Current Affairs - Finance

The angel tax, introduced in 2012 under Section 56(2)(vii B) of the Income Tax Act, 1961, was designed to curb black money laundering through inflated share sales by taxing excess funds raised above fair market value at a rate of 30.9%. Recently, in the Union Budget 2024-25, the Union Minister for Finance proposed to abolish the angel tax for all classes of investors. This decision aims to boost investment in startups and simplify the tax landscape for emerging businesses.

The Small Industries Development Bank of India (SIDBI) received funding approval of $215.6 million from the Green Climate Fund to establish a $1 billion corpus for financing mitigation and adaptation projects for Medium and Small Enterprises (MSMEs). This fund aims to provide nearly 10,000 concessional loans to promote low-emission, climate-resilient technologies, contributing to substantial greenhouse gas emission reductions and benefiting millions of vulnerable communities.

India has released the first tranche of USD 2.5 million to the United Nations Relief and Works Agency (UNRWA) for Palestinian Refugees in the Near East as part of its annual contribution of USD 5 million for the year 2024-25. This financial support is part of India's ongoing commitment to aid and protect Palestinian refugees displaced by the 1948 conflict and their descendants, providing essential services such as education, healthcare, and social support.

The Asian Development Bank (ADB) approved a loan of USD 240.5 million to support the deployment of rooftop solar systems in India. This financing aids the government's renewable energy expansion efforts and aligns with India's goal of achieving 50% of its cumulative electric power capacity from non-fossil fuel sources by 2030. The funds will be allocated to the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD) to provide loans for installing these systems, contributing significantly to India's renewable energy targets and carbon emission reduction commitments.

The Indian government has released $2.5 million as the first tranche of its annual contribution of $5 million for the year 2024-25 to the United Nations Relief and Works Agency for Palestinian Refugees (UNRWA). This financial support aims to assist in providing essential services such as education, healthcare, relief, and social services to Palestinian refugees. India has been a consistent supporter of UNRWA's core programs, underscoring its commitment to the welfare of Palestinian refugees amidst ongoing conflicts.