RBI says 5.74% increase in credit and 9.73% in deposits:
RBI says we have some good signs of recovery about bank loans in the economy during the current financial year of Bank credit has increased to 5.74 percent, at the end of June 4, 2021, Rs 108.43 lakh crore mentioned in the fortnight
Apart from the credits, Deposits are also increased by 9.73 percent which is Rs 153.13 lakh crore. According to the reports given by the Reserve Bank of India, A year ago at the end of June 5, 2020, The bank credit were been at Rs 102.55 lakh crore and deposits are at Rs 139.55 lakh crore in the fortnight.
Comparing latest reports with last financial year:
Comparing with the latest reports, by the end of May 21, 2021, Bank credits has increased to 5.98% and deposits were also increased by 9.66% in the fortnight. According to Central Bank’s Reports during the financial year 2020-21, Bank credits have been increased to 5.56% and deposits by 11.4% as well.
A loss of Rs 2 lakh crore in production due to Covid-19:
As per the estimations of the Reserve Bank of India (RBI), there could be a loss of Rs 2 lakh crore in production due to the second wave of Covid-19 throughout the country during the current financial year. The economic loss may not directly affect the country’s GDP, but it will impact the loss in value addition to the country’s economy. Already, several banks and agencies, including the RBI, have lowered their growth projections for the current financial year.
Income Tax Department Increased rates for TDS and TCS:
According to the statement by Income Tax Department on Monday, they have developed a new TDS deduction (tax deducted at source) mechanism and collecting TCS (tax collected at source) mechanism that helps to identify the individuals who have higher rates of tax since July 1.
As per the reports, in the financial year 2020-21, The rates of tax deducted at source (TDS) and tax collection at source (TCS) will be increased for those who have not filed income tax returns in the past two financial years.
CBDT new sections 206AB and 206CCA for deducting tax:
On Monday The Central Board of Direct Taxes (CBDT) has issued a circular regarding the implementation of sections 206AB and 206CCA for deducting/collecting tax at an increased rate for those who haven’t filed tax returns. The Income Tax Department said on the Twitter handle that, “CBDT issues Circular No. 11 of 2021 at 21.06.2021 on implementation of section 206AB & 206CCA wrt higher tax deduction/collection for certain non-filers. New functionality issued for compliance checks for sec 206AB & 206CCA to ease the compliance burden of tax deductors/collectors.”
Download Central Board of Direct Taxes Official Circular No 11 From Below
Circular No. 11/2021: Circular regarding use of functionality under Section 206AB and 206CCA of the Income-tax Act, 1961!New
Economic revival is depended on the pace of vaccination:
According to the reports, the official s of Reserve Bank of India said that “the path of country’s economic revival is mainly depended on the pace and scale of COVID vaccination. RBI also said that the economy has all the requirements of capacity and strength to overcome the Covid-19 pandemic with already existing structural and cyclical constraints.
In an article written by Deputy Governor MD Patra and other officials of RBI’s monthly journal of the economy it is stated that “According to the current data and reports, only domestic demands has been affected by the Covid-19 pandemic.”
Investment in logistics and research needs to be increased:
It said that the covid-19 pandemic will not be washed out totally with vaccinations ‘people have to learn to live with the virus, the country needs to increase the investments in healthcare, research, and logistics.’