species like blue whales, can be found in the CCZ, where 17 exploratory deep-sea mining licenses have been granted.
Key facts International Seabed Authority (ISA)
- It is an international organization established in 1994 to regulate mining and related activities in the international seabed beyond national jurisdiction, an area that includes most of the world’s oceans.
- It came into existence upon the entry into force of the 1982 United Nations Convention on the Law of the Sea (UNCLOS), which codified international law regarding territorial waters, sea lanes, and ocean resources.
- Members: It has 169 Members, including 168 Member States and the European Union.
- Functions
- It is responsible for granting licenses and regulating activities related to the exploration and exploitation of mineral resources in the international seabed.
- It ensures that these activities are carried out in a manner that protects the marine environment and promotes the equitable and efficient utilization of resources.
- Headquarters: Kingston, Jamaica

Q1: What is UNCLOS?
UNCLOS stands for the United Nations Convention on the Law of the Sea. It is an international treaty that sets out the legal framework for the use and management of the world's oceans and their resources. The convention was adopted in 1982 and came into force in 1994 after it was ratified by 60 countries.
Source: India To Seek Licences To Scout Pacific Ocean For Critical Minerals
What is Climate Finance Taxonomy?
24-07-2024
07:30 AM

Overview:
Presenting the Union Budget for 2024-25, Finance Minister announced that the government would develop‘climate finance taxonomy’.
About Climate Finance Taxonomy:
- It is a system that classifies which parts of the economy may be marketed as sustainable investments.
- It helps guide investors and banks in directing trillions toward impactful investments to tackle climate change.
- Taxonomies are frequently used to set standards for classifying climate-related financial instruments (e.g., green bonds), but, increasingly, they serve other use cases where the benchmarking feature is viewed as beneficial, including in the areas of climate risk management, net-zero transition planning, and climate disclosure.
- South Africa, Colombia, South Korea, Thailand, Singapore, Canada, and Mexico are some of the countries which have developed taxonomies. The European Union has done this as well.
- Significance
- With global temperatures soaring, and the adverse effects of climate change exacerbating, countries need to transition to a net-zero economy — the balance between the amount of greenhouse gas (GHG) that is produced, and the amount that is removed from the atmosphere.
- It can play a pivotal role in doing this as they can help ascertain if economic activities are aligned with credible, science-based transition pathways.
- They can also give impetus to deployment of climate capital, and reduce the risks of greenwashing.
- It will enhance the availability of capital for climate adaptation and mitigation. This will help India achieve its climate commitments and green transition.

Q1: What are Sustainable Development Goals (SDGs)?
They recognize that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests.
Source: What is a climate finance taxonomy, announced by FM Sitharaman?