Daily Current Affairs 27th October, 2016
Justice Reddy committee on One Rank One Pension submits report
- The one-man judicial committee on One Rank One Pension submitted its report to the Defence Minister Shri Manohar Parrikar.
- The Central Government had appointed the committee under the Chairmanship of Justice L Narasimha Reddy retired Chief Justice of Patna High Court.
About One Rank One Pension Scheme
- The benefits of OROP will be given with effect from 1st of July 2014 and it will benefit ex-servicemen of all three services- Army, Navy and Air Force.
- The benefits will also be extended to family pensioners including war widows and disabled pensioners.
- All arrears will be paid in four half-yearly installments.
- However all widows, family pensioners including those in receipt of Gallantry award will be paid arrears in one installment.
- Pension will be re-fixed every five years and future enhancements in rates of pension would be automatically passed to the past pensioners.
- Armed forces personnel who retire voluntarily would be not covered under OROP scheme.
- However, it will be applicable to personnel who have already retired prematurely.
Govt notifies revised DTAA with South Korea
India and South Korea on 26 October 2016 signed a revised Double Taxation Avoidance Agreement (DTAA) for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
The Provisions of the new DTAA will have effect in India in respect of income derived in fiscal years beginning on or after 1 April 2017.
Constitutional Status of DTAA
The constitution of India has conferred the sovereign powers to levy taxes and to enforce collection and recovery thereto on the State under Article 265 by providing that no taxes shall be levied or collected except by authority of law.
The power to levy taxes is conferred on the Union of India in respect of matters falling within its domain in Union List of the Constitution. Power to levy taxes, conferred on the State Legislative fall within the scope of State List of schedule VII.
Entry (4) of Union List under schedule VII to the Constitution of India empowers the Union of India to enter into treaties and agreements with foreign countries and implement such treaties, agreements and conventions and entry (10) of Union List, dealing with foreign affairs and entry (9) of Union List of Schedule VII covers Diplomats, Councils and trade representation and, therefore, the tax treaties including those for Avoidance of Double Taxation fall within the exclusive domain of the Central Government in view of the Constitutional Authority conferred on it.
Difference between DTAA and TIEA?
- Both DTAA & TIEA are explained in article 90 of Income Tax Act.
- It says that the Central Government may enter into an agreement with the Government of any country outside India –
- a) for the granting of relief in respect of income on which have been paid both income-tax under this Act and income-tax in that country, or
- b) for the avoidance of double taxation of income under this Act and under the corresponding law in force in that country, or
- c) for exchange of information for the prevention of evasion or avoidance of income- tax chargeable under this Act or under the corresponding law in force in that country, or investigation of cases of such evasion or avoidance, or for recovery of income-tax under this Act and under the corresponding law in force in that country
- While, DTAA is entered as per provision 90(a) , the TIEA is signed in as per provision of 90 (c).
- The Tax Information Exchange Agreements (TIEAs) are signed with the jurisdictions, which are popularly known as ‘tax havens’.
Note- The G20 communiqué has made mandatory the signing of TIEAs in case any country demands this instrument with low or no tax jurisdictions/countries.
MMTC ties up with major banks to retail gold coins
- Public sector major MMTC (Metals and Minerals Trading Corporation of India) has joined hands with HDFC Bank, ICICI Bank and Andhra Bank to retail gold coins with a new buyback option.
- Besides its own outlets across the country, MMTC has tied up with Indian Overseas Bank, Vijaya Bank, Federal Bank and YES Bank to sell gold coins in denominations of 5 gm and 10 gm coin and 20 gm bar.
- MMTC has also announced a transparent buyback of gold coins made of recycled gold.
Sunil Bharti Mittal elected as GSMA Chairman
- Bharti Enterprises Founder and Chairman Sunil Mittal has been elected as GSMA (Global System Mobile Association) Chairman for a two-year period from January 2017 through December 2018.
Mittal, who is the first Indian to be elected as Chairman of global telecom industry board, will oversee the strategic direction of the organisation, which represents nearly 800 of the world’s mobile operators, as well as more than 300 companies in the broader mobile ecosystem.
- The GSMA represents the interests of mobile operators worldwide, uniting nearly 800 operators with more than 250 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and Internet companies, as well as organisations in adjacent industry sectors.
Dr. Ajay M. Gondane appointed as the next High Commissioner of India to Australia
- Ajay M. Gondane has been appointed as the next High Commissioner of India to Australia.
- Currently he is working as the Additional Secretary (Political) in the Ministry of External Affairs (MEA).
- He has previously served as High Commissioner to Papua New Guinea and as Deputy Consul General of India in New York.
- Capital -Canberra
- Largest city -Sydney
- Official languages -None
- National language -English
- Currency -Australian dollar
Ericsson appoints Borje Ekholm as new president, CEO
- Swedish telecom gear maker Ericsson has appointed Borje Ekholm as President and CEO.
Salim Gangadharan to replace Amitabha Guha as non-executive chairman in South Indian Bank
- Former Reserve Bank of India chief general manager Salim Gangadharan is appointed as the next non-executive chairman of South Indian Bank. ii. Gangadharan will replace Amitabha Guha will resign on November 1, 2016.
- He has been independent director in the bank since January 2014 and he retired from RBI as principal chief general manager.
Karnal Singh appointed as chief of Enforcement Directorate
- Senior IPS officer Karnal Singh on 25-10-2016 was appointed the chief of Enforcement Directorate(ED), the agency entrusted with probing money laundering cases.
- The appointments committee of the cabinet has approved the appointment of Singh as director, Enforcement Directorate (ED) till August 31, 2017, ie the date of his superannuation.
Legendary Kashmiri singer Raj Begum dies
- Celebrated Kashmiri singer Raj Begum passed away on 26 October 2016 in Srinagar, Jammu & Kashmir.
- Begum was one of the most recognized female singers in the Kashmir Valley.
- She was 89.
- She was awarded Padma Shri in 2002.