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Income Tax Exemption Limit May be Doubled, Theresa May Likely to Face Defeat, Huawei Founder Denies US Accusation et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Jan 15, 2019 2:45 PM 4 min read
Editorial

Income Tax limit may be doubled. Theresa May likely to face defeat in Brexit deal vote today. OYO to become world's 'largest' hotel chain.

 

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

Income Tax Exemption Limit May be Doubled, Theresa May Likely to Face Defeat, Huawei Founder Denies US Accusation et al.

BREXIT

Theresa May likely to face defeat in Brexit deal vote today.
 

Brexit Deal: As per a report by The Guardian, more than 200 MPs are likely to vote against Theresa May’s Brexit Deal in spite of her urging them to “take a second look” at the deal and stressing that it was the only option that could deliver an “orderly” exit from the EU, a day before the voting. 
 

What Follows?: A defeat is likely to be followed by Jeremy Corbyn calling a vote of no confidence in the government.
 

Read a rolling coverage of the final day of the debate on Theresa May’s Brexit deal here.

Check this cool decision chart around the Brexit Stalemate.

 

CHINA

Huawei founder denies US accusations on involvement with Beijing spies. China signals more stimulus to recover from economic slowdown. Donald Trump to stay put on his trade policies with China.
 

Bridge of Spies: As per a Bloomberg report, Ren Zhengfei, Chinese telecom giant Huawei’s Founder denied US accusations around the telecom giant's involvement with the Chinese government in providing sensitive information from countries such as US.
 

Also, this: According to NPR, the Chinese court sentenced a Canadian man who appealed his 15-year prison sentence for drug smuggling to death.
 

Some background: As per the same report, the sentencing was rather quick and could be considered a hit back from the Chinese government after Canada last month arrested Huawei’s CFO Meng Wanzhou in Vancouver.

China Plans Stimulus: As per a report by Reuters, China could deliver 2 trillion yuan ($296.21bn) worth of cuts in taxes and fees, and allow local governments to issue another 2 trillion yuan in special bonds to largely fund key projects in an attempt to recover from the economic slump caused by the ongoing trade war with China.
 
Trump Stays Put: As per US president Donald Trump defended his tough trade policies with China during his visit to the American Farm Bureau Federation’s annual convention.
 

What You Need to Know: Beijing imposed tariffs on imports of US farm goods including pork, soybeans, grain sorghum in retaliation to Trump’s tariffs on Chinese goods. Moreover, the partial government shutdown caused due to Trump’s insistence on funds for the Border wall has led to the closure of US Department of Agriculture offices and delayed farmers’ applications for federal loans and an aid package meant to ease the pain caused by the trade war.

 

DATA

OYO to share real time details of its customers with state and law authorities; aims to become the world's 'largest' hotel chain.
 

Transparency vs Privacy?: As per a Business Standard report, hospitality company OYO is putting in place a digital record system to enable direct sharing of its customer’s data with various state governments and law enforcement authorities.
 

The Why: This will facilitate the states to monitor movements of visitors and also reduce the possibility of someone manipulating the hotel register, where entries are often made manually.

Caveat and Progress: The move requires the state governments to also have a digital register. OYO has already put in place this digital register in Jaipur in Rajasthan and pilot projects are being run in Haryana and Telangana.

OYO’s Big Plans: As per a Firstpost report, OYO is working on a roadmap to scale up its current room inventory of 4.6L to 2.5 million rooms by 2023.

Current Picture: At present, OYO has over 13,000 franchised and leased hotels, and over 450,000 rooms, adding over 64,000 rooms every month, globally.

Income Tax Exemption Limit May be Doubled, Theresa May Likely to Face Defeat, Huawei Founder Denies US Accusation et al.

AVIATION

Jet lenders may buy stake in the debt-laden airlines.
 

The What: Lenders to Jet Airways are preparing to buy a substantial stake and restructure the debt of the beleaguered airline following a clean forensic audit.
 

Perspective: The news comes a day after existing shareholder Etihad Airways reportedly agreed to raise its stake in the national airline to 49%. However, as per Moneycontrol, Etihad Airways may be having some trouble of its own having gone two years without profits and with many of its investments having turned sour.

 

INCOMETAX

Income Tax exemption limit may be doubled in the interim budget.
 

Income Tax: As per a Livemint report, the government may double the income tax exemption threshold from the present INR2.5L to INR5L in its interim budget on 1 February.
 

Zoom Out: According to the current tax slab, income below INR2.5L is tax exempt. Income between INR2.5-5L attracts 5% income tax. Income in between INR5-10L is taxed at 20%, and anything above INR10L is taxed at 30%.
 

Read this opinion piece by the Financial Express which discusses why there should be further easing of both tax rates as well as exemption limits.

 

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