The Top Current Affairs for UPSC of 01 May/2023.

 

CBDT eyes big-money spenders to broaden tax base by 10%

The Central Board of Direct Taxes (CBDT) is planning to broaden India's tax base by 10% by targeting big-money spenders. The move is aimed at increasing tax revenue and reducing the country's reliance on borrowing to fund its budget.

The CBDT is focusing on individuals who spend more than Rs 1 crore ($135,000) annually on credit cards or pay rent of over Rs 1 lakh ($1,350) per month. The tax authority is planning to use data from banks, credit card companies, and other sources to identify such high spenders.

The CBDT believes that there is a significant potential for revenue generation from such individuals who are not currently paying taxes or are under-reporting their income. The tax authority is planning to take strict enforcement action against non-compliant taxpayers.

The move is part of the government's efforts to widen the tax base and increase tax compliance. The government has set a target of collecting Rs 11.08 lakh crore ($149 billion) in direct taxes in the current fiscal year, up from Rs 9.45 lakh crore ($127 billion) in the previous year.

Nevertheless, the CBDT is pushing ahead with its plan to target big-money spenders and increase tax revenue. The tax authority is expected to launch a nationwide campaign to identify such individuals and enforce tax compliance.

Command Cyber Operations and Support Wings for cyberspace challenges

The United States military has established Command Cyber Operations and Support Wings to address the challenges posed by cyberspace. The new units will provide specialized capabilities for offensive and defensive cyber operations, as well as support for other military operations in cyberspace.

The Command Cyber Operations and Support Wings are part of the U.S. Air Force and are based at Joint Base San Antonio-Lackland in Texas. The units will be responsible for conducting cyber operations, providing cyber intelligence, and developing and maintaining cyber defense capabilities.

The establishment of these units reflects the growing importance of cyberspace in modern warfare and the need for specialized expertise and capabilities to address the evolving cyber threats. The U.S. military has identified cyberspace as a critical domain of warfare, alongside land, sea, air, and space.

The Command Cyber Operations and Support Wings are expected to be fully operational in the near future and will play a critical role in addressing the challenges posed by cyberspace in the years to come.

India – Latin America Relations

India and Latin American countries have been working towards strengthening their economic and diplomatic ties in recent years. India has been keen to expand its engagement with the region, which has a combined population of over 600 million and offers significant potential for trade and investment.

India has been actively engaging with countries in the region through various channels, including high-level visits, trade missions, and cultural exchanges. The country has also established diplomatic missions in several Latin American countries, including Brazil, Mexico, and Argentina.

In recent years, India has been focusing on deepening its economic ties with the region. The country has signed several bilateral trade agreements with Latin American countries and has been working to increase its exports to the region. India's main exports to the region include pharmaceuticals, textiles, and engineering goods, while the country imports primarily crude oil and minerals.

Overall, India's engagement with Latin America is expected to continue to grow in the coming years, driven by a shared commitment to promoting economic growth, regional integration, and cultural exchange.

Automatic Exchange of Information (AEOI) Framework for Financial Assets

The Automatic Exchange of Information (AEOI) framework is a system used by countries to automatically exchange financial information with each other. The goal of the framework is to combat tax evasion and increase transparency in financial transactions.

Under the AEOI framework, financial institutions are required to provide information on the financial assets of their customers to their respective governments. The governments then exchange this information with other participating countries.

The framework is based on the Common Reporting Standard (CRS), which was developed by the Organization for Economic Co-operation and Development (OECD) in 2014. The CRS sets out the information that needs to be reported and the procedures that need to be followed for the AEOI framework to work.

Despite these concerns, the AEOI framework is likely to continue to grow in importance as countries seek to increase transparency and combat tax evasion in an increasingly globalized world. Click for more about Current Affairs for UPSC of 01 May/2023.