Daily Current Affairs (DCA) 15 March, 2025

Daily Current Affairs Quiz
15 March, 2025

International Affairs

1. China, Russia, and Iran Urge End to U.S. Sanctions

Context:

Representatives from China, Russia, and Iran have urged the United States to lift sanctions imposed on Iran’s nuclear program. The demand comes as Iran continues rapid advancements in its nuclear capabilities.

U.S. Approach and Trump’s Offer

• Former U.S. President Donald Trump had written a letter to Iran’s Supreme Leader Ayatollah Ali Khamenei, proposing renewed negotiations.
• The letter’s contents remain undisclosed, but it coincided with fresh sanctions under Trump’s “maximum pressure” policy.
• The strategy combined economic penalties with the threat of military action, while keeping open the possibility of a new agreement.

Iran’s Response

• Ayatollah Khamenei dismissed Trump’s offer, calling the U.S. a “bullying government” and expressing disinterest in negotiations.
• Iran remains opposed to talks under coercive conditions and seeks an end to economic restrictions before resuming diplomacy.

With tensions high, China and Russia have aligned with Iran, advocating for an end to U.S. sanctions and the resumption of multilateral nuclear talks. However, Iran remains skeptical of U.S. overtures, and diplomatic efforts face significant hurdles.

2. BRICS Trade & Climate Strategies Amid U.S. Tariff Threats

BRICS Currency Exchange Mechanism

• Objective: Reduce reliance on the U.S. dollar in trade.
• Approach: Develop systems for trade in national currencies to enhance flexibility.
• Impact
  • Strengthens economic ties among BRICS nations.
  • Reduces vulnerability to U.S. economic policies.
  • Supports a more diversified global financial system.

India-Brazil Bilateral Cooperation

• Key Sectors for Expansion
  • Pharmaceuticals:
    • Brazil aims to produce active pharmaceutical ingredients (APIs) for medicines like paracetamol, antibiotics, and diabetes treatments.
    • Seeks technology transfer and investment from Indian companies.
  • Renewable Energy & Ethanol:
    • Ongoing discussions on flex-fuel vehicle adoption in India.
    • Collaboration on ethanol production and blending policies.
    • Progress dependent on regulatory incentives.

Climate Finance & COP30 Priorities

• Brazil’s Role at COP30
  • Move from negotiation to implementation of climate goals.
  • Encourage countries to set stronger Nationally Determined Contributions (NDCs).
  • Align global action with the 1.5°C warming limit.
• Climate Finance Targets
  • Build upon the $300 billion pledged at COP29, aiming for $1.3 trillion in funding.
  • Mobilize multilateral banks & private investors to increase financing.
• Challenges Due to U.S. Withdrawal from Paris Agreement
  • The U.S. remains a major economy, but sub-national actors (states, businesses, civil society) continue climate efforts.
  • Brazil aims to expand partnerships beyond traditional players.

Way Forward

• BRICS is actively countering U.S. tariff threats through currency diversification in trade.
• Brazil-India ties are expanding, especially in pharmaceuticals and renewable energy.
• COP30 will focus on implementing climate goals, securing funding, and driving global climate action despite U.S. policy shifts.

National Affairs

1. Parliamentary Committee Calls for Revision of MGNREGS Wages

Context:

A parliamentary committee has strongly argued for the revision of wages under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in view of the rising cost of living.

Key Recommendations

• Revision of Wage Rates
  • The committee urged the government to revise MGNREGS wages in response to rising living costs.
  • Expressed disappointment over the government’s inaction despite repeated recommendations.
• Uniform Wage Structure
  • Proposed a uniform wage rate across all States and Union Territories.
  • Highlighted disparities in current wages, ranging from ₹234 (Nagaland & Arunachal Pradesh) to ₹374 (Haryana & Sikkim).
  • Argued that since the scheme is centrally funded, wage uniformity would ensure fairness and consistency.
• Reassessment of Wage Calculation Method
  • Criticized the current wage linkage to Consumer Price Index (CPI) for agricultural labourers, stating it does not accurately reflect inflation.
  • Recommended an updated wage calculation system to match ground realities.

Concerns Over Delayed Payments

• Pending liabilities as of February 15: ₹23,446.27 crore (including ₹12,219.18 crore in wage dues).
• Impact on Budget:
  • Out of the ₹86,000 crore allocated for the scheme in the current fiscal year, nearly ₹23,446 crore will be used to clear past dues.
  • Effective budget for new projects reduced to ₹62,553.73 crore, limiting the scheme’s effectiveness.

West Bengal’s Case & Centre-State Conflict

• Fund Suspension Since March 2022:
  • The Centre froze funds to West Bengal over allegations of corruption, citing Section 27 of MGNREGA, 2005.
  • Led to distress migration and economic hardships in rural areas.
• Committee’s Recommendation:
  • West Bengal should receive its rightful dues for eligible years, except for the disputed year in court.
• Political Fallout:
  • Trinamool Congress (TMC) has protested against the Centre’s decision.
  • Chief Minister Mamata Banerjee has written to the Centre and launched an alternative rural job scheme, Karmashree.

The committee’s report highlights urgent reforms needed in wage revision, payment efficiency, and equitable fund distribution to maintain MGNREGS’ role in preventing rural distress and ensuring livelihood security.

2. India’s Real-Money Gaming (RMG)

Key Concerns

• Rise of Illegal Offshore Gambling
  • Offshore gambling sites and apps are growing rapidly in India.
  • These platforms avoid regulations and taxes, undercutting legal RMG firms.
  • They operate using “mule” bank accounts and domain-switching tactics, making enforcement difficult.
• High Tax Burden on Legal RMG Firms
  • Legal RMG firms, including Dream11 and PokerBaazi, are subject to 28% GST.
  • Industry argument: Lowering taxes could make legal gaming more competitive and reduce illegal market growth.
  • Government stance: No policy change despite concerns over lost tax revenue.

Market Impact

• Illegal Market Growth
  • Offshore gambling firms are growing at a 30% CAGR, mirroring early growth patterns of legal RMG before GST imposition.
  • Legal RMG firms now see a slower growth rate of 10%-15%.
  • A 2024 industry report estimates the illegal betting market size at ₹8.2 lakh crore and expanding.
• Crackdowns & Challenges
  • Authorities have taken action against some platforms, e.g., Mahadev app.
  • Foreign-based firms like 1xBet are harder to curb due to their shifting banking providers and domains.

Industry Developments

• Consolidation in the RMG Sector
  • Head Digital Works acquired Adda52 for ₹491 crore.
  • Nazara Technologies (RMG + video games) bought a major stake in PokerBaazi (Moonshine Technology).
  • OneVerse acquired PokerDangal.
• Regulatory Uncertainty
  • The IT Amendment Rules, 2023, which propose self-regulation, remain on hold.
  • The government has not yet recognized any self-regulatory body.
  • In response, the industry has:
    • Supported studies on playtime limits.
    • Established a code of ethics to reinforce responsible gaming.

India’s legal RMG industry faces high taxes, slow growth, and unfair competition from unregulated offshore platforms. While industry consolidation continues, regulatory uncertainty and ineffective enforcement create challenges for both businesses and policymakers.

3. Aditya-L1 Mission

Context:

Scientists from the Indian Institute of Astrophysics (IIA) have observed a flareless CME using the Visible Emission Line Coronagraph (VELC) onboard Aditya-L1, India’s first dedicated solar research mission. The CME, detected on July 5, 2024, had no associated solar flare, providing insights into alternative mechanisms behind these solar eruptions.

Scientific Significance

• Advanced Observations with VELC
  • VELC provides closer and faster observations of the solar corona, surpassing existing coronagraphs.
  • The instrument enables detailed tracking of CME origins near the solar limb (edge of the Sun).
• Magnetic Instability & Differentiation
  • The study aims to differentiate magnetic instabilities that cause flares and CMEs.
  • Understanding their association is a key goal for solar physics.
• Solar Cycle & Future Observations
  • As the Sun approaches the peak of Solar Cycle 25, CME activity is expected to increase.
  • Continuous monitoring by VELC will provide valuable data for both Indian and global researchers.

Understanding Flares vs. CMEs

• Flares
  • Caused by magnetic reconnection.
  • Release energy as electromagnetic radiation.
• CMEs
  • Massive plasma eruptions (weighing ~trillion kg).
  • Travel up to 3,000 km/s through space.
  • Association with flares remains unclear.

This breakthrough observation strengthens India’s role in solar research, providing critical data to improve our understanding of CMEs and their link to solar flares. The study will soon be published in the Astrophysical Journal, a leading international scientific journal.

4. APAAR ID

Context:

The Ministry of Education has introduced the Automated Permanent Academic Account Registry (APAAR) ID to digitize student academic records. Linked with Aadhaar, APAAR aims to serve as a “single source of truth” for academic transcripts. While positioned as optional, implementation on the ground suggests coercive enforcement.

Key Concerns

Lack of Legal Mandate & Coercion in Implementation

• The Education Ministry states APAAR is not mandatory, yet schools and education authorities are pushing for 100% enrolment.
• States like Uttar Pradesh & Karnataka have set strict targets, pressuring schools and parents.
• Religious minority institutions and administrators face scrutiny over data mismatches.

Precedent of De Facto Mandates

• Similar to Aadhaar and Digi Yatra, APAAR risks becoming mandatory by default through widespread adoption.
• Past experience shows that once linked to essential services, formal mandates become a fait accompli.

Issues of Mismatched Data & Enrolment Failures

• Errors in names and records can result in students being denied access.
• Without robust error resolution mechanisms, students may face difficulties in availing benefits.

Privacy & Data Protection Risks

• The Digital Personal Data Protection Act, 2023 has not yet taken effect, raising concerns about data security.
• The Supreme Court ruling on Aadhaar states that it cannot be mandated for basic education, yet APAAR circumvents this in spirit.

Recommendations

• Legislative Backing: Any large-scale education record digitization should be supported by clear legal frameworks.
• Informed Consent: Enrollment must be truly voluntary, with no punitive measures for opting out.
• Transparent Data Security Measures: The government should ensure robust privacy protections before full-scale rollout.

APAAR, though beneficial in concept, is being implemented in a way that undermines voluntary participation and raises serious privacy concerns. Without clear legal safeguards, it risks becoming another covertly mandated digital ID, echoing past controversies surrounding Aadhaar.

5. India-Bangladesh Naval Exercise Bongosagar 2025

Context:

Despite strained political ties since Sheikh Hasina’s removal in August 2024, the India-Bangladesh naval exercise “Bongosagar 2025” and the Coordinated Patrol in the Bay of Bengal proceeded as scheduled. This indicates that defence relations remain stable even as political tensions persist.

Details of the Naval Exercise

• Participants
  • Indian Navy: INS Ranvir (destroyer).
  • Bangladesh Navy: BNS Abu Ubaidah (frigate).
• Objective
  • Enhance interoperability between the two navies.
  • Strengthen coordination in tactical planning, joint operations, and maritime security.
• Operations Conducted
  • Surface firing exercises.
  • Tactical manoeuvres & underway replenishment.
  • Communication drills for better coordination.
  • Visit, board, search, and seizure operations to tackle maritime threats.
  • Information-sharing protocols for improved regional security.

Strategic Implications

• Strengthening Regional Security
  • India and Bangladesh continue to collaborate on maritime security, ensuring stability in the Bay of Bengal, a critical geopolitical zone.
  • This reflects their commitment to India’s SAGAR (Security and Growth for All in the Region) initiative.
• Countering China’s Influence
  • The Indian Ocean is witnessing increased strategic competition, with China’s expanding presence raising concerns.
  • India’s growing maritime partnerships with Bangladesh, Mauritius, and other regional players aim to counterbalance China’s influence.
• India-Mauritius Defence Partnership
  • India-Mauritius Joint Vision 2025 reaffirms commitments to maritime security cooperation.
  • Key agreements include:
    • Increased ship and aircraft deployments for joint surveillance.
    • Strengthening Mauritius’ exclusive economic zone security.
    • Expanding use of Agalega Island’s new runway and jetty for defence purposes.
    • Setting up a National Maritime Information Sharing Centre in Mauritius.

The Bongosagar 2025 exercise underscores that while political ties between India and Bangladesh remain tense, military cooperation continues undisturbed. India’s broader maritime security efforts—especially with Mauritius and other regional players—reflect its strategic push to counter China’s growing influence in the Indian Ocean.

6. PM-ABHIM Funds

Context:

Underutilization of allocated funds despite capital-intensive infrastructure projects under PM- ABHIM.

• Budget Estimates (BE) vs. Revised Estimates (RE) trend
  • FY25: BE ₹3,200 crore, RE reduced to ₹3,000 crore, only ₹2,007 crore (66.9%) spent till February 2025.
  • FY24: BE ₹4,200 crore, RE halved to ₹2,100 crore, actual spending ₹1,805 crore.
  • FY23: BE ₹4,176 crore, RE ₹2,100 crore, actual spending ₹1,885 crore.
• Consistent slow pace of expenditure in early phases of the financial year.

Recommendations by the Committee

• Frontloaded disbursement strategy:
  • A larger portion of the budget to be released in the first quarter.
  • States must submit detailed project implementation plans to access early funds.
• Enhanced state-level support:
  • Technical assistance and capacity building to expedite project approvals.
  • Regular monitoring to ensure timely execution.

Progress and Delays in Infrastructure Projects

• Total units approved: 13,081
• Completion rate: Only 5,682 units (43%) finished
• Component-wise progress:
  • Urban Ayushman Arogya Mandirs (UAAMs): 68% completion.
  • Sub-Health Centres (SHCs): 39% completion.
  • Block Public Health Units (BPHUs): 31% completion.
  • Integrated Public Health Labs (IPHLs): 32% completion.
  • Critical Care Blocks (CCBs): Only 3% completion (10 out of 394 units operational).

Major Challenges Identified

• Land acquisition delays, especially for CCBs.
• Slow execution despite efforts like preponing activities and regular reviews.
• Need for improved coordination between the Centre and states for smoother project implementation.

The panel emphasized the need for frontloaded fund disbursement, technical support to states, and strict project monitoring to improve execution under PMABHIM. Despite progress, delays in critical infrastructure like CCBs remain a major concern, necessitating faster approvals and better planning.

Banking/Finance

1. Microfinance Sector Seeks Refinancing Body & IMEF Reforms

Key Industry Demands

• Creation of a Dedicated Refinancing Institution
  • Proposal to convert MUDRA Bank into a specialized refinancing entity exclusively for MFIs.
  • Currently, MUDRA funds banks, small finance banks, and regional rural banks, which already receive support from NABARD.
  • A dedicated refinancing institution for standalone MFIs could enhance access to low-cost capital.
• Reforms in the India Microfinance Equity Fund (IMEF)
  • IMEF Corpus Increase: Currently at ₹300 crore, industry demands an increase in corpus to support more MFIs.
  • Higher Loan Limits: Maximum funding per MFI is ₹5 crore; proposal to raise this limit for better financial support.
  • Flexibility in Fund Utilization: Allowing a greater proportion of IMEF to be used as equity would improve MFIs’ ability to attract institutional investors.

Current Microfinance Landscape

• Sector Growth Trends
  • Total Microfinance Assets: ₹4.14 trillion (Q3FY25).
  • Annual Growth: 7.6% YoY increase.
  • Quarterly Decline: 4.3% QoQ drop, indicating potential funding constraints.
• Challenges with IMEF Utilization
  • Limited Reach:
    • In FY24, only ₹19 crore sanctioned to 10 MFIs.
    • Many MFIs unable to access IMEF funds due to structural limitations.
  • Equity Constraints:
    • Lack of adequate equity funding hinders leveraging additional investment from domestic and foreign institutional investors.

Potential Solutions & Government Response

• Conversion of MUDRA Bank into a Dedicated MFI Refinancer
  • Would provide low-cost refinance exclusively for MFIs.
  • Reduces MFIs’ dependency on commercial banks for funding.
• Alternative Mechanism via NABARD
  • If MUDRA conversion is not feasible, NABARD could administer a new fund dedicated to MFIs.
• Budgetary Considerations
  • Speculation before Union Budget FY25 hinted at a new fund similar to IMEF to address MFI funding challenges.
  • Industry has engaged with the Finance Ministry & RBI on increasing the IMEF corpus & funding limit.

Way Forward

• A specialized refinancing body for MFIs would ensure better liquidity access and reduce reliance on banks.
• IMEF reforms—including higher funding limits, equity flexibility, and corpus expansion—could boost financial stability in the microfinance sector.
• Industry players are awaiting policy decisions from the Finance Ministry and RBI to enhance funding sustainability for MFIs.

2. MSME Industry Seeks E-commerce Export Reforms from RBI

Key Challenges in Current Regulations

• Manual Reconciliation Issues
  • Matching shipping bills with inward remittances (IRMs) manually is impractical for high-volume e-commerce exports.
  • Current system leads to delays, excessive documentation, and operational inefficiencies.
• High Compliance Costs
  • Shipping bill regularization fees range from ₹200 to ₹2,500 per shipment, disrupting cash flow.
  • Small exporters face excessive banking fees, unpredictable logistics costs, and high warehousing expenses.
• Documentation Burden
  • Exporters must submit cover letters, Foreign Inward Remittance Certificates (FIRCs), payment gateway statements, and CA certificates.
  • Delays in shipping bill closure worsen cash flow constraints.
• Logistics Challenges
  • High shipping costs make small-value shipments ($25 or 2 kg) unviable.
  • Fluctuating shipping rates and expensive warehousing solutions further reduce profit margins.

Industry Proposals to the RBI

• Automation of Reconciliation via AI
  • Request for an AI-powered system within the Export Data Processing and Monitoring System (EDPMS) to auto-match IRMs with shipping bills.
  • The system should account for marketplace fees, refunds, and variations in remittance amounts.
  • Enable bulk transaction uploads to eliminate manual processing of each bill.
• Reduction in Compliance Costs
  • Standardized fees for shipping bill regularization (e.g., ₹5,000 annual reconciliation fee for exporters under ₹5 crore turnover).
  • Limit per-bill charges to ₹100 for transactions over $1,000.
  • Remove CA certificate requirement for MSMEs with turnover ≤ ₹5 crore, replacing it with self-declaration forms.
• Simplification of Reporting for Small Shipments
  • Exempt small shipments (under $1,000) from EDPMS reporting.
  • Allow annual declaration of these transactions via a simplified system.
• Establishment of a Digital Dispute Resolution Portal
  • To address unfair penalties, processing delays, and disputes within seven days.

Industry’s Urgent Call for Action

• Government’s $200 billion e-commerce export target by 2030 requires regulatory streamlining to sustain and expand MSME participation.
• High regulatory costs & procedural bottlenecks discourage small exporters, impacting India’s global e-commerce trade potential.
• MSME bodies urge RBI to take swift action to ease compliance and reduce financial burdens.

Way Forward

• AI-driven automation, fee standardization, and reduced documentation are essential to enhance efficiency in e-commerce exports.
• Addressing logistics, compliance, and reconciliation challenges will help small exporters scale operations and improve cash flow.
• RBI’s policy interventions can unleash the full potential of MSME-driven e-commerce exports and accelerate India’s export growth.

3. NaBFID’s Credit Enhancement & Infrastructure Financing Plans

Credit Enhancement & Counter-Guarantees

• NaBFID is in talks with multilateral agencies (World Bank, ADB) for counter-guarantees on infrastructure project financing.
• Purpose
  • Reduces risk weightings, making infrastructure debt more attractive for investors.
  • Helps develop the bond market by increasing investor confidence.
• How it works
  • NaBFID provides a first-loss guarantee—if a bond defaults, NaBFID pays investors first.
  • Multilateral agencies provide counter-guarantees, similar to reinsurance, further reducing risk.

Focus Areas for Credit Enhancement Deals (FY26 Onward)

• Target Sectors:
  • Renewable energy
  • Annuity-based road projects
• Expected Benefits:
  • Improves credit ratings of bonds to “AA” or “AA+” → makes them eligible for pension & insurance fund investments.
  • Refinancing through guarantee-backed bonds can free up commercial banks’ funds for further lending.

NaBFID’s Digital Transformation in Project Finance

• Developing an AI-driven underwriting system for project finance (ready in three months).
• Building a data repository for a one-stop project finance solution.
• Challenges
  • Unlike retail lending, project finance requires manual intervention due to the complexity of risk assessment.
  • Adoption of technology in project finance is at a nascent stage compared to retail banking.

NaBFID’s Market Position & Growth

• Current Loan Book: ₹ 60,000 crore (~$7.2 billion).
• Market Share: ~2% of India’s ₹ 30 trillion infrastructure finance market.
• Growth Target: ₹ 3 trillion loan book by FY28.
• Top 20 borrower accounts:
  • Constitute 90.5% of the loan book (as of June 2024).
  • 63.18% in AAA category, 23% in AA-AA+ segment.

Strategic Impact & Future Roadmap

• Lower Cost of Funds: Counter-guarantees reduce borrowing costs for infrastructure projects.
• Encourages Long-Term Investors: Pension & insurance funds can invest in enhanced-rated infrastructure bonds.
• Boosts Bank Liquidity: Refinance via bonds frees up bank funds for further lending.
• Tech-Driven Efficiency: AI & digital platforms aim to streamline project finance assessments & monitoring.

NaBFID’s strategic focus on credit enhancement, refinancing, and digital innovation positions it as a key enabler in India’s infrastructure financing ecosystem.

4. Digital Debt Collection in Microfinance

Rise in Digital Debt Collection Amid MFI Stress

• Increased Delinquencies
  • Stress in microfinance sector doubled (April–September FY25).
  • Stressed assets (31-180 DPD) rose from 2.15% in March 2024 to 4.3% in September 2024 (RBI data).
  • Collection efficiency for personal loans dropped from 95% (June 2023) to 93% (December 2023) (ICRA data).
• Factors Contributing to Stress
  • Higher festive spending.
  • Lower priority given to personal loan repayments.
  • Loans distributed in diverse ways by MFIs, requiring complex reconciliations.

Role of Digital Collection Platforms

• Services Offered:
  • Automated reminders (calls, WhatsApp, SMS).
  • AI-based risk scoring & segmentation for borrowers.
  • Field staff analytics for targeted recovery strategies.
  • Mobile apps for on-ground collections.
• Key Players:
  • Spocto X (Yubi Group) – Digitizing the debt collection process with real-time tracking & ethical collections.
  • Credgenics – Focused on reconciling diverse lending structures & field visit optimization.

Shift Towards Hybrid Collection Strategies

• Traditional vs. Digital Methods:
  • MFIs, banks, and NBFCs previously relied on business correspondents (BCs) & field agents for collections.
  • Increasingly using digital platforms to assist these agents with automated follow-ups.
  • AI-driven risk analysis helps lenders prioritize high-risk accounts for field visits.

Implications for the Microfinance Sector

• Improved Collection Efficiency: Faster and cost-effective follow-ups with borrowers.
• Lower Defaults: Proactive engagement via digital channels reduces borrower disengagement.
• Data-Driven Recovery Strategies: AI-backed risk segmentation & analytics enhance decision-making.

With rising stress in microfinance loans, lenders are rapidly adopting digital debt collection platforms to improve recovery rates, optimize field operations, and enhance borrower engagement. AI-driven analytics and hybrid collection strategies will shape the future of MFI loan recovery in India.

Economy

1. Gold Surges Past $3,000 Amid Market Turmoil

Context:

• Gold Price Milestone: Spot gold hit an all-time high of $3,004.86 before settling at $2,991 per ounce.
• Futures Surge: U.S. gold futures climbed 0.4% to $3,002.30.
• Year-to-Date Performance: Gold has risen nearly 14% in 2025.

Key Drivers Behind Gold’s Rise

• Trump’s Tariff War: Protectionist policies and tariffs have triggered economic uncertainty, pushing investors toward safe-haven assets.
• Stock Market Sell-Off: U.S. stock markets lost $4 trillion, with the S&P 500 entering correction territory.
• Central Bank Demand: China has increased its gold reserves for four consecutive months, signaling a move away from the volatile U.S. dollar.
• Fed Rate Expectations: Anticipation of monetary easing by the U.S. Federal Reserve has boosted gold’s appeal.

Potential Risks & Outlook

• Possible Correction: If trade tensions ease and stock markets recover, gold could face a sharp correction.
• Market Uncertainty: Continued economic instability and Fed policy shifts will determine gold’s next move.

Gold’s historic rally past $3,000 reflects investor anxiety over trade policies, stock market losses, and central bank strategies. While the safe-haven demand remains strong, a resolution in trade disputes could trigger a downturn in gold prices.

2. Block Assessment Scheme for Income Tax Search Cases

Key Changes in Tax Filing for Search Cases

• Single Consolidated Return
  • Taxpayers will now file one return covering six years plus the part-year of investigation.
  • Replaces the need for separate filings for each year under scrutiny.
  • Aligns with the block assessment scheme introduced on September 1, 2024.
• Unified Income Assessment
  • All undisclosed income from the block period will be assessed together, rather than year-wise reassessments.
  • Aims to reduce duplication, legal disputes, and reassessments of already disclosed income.

Expected Benefits

• For Taxpayers:
  • Faster resolution of search cases.
  • Lower compliance burden due to fewer filings.
  • Reduced legal disputes as income is assessed holistically.
• For Tax Authorities:
  • More efficient tax administration with streamlined assessments.
  • Prevents reassessment issues that arise in multi-year investigations.

Unresolved Issues

• Concerns on Timing of Income Recognition
  • If tax authorities insist on taxing certain income in Year 1, but the taxpayer reports it in Year 3, will the consolidated return resolve this timing mismatch?
• Treatment of Losses & Refunds
  • Will taxpayers be able to set off losses in a later year against income from an earlier year?
  • Current tax laws do not provide for such adjustments, limiting potential benefits.
• Administrative Convenience vs. Substantive Relief
  • If the scheme does not address timing differences or loss set-offs, it may merely be a procedural simplification rather than a significant tax relief measure.

Way Forward

• Positive Move: The new system simplifies tax compliance and speeds up assessments.
• Areas for Improvement: Addressing income recognition mismatches, loss adjustments, and refund claims will enhance its effectiveness.
• Next Steps: The government may need to clarify how losses, refunds, and tax adjustments across multiple years will be handled under this new system.

Facts To Remember

1. RBI Sets Final Redemption Price for Sovereign Gold Bonds (SGBs) at ₹8,624 per Unit

Redemption Price Announcement

Calculation Method: Based on the simple average of closing gold prices from March 10-13, 2025.

Final Redemption Price: ₹8,624 per unit for SGBs maturing on March 17, 2025.

2. Mark Carney sworn in as Prime Minister of Canada

Mark Carney, a former central banker, was sworn in as Canada’s new Prime Minister on Friday amid escalating tensions with the U.S., including tariffs and annexation threats from President Trump. He replaced Justin Trudeau, who resigned after nearly a decade in office.

3. India Participates in 353rd Governing Body Meeting of International Labour Organisation in Geneva

India has reaffirmed its commitment to continue to act as a leading voice on advancing labour welfare, quality employment and social justice at global forums. 

4. ISRO successfully conducts flight acceptance hot test of Cryogenic Engine for LVM3 launch vehicle in Tamil Nadu

The Indian Space Research Organisation (ISRO) has successfully completed the flight acceptance hot testing of the cryogenic engine designated for the sixth operational mission of the LVM3 launch vehicle (LVM-M6). 

5. Today is World Consumer Rights Day

Today is World Consumer Rights Day. It is celebrated on the 15th of March annually to serve as an essential reminder of the need to uphold consumer rights and protection.

6. Maharashtra secures second position under Pradhan Mantri Surya Ghar Yojana

Maharashtra has secured the second position in the country under the Pradhan Mantri Surya Ghar Yojana. This was informed by state Chief Minister Devendra Fadnavis on social media.

7. SpaceX & NASA launch Crew-10 mission to bring home stranded astronauts Sunita Williams and Butch Wilmore

SpaceX and NASA have launched a mission to bring back US astronauts Sunita Williams and Butch Wilmore from the International Space Station (ISS), where they have been stranded for nine months.

8. India’s foreign exchange reserves surge by over 15 billion dollars, crossing 653 billion dollar mark

India’s foreign exchange reserves surged by 15.26 billion dollars, reaching over 653.96 billion dollars in the week ending March 7, bolstered by the Reserve Bank of India’s (RBI) currency swap operations last month.