SC Upholds IBC, Senior Citizens Seek Further Tax Relief from the Interim Budget, US Government Shutdown Continues et al.

SC upholds constitutional validity of the Insolvency and Bankruptcy Code in its entirety. Senate rejects Democratic and Republican plans to end the partial US government shutdown. Senior citizens seek further tax relief from the Interim Budget.

 

Now to Today's Top Business News Stories in Our End Of Day Wrap Up:

 

INSOLVENCY

SC upholds constitutional validity of the Insolvency and Bankruptcy Code in its entirety. 
 

The What: The Supreme Court on Friday upheld the constitutional validity of the IBC in its entirety, dismissing petitions by operational creditors.

The Bigger Picture: Companies like Swiss Ribbons, Shivam Water Treaters, and other individual petitioners had challenged various provisions of the IBC stating that discriminatory treatment was given to a certain class of operational creditors and alleged that the Code was unfair, protecting the rights of financial creditors only.
 

View the breaking news clip here.
 

What You Need to Know: IBC was passed in 2016 and aimed to consolidate all bankruptcy-related laws and create a time-bound NPA resolution framework. The IBC allows financial or operational creditors initiate proceedings against defaulting corporate borrowers at the NCLT.

 

US

Senate rejects Democratic and Republican plans to end the partial US government shutdown.
 

Republican Plan: The Senate on Thursday first rejected the Republican planwhich would give $5.7bn to Trump for building the border wall. The 50-47 vote for the plan fell 10 shy of the 60 votes needed to succeed.

Democratic Plan: Soon after, the Senate voted 52-44 for a Democratic alternative that sought to open padlocked agencies through Feb. 8 with no wall money. This plan fell short of eight votes. This would have given bargainers time to seek an accord while getting paychecks to government workers who are either working without pay or being forced to stay home.

After a failed attempt to re-open the government which is experiencing the longest shutdown in its history, negotiations between White House and Capital Hill continue.

 

MONEY

Senior citizens seek further tax relief from the Interim Budget.
 

Greater Relief: Hit by some major economic reforms undertaken by the incumbent govt such as demonetization and GST, senior citizens seek greater tax relief from the Interim Budget. Some of these include:

 

  • Lowering the age limit of super senior citizens from 80 to 70 or 75 years 
  • Merger of the senior citizen and super senior citizen classifications and increase in tax exemption limit to INR4L, applicable to individuals aged 60 years or above
  • Exemption from health and education cess
  • Deduction under Section 80D, for insurance medical expenses, to be further enhanced to INR1L

 

Tax 101: If you find doing your taxes tricky, begin by knowing the difference between tax exemption, tax deduction and tax rebate here.
 

Bonus: Keep these steps in mind while investing in equities.

VENEZUELA

India may stand to gain much from the widening rift between Donald Trump and Venezuelan President Nicolás Maduro.

Trump Finds One Dictator He Doesn't Like: US President Donald Trump has time and again voiced his dissent for his Venezuelan counterpart Nicolás Maduro, so much so that he declared that the US would no longer recognize the Maduro government and proclaimed opposition leader Juan Guaidó as the rightful “interim president” of Venezuela. Trump has also suggested that he would be willing to use the American military in a standoff with Maduro. 

India Stands to Gain: Against this backdrop, if the US decides to deploy sanctions against Venezuela’s petroleum sector, it would mean more supply for Venezuela’s other big customers, including India.

Venezuela was the fourth-biggest crude supplier to India after Iraq, Saudi Arabia and Iran in 2018. India received c. 330,000 barrels a day – c. 8% of the total imports from Venezuela last year.

 

SCIENCE

China clones monkey babies from a single donor with genes edited to cause diseases; sparks outrage amongst animal activists.
 

The Experiment: Researchers at the Chinese Academy of Sciences Institute of Neuroscience have cloned five monkey babies from a single donor with genes edited to cause diseases including sleep disorders, diabetic mellitus, cancer, and neurodegenerative diseases.
 
Zoom Out: The scientists claim that these primates share approximately 95% of human genes and a number of physiological and anatomical similarities and could be used to study the disease pathogenesis as well as therapeutic treatments.


Backlash: Animal activists have slammed the experiment stating that genetically manipulating and then cloning animals is a monstrous practice that causes animals to suffer. 

 

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