**✅*Gs-3 : Mobilization of resources- Taxation- LTCG- Budget 2024

?️Context : Long-term gains on assets like property and investments will now be taxed at a flat rate of 12.5%, without considering inflation adjustments. For example, if you bought a house for ₹10 lakh in 2001 and sold it for ₹75 lakh in 2021, indexation would increase the purchase price to reflect inflation, thus lowering the taxable gain. Now that indexation benefit is removed.

?️What is the impact?- The response from the industry has been mixed. O
Removing indexation means investors can't adjust their purchase price for inflation. This results in higher taxable gains when they sell their assets, leading to more tax. Higher taxes might discourage people from making long-term investments, affecting their financial planning and market activityverall sentiment suggests that removing indexation could dampen investment enthusiasm.

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**✅*Gs-3 : Economic growth/ Inclusive growth

?️Q) Examine the evolution of inclusive growth in India over the past decade, emphasizing key initiatives and their impact on socio-economic indicators

?Economic survey 2024- Chapter 1

?️This is the most important chapter in terms of mains 2024

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**✅*Gs-3 : Agriculture- Agri trade

✅GS3- Food processing/Agri cropping patterns

?This is an important news for both pre and mains. Why?- Because of our agricultural export policy

?️It says that we have to double agricultural exports from the present $30 billion to $60 billion by 2022 and reach $100 billion in the next few years thereafter, with a stable trade policy regime- Click here to read ⚡️VK IAS subject wise channels -*** Click here**⚠️Youtube : Click here and join the VK IAS channel**

Kaushik merugu - AIR 82 cracked this exam in the very first attempt- what sets him apart is his wisdom.

He picked his battles very wisely- he knew his limitations and played the game to his strengths - his minimalistic approach worked in his favour.

Watch this talk on how his journey shaped up and how VK IAS was instrumental in his journey

MERUGU KAUSHIK AIR - 82 in 1st Attempt UPSC CSE 2023- VK IAS Mentorship
https://youtu.be/73Zso_cm-eA

#Economy **✅*Section 43 B(h) of Income tax act.

?️Background : Under the Micro, Small and Medium Enterprises Development (MSMED) Act, payments to MSMEs should be made within 45 days of accepting goods or services if there is a written contract. If no such agreement exists-15 days. Section 43B (h) of the Income Tax Act reinforces this by stipulating that such payments will be allowed as a deduction for the buying company only if made within the timeframe . Otherwise, the amount due would be treated as income - thus taxable.

?️Challenge : some buyers, to avoid the stringent conditions of timely payments, might prefer to engage with suppliers not registered under UDYAM, hence not protected by the provisions of the MSMED Act= registered MSMEs at a disadvantage, potentially leading to longer payment cycles or even loss of business as buyers shift to unregistered suppliers to circumvent the regulations.

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What next for VK IAS? - crisis as an opportunity and the journey behind VK IAS.
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**✅*Gs-3 : Economic growth

⚠️GDP formula G= C+I+G+(X-M)

?️This article is talking about investment (I) component

➡️Why is Investment important?- Because it is a growth multiplier.

?️In this regards, the article is talking about households' contribution- Why households cant invest much?- Click here for a brief explainer- read the analysis ?️?Since households were unable to contribute, government went for a Corporate tax cut to attract investments- Click here to know the impact ?️But you can see tremendous growth in stock markets Consider this- Nifty - a metric for growth - went from 8000 odd to almost 22000 recently- almost 3x growth.

?️So conclusion= Inequality

?Then solution?- We disucssed this

⚜️1. Reduce subsidies- Click here ⚜️2. Read these in the same order( Series of articles by Arun Maira )

?@Economyhighlights for more economy related articles at one place

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