Budget may offer tax breaks to home buyers
In the budget to be presented on February 1, finance minister Nirmala Sitharaman is likely to propose higher tax deductions on home loans to boost housing demand. The government may increase the annual tax deduction limit for repayment of home loan principal under Section 80C of the Income Tax Act to Rs 2 lakh from the current cap of Rs 1.5 lakh.
Why it’s important: The tax breaks would make home purchases more affordable. The incentives would be a boost for the real estate sector that is recovering from the pandemic-induced low demand and halt in construction activities several times over the past two years.
Taxpayers may get more incentives to shift to new income-tax regime
The budget may provide additional incentives to individual taxpayers willing to shift to the optional income-tax regime of lower rates without exemptions announced in 2020. Finance minister Nirmala Sitharaman on 1 February 2020 announced an option to individual taxpayers that reduced income-tax rates for those willing to forgo deductions and exemptions.
Why it’s important: While a similar tax regime for corporate taxpayers received a good response, it hasn’t been the case with individual taxpayers. The exemption-free regime with lower tax rates did not work for all individuals because of various reasons, but that may change with the additional sops.
Indian firms get better at tackling pandemic wave
Unlike in the first two waves of Covid-19 outbreak, Indian companies have taken the current rise in infections in its stride, ensuring relatively less disruption to business, although restaurants, hotels, and multiplexes faced hurdles on account of restrictions on indoor gatherings and weekend lockdowns.
Why it’s important: Successive waves of the coronavirus pandemic have been disrupting business activity. However, battle-scarred manufacturers are now better managing supply-chain issues and dealing with a curtailed workforce. The comparatively fewer curbs on goods and people movement have helped.
Inflation fears back as crude oil rises above $ 87
Prices of crude petroleum have risen above $ 87 per barrel on fears of supply disruptions in a tighter market. If crude oil prices sustain at current levels for more than a month, it will further increase retail prices and higher freight rates.
Why it’s important: Since India imports most of its oil, higher crude prices invariably translate into higher fuel prices that stoke inflation and crimp growth. High inflation could put the brakes on an incipient economic recovery.
Buy now, pay later sector under RBI scanner
The buy now, pay later model in India may soon see a big change. The Reserve Bank of India has sought details of such arrangements by shadow banks with e-commerce platforms. The central bank has also asked for information on their roles as transferor or transferee for loans under its Master Direction on Transfer of Loan Exposures.
Why it’s important: Industry executives are certain that this development means that the Reserve Bank will take steps to size up the market and introduce tighter regulations. This could lead to greater transparency in retail consumer finance.
Reliance buys 54 percent stake in robotics firm Addverb
Reliance Industries has purchased a majority stake in robotics startup Addverb Technologies for $ 132 million (approximately Rs 9.84 billion). With this investment, Reliance will become a strategic partner in Addverb with around 54 percent stake. The Noida-based start-up had earlier raised around $ 11 million, taking its total funding since inception to $ 143 million.
Why it’s important: Addverb will help in automating various businesses of Reliance. It has already developed automated warehouses for Reliance, Flipkart, Hindustan Unilever, Asian Paints, Coca-Cola, Pepsi, ITC, and Marico.
India to try seizing assets of Devas promoters and officials
India could use a provision under the companies’ law to take over the assets of key executives and promoters of Devas Multimedia, encouraged by the Supreme Court’s judgement allowing liquidation of the company. The liquidator appointed by the National Company Law Tribunal will take stock of the assets of the company in India and overseas.
Why it’s important: Finance minister Nirmala Sitharaman has said the government is fighting in every court to ensure the fraud doesn’t go unpunished. She blamed the former Congress-led regime for having perpetrated it.
Microsoft purchases Candy Crush maker for $ 68.7 billion
Microsoft Corporation has agreed to buy Activision Blizzard in an all-cash deal valued at $ 68.7 billion. The transaction would make Microsoft the world’s third-largest gaming company by revenue, behind China’s Tencent Holdings and Japan’s Sony Group.
Why it’s important: The deal will expand Microsoft’s sizeable videogame operations, adding a plethora of popular game franchises that include Call of Duty, World of Warcraft and Candy Crush to Microsoft’s Xbox console business and games like Minecraft and Doom.
Max Healthcare to double capacity by investing Rs 33.54 billion
Max Healthcare Institute, India’s second-largest hospital chain operator, plans to invest $ 450 million (approximately Rs 33.54 billion) in the next four years. This will double its capacity, chairman and managing director Abhay Soi said. The investment will help boost capacity at existing hospitals as well as further enhance landholdings.
Why it’s important: Max Healthcare is gearing up to add capacity after India’s health care ecosystem was overwhelmed by the Covid-19 pandemic last year. The planned investment will start a huge asset creation cycle.
HCL to aggressively hire freshers, expand operations
HCL Technologies plans to double its recruitment of fresh engineering graduates in financial year 2022-23. It will hire 40,000-45,000 freshers, up from 20,000-22,000 in the current fiscal year to March. The IT major will also expand to different location in the next few quarters to ease supply constraints.
Why it’s important: HCL has reported one of its best quarterly results. It would like to keep up the momentum by more hiring and diversifying the locations where it offers its services.
