Economy & Banking Current Affairs

Business, Economy and Banking in Current Affairs 2019 with latest news and current affairs in Agriculture, Industry, Banking, Capital Markets, Import and Export and Government schemes in commercial sector.

Pending Income Tax Refunds of Rs 62,361 crore paid to a total of 20,44,597 Taxpayers from 8th April to 30th June

Not only to health and freedom of movement, but the COVID-19 pandemic has also made a much larger financial impact on the economy for individuals and business entities (including MSMEs) across the world. Between 8th April to 30th June 2020 which had a total of 56 weekdays (Monday to Friday), the Income Tax Department of India has made 76 tax refunds per minute.

In total, more than Rs 62,361 crore has been refunded to Individual Taxpayers and Business Entities during this time period.  The complete Rs 62,361 crore of refunds were directly transferred into the bank accounts of the taxpayers.

19,07,853 Individual Taxpayers were paid a refund amounting to Rs 23,453.57 crore while 1,36,744 Business Entities were refunded a total of Rs 38,908.37 crore.

Background

On 8th April 2020, the Department of Revenue (under Union Ministry of Finance) issued a press note under which for Individual Taxpayers-all pending income tax refunds of up to Rs 5 lakh were asked to be refunded,  while for business entities-GST and Customs Refunds pending were also asked to be refunded to the Income Tax Department for providing immediate financial relief.

Second Tranche of India’s First Corporate Bond ETF will be offered from 14th July

The Second Tranche of India’s first Corporate Bond Exchange-Traded Fund (ETF)- Bharat Bond ETF will be open for subscription from 14th July to 17th July 2020.

Two new ETF series with maturities April 2025 and April 2031 will be offered under the new fund offer. The base price will be Rs 3,000 crore with oversubscription up to Rs 11,000 crore in the second tranche of Bharat Bond ETF.

In this maiden offer, the Bharat Bond ETF fetched Rs 12,400 crore. The base size of the issue under the first tranche of Bharat Bond ETF was Rs 7000 crore, it was oversubscribed 1.7 times that took the collections past Rs 12000 crores. Maturities of three years (April 2023) and ten years (April 2030) were issued under the first tranche.

Bharat Bond ETF

The initiative of Bharat Bond ETF was from the Department of Investment and Public Asset Management. The mandate to design and manage the Bharat Bond ETF was given to the Edelweiss Asset Management Company (Edelweiss AMC).

The plan for the first Corporate Bond ETF of India was announced by Finance Minister during the 2018-19 Union Budget Speech. The first Corporate Bond ETF of India or the subscription under the first tranche was launched on 12th December 2019, with the last date on 20th December 2019.