1. ANGEL TAX (Syllabus: GS Paper 3 – Economy)

Context: In a major relief for India's burgeoning start-ups, Finance Minister Nirmala Sitharaman announced the removal of the controversial angel tax on foreign investments, a move expected to alleviate their funding challenges.

Angel Tax

• About: It refers to the income tax that the government imposes on funding raised by unlisted companies, or startups, if their valuation exceeds the company's fair market value.
• Introduced in India: Pranab Mukherjee in 2012.
• Under: Section 56(2)(viib) of the Indian Income Tax Act.
• Tax rate: The effective rate of the angel tax is 30.6%.
• Aim: To curb the practice of issuing shares at a premium much higher than their fair value, which could potentially involve money laundering or tax evasion.
• Applicability: Angel Tax was applicable to startups and unlisted companies that raised capital through the issue of shares.

o If the issue price of the shares exceeded the fair market value, the excess amount was treated as income and taxed according.

• Exemptions: The entity should be a DPIIT recognized Startup; Aggregate amount of paid up share capital and share premium of the Startup after the proposed issue of share, if any, does not exceed INR 25 Crore.
• DPIIT Recognition: 

o Startups seeking exemption from Angel Tax were required to be recognized by the DPIIT. 

o The criteria for recognition included innovation, scalability, and the potential to generate employment.

• Eligibility Criteria for Startup:

o Turnover should be less than INR 100 Crores in any of the previous financial years.

o An entity shall be considered as a startup up to 10 years from the date of its incorporation.

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2. CAPITAL GAINS TAX (Syllabus GS Paper 3 – Economy)

Context: Investors are disappointed with the numerous amendments to capital gain provisions proposed in the Budget. These changes have raised concerns about the impact on investment returns.

Capital Gains Tax

• About: It is a tax imposed on the profits (gains) derived from the sale of assets such as land, shares, etc.
• Types of Capital Gains:

o Long-Term Capital Gains (LTCG): Gains made on assets held for a period exceeding three years (one year for shares and mutual funds).

o Long-term gains on all financial and non-financial assets will attract a tax rate of 12.5% instead of 10%.

o Short-Term Capital Gains (STCG): Gains made on assets held for a period of three years or less.

o short-term capital gains on "specified" financial assets will henceforth attract a tax rate of 20% instead of 15%.

• Benefit: It was proposed to increase the limit of exemption of capital gains on certain listed financial assets from ₹1 lakh to ₹1.25 lakh per year.
• Capital Assets: Land, building, house property, vehicles, patents, trademarks, leasehold rights, machinery, and jewellery are a few examples of capital assets. 

o This includes having rights in or in relation to an Indian company. It also includes the rights of management or control or any other legal right.

• Inherited Property: Capital gains are not applicable to an inherited property as there is no sale but only a transfer of ownership. 

o The Income Tax Act has specifically exempted assets received as gifts by way of inheritance or will. However, if the person who inherited the asset decides to sell it, capital gains tax will be applicable.

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3. NATIONAL MISSION ON CULTURAL MAPPING (Syllabus: GS Paper 1 – Art and Culture)

Context: Under the National Mission on Cultural Mapping (NMCM), the government has initiated a project to comprehensively document the cultural heritage of 650,000 villages across India.

National Mission on Cultural Mapping (NMCM)

• About: The Ministry of Culture approved the NMCM in 2017 to build a comprehensive database of artists, art forms, and other resources from organizations under the Ministry.
• Objective: The project aims to create awareness about the strong connection between cultural heritage and development, and to preserve the cultural identity of rural communities.

oIt also includes the creation of National Registers of Artists and Art Practices, as well as the development of a web portal and mobile app to serve as a National Cultural Work Place (NCWP).

• Scope: It encompasses data mapping, demography building, formalizing the processes, and bringing all cultural activities under one umbrella for better results.
• Duration and Phases: The work on creating a database for folk arts and mapping the heritage of villages would be carried out over five years (from 2017).
• Coverage Statistics: The Census List of 2011, published by the Registrar General and Census Commissioner of India, has identified 45,561 villages of Bihar, of which 36,127 have been covered by the cultural mapping project. In the Khagaria district, 262 of the 303 villages have been covered.

Mera Gaon Meri Dharohar (MGMD)

• About: It is a nationwide initiative led by the Ministry of Culture as part of the National Mission on Cultural Mapping, inaugurated on July 27th, 2023.
• Objective: The primary aim of this endeavour is to culturally map all 6.5 lakh villages across 29 States and 7 Union Territories of India onto a comprehensive virtual platform.

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4. PM MUDRA YOJANA (Syllabus: GS Paper 3 – Economy)

Context: Recently, the Finance Minister of India announced an increase in Mudra loan limits from Rs 10 lakh to Rs 20 lakh.

PM Mudra Yojana

• About: Initially, PMMY offers unsecured loans of up to 10 lakh to small/micro enterprises that are non-corporate and non-farm in nature.
• Launched: In 2015
• Objective: To encourage young people to become 1st generation entrepreneurs.
• Eligible Banks for Loan: Banks, NBFCs, Micro finance Institutions (MFIs) and financial intermediaries as notified by MUDRA Ltd.
• Loan Instruments:

o Shishu: covers loans up to Rs 50,000/-

o Kishor: covers loans above Rs 50,000/- and upto Rs. 5 lakh

o Tarun: covers loans above Rs 5 lakh and up to Rs 10 lakh.( Now from Rs 10 lakh to Rs 20 lakh).

Benefits:

• The PMMY scheme offers up to INR 10 lakhs, providing a substantial sum to support the needs of small units, startups, and MSMEs.
• Loans under PMMY are unsecured, meaning that borrowers do not need to provide any collateral to access funding.
• The loan disbursement process is streamlined and simplified, accommodating small units that may lack extensive documentation.
• The scheme supports startups and small entrepreneurs by having the government act as a guarantor, reducing the risk for banks and encouraging lending.
• Borrowed funds can be utilized for various business needs, including equipment procurement, geographical expansion, and brand promotion.

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5. INDEXATION (Syllabus: GS Paper 3 – Economy)

Context: In the Union Budget 2024 speech, the Finance Minister of India announced the removal of indexation benefits for property sales, signaling a major shift in tax policy for real estate transactions.

Indexation 

• About: It refers to the adjustment of the cost of an asset for inflation while calculating capital gains for taxation purposes in India. In real estate, this asset can be any property.
• Calculation: The Cost Inflation Index (CII) is used by the income-tax department to adjust the acquisition cost for inflation. This adjustment lowers long-term capital gains tax. 

oThe CII is published annually by the central government.

• Base Year: Initially set at 1981, the base year for CII was later changed to 2001 with a base value of 100. 
• The Budget has removed the indexation benefit for all assets except property acquired before 2001. This change is expected to increase capital gains tax on long-term capital assets.
• Indexation Works: Indexation adjusts the purchase price of a property to account for inflation. The capital gain is calculated as the difference between the selling price and the inflation-adjusted purchase price. A 20% tax was previously applied to these gains.
• Benefit: Indexation helps taxpayers by accounting for inflation, reducing the taxable amount of capital gains and thereby lowering the tax liability.
• Changes with Budget 2024: From July 23, indexation benefits will no longer apply to properties sold. 

o Sellers will pay a 12.5% tax on the difference between the selling price and the original price. Indexation benefits will still be available for properties bought before April 1, 2001. 

o For properties purchased after this date, indexation benefits are no longer applicable.

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6. S. THERMOPHILUS (Syllabus: GS Paper 3 - Sci and Tech)

Context: Scientists at the Agharkar Research Institute (ARI) in India have discovered a new strain of lactic acid bacteria while studying the genetic makeup of a different S. thermophilus strain.

1. 
   thermophilus 

• About: S. thermophilus is a gram-positive, non-motile, and non-sporulating bacterium that can grow under both aerobic and anaerobic conditions.
• Probiotic Function: It is a type of probiotic ("good" bacteria) found in the digestive tract.
• Lactic Acid Production: It produces lactic acid in the gut by converting lactose into lactic acid.
• Digestive Benefits: S. thermophilus helps break down food, absorb nutrients, and combat "bad" organisms that might cause diseases.
• Lactose Intolerance Improvement: It can help improve lactose digestion in individuals who are lactose intolerant.
• Anti-Inflammatory Properties: The bacterium has anti-inflammatory properties and may help reduce the risk of inflammatory bowel disease.
• Uses: S. thermophilus is commonly used to produce fermented dairy foods such as yogurt.

oIt is also used in probiotic supplements.

• Limited Evidence for Some Uses: While people use S. thermophilus for conditions like diarrhea, constipation, and colic, there is no strong scientific evidence supporting these uses. Similarly, there is no good evidence to support its use for COVID-19.

Strain MCC0200

• About: It is a newly discovered strain of lactic acid bacteria.
• Found: Thrives in the Gut, it has a strong affinity for intestinal surfaces and interacts effectively with host cells.
• Adheres to Mucosal Surfaces: This adhesion ability is crucial for promoting gut health and immune function.
• Antioxidant Properties: MCC0200 has antioxidant properties that help reduce oxidative stress-induced damage.

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7. SECURITIES TRANSACTION TAX (STT) (Syllabus: GS Paper 3 – Economy)

Context: The Union Budget has increased the securities transaction tax (STT) on futures and options (F&O), reflecting market expectations.

Securities Transaction Tax (STT)

• About: It is a direct tax levied at the time of purchase and sale of securities listed on stock exchanges in India.
• Definition of Securities: These are tradable investment instruments such as shares, bonds, debentures, equity-oriented mutual funds (MFs), issued either by companies or the Indian government.
• Implementation: This tax was introduced in the 2004 Union Budget and came into effect from 1 October 2004.
• Governing Legislation: STT is governed by the Securities Transaction Tax Act (STT Act), which specifies various taxable securities transactions.
• Rates of STT: The rate of STT differs based on the type of security traded and whether the transaction is a purchase or a sale.
• Rate Determination: These rates are decided by the central government.
• Purpose of STT: The initiative behind introducing STT was to curb the evasion of capital gains tax on profits earned from trading in securities.
• Taxable Securities: Equity, derivatives, units of equity-oriented mutual funds, unlisted shares sold under an offer for sale in an IPO, and subsequently listed shares.

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8. AIR BREATHING PROPULSION TECHNOLOGY (Syllabus: GS Paper 3 – Sci and Tech)

Context: Indian Space Research Organisation (ISRO) successfully carried out the second experimental flight for the demonstration of Air Breathing Propulsion Technology.

Air Breathing Propulsion Technology

• About: In this Technology, rockets carry fuel but not an onboard oxidizer, utilizing atmospheric oxygen as the oxidizer for combustion. This results in a lighter and more efficient rocket.
• Types of Air-Breathing Propulsion:

o Ramjet: Utilizes supersonic combustion and relies on the engine's forward motion to compress incoming air, lacking any rotators.

o Scramjet: An advanced version of the Ramjet that operates at hypersonic speeds (greater than Mach 5) and performs well at high speeds through supersonic airflow and combustion.

o Dual-Mode Ramjet (DMRJ): A versatile engine that transforms from a ramjet to a scramjet between Mach 4-8, capable of operating in both subsonic and supersonic combustor modes.

• Advantages: Results in a significantly lighter and more efficient rocket by utilizing atmospheric oxygen.
• Operational Limitations: Effective only within the Earth's denser atmosphere (up to 70 kilometers), after which a different propulsion stage with both fuel and oxidiser is needed.
• Technological Benefits: Lowers costs and improves payload fraction by eliminating the need to carry an oxidiser.
• India's Achievement: In 2023, India became the fourth country to successfully demonstrate the flight testing of a Scramjet Engine.

  Applications of Air-Breathing Propulsion System

  • Spaceplane: Can enter orbit or travel through space while taking off and landing like a conventional plane.
  • Missile: Used for hypersonic missile launchers.
  • Rockets: Employed for satellite launches into orbit.
  • Future Plans: ISRO aims to integrate air-breathing engines with a reusable launch vehicle.

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9. WORLD INTELLECTUAL PROPERTY ORGANIZATION (Syllabus: GS Paper 3 – Economy)

Context:  NITI Aayog and the World Intellectual Property Organization (WIPO) have signed a Joint Letter of Intent (JLoI) under the Atal Innovation Mission (AIM) to develop programs focused on innovation, entrepreneurship, and intellectual property for global south countries.

World Intellectual Property Organization (WIPO)

• About: It is the global forum for intellectual property (IP) services, policy, information, and cooperation.
• Formation: 1967.
• Funding: It is a self-funding agency of the United Nations. It is one of the 15 specialized agencies of the United Nations (UN).
• Members: 193 members. (India is a member)
• Headquarters: Geneva, Switzerland.
• Mission: To lead the development of a balanced and effective international IP system that enables innovation and creativity for the benefit of all.
• Report: It releases the Global Innovation Index (GII) annually. 

o As per the GII 2023 report, India had retained the 40th position of 132 economies featured in the GII ranking.

o As per WIPO Report 2022, India has experienced sixth straight year of growth in patent filing, posting the highest growth of 31.6% globally. 

o Importantly, a substantial increase in resident filings was the main driver of growth overall in 2022.

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10. KALARIPAYATTU (Syllabus: GS Paper 1 – Art and Culture)

Context: The Ministry of Youth Affairs & Sports has recognized the Kalaripayattu Federation of India for its significant efforts in promoting Kalaripayattu across the country.

Kalaripayattu

• About: It comes from the South Indian state of Kerala and is often considered the oldest martial art in the world.
• Name Meaning: The term "Kalarippayattu" translates to a place (kalari) for training or fight (payattu).
• Historical Context:

o Early Evidence: Historical sources indicate that kalarippayattu existed from at least the 12th century AD.

o Development: The martial art appeared as a cohesive system of physical exercises linked with spiritual practice around the 12th century, though its foundations predate this period.

o Kerala’s Golden Age: The 9th and 10th centuries marked a period of significant development for Kerala, with the region divided into districts ruled by kings.

• Styles of Kalaripayattu:

o Northern Style (Wadakkan): Predominantly practiced in the northern part of Kerala.

o Southern Style (Tekkan): Practiced in the southern regions of Kerala.

o Central Style: Refers to the central region of Kerala.

• Stages of Payattu

o Maippayattu: Body conditioning exercises.

o Kolthari: Use of wooden weapons.

o Angathari: Use of sharp metallic weapons.

o Verumkai: Bare-handed defense and attack.

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