November 2024

Macro Environment

learn / /
macro environment

A macro environment refers to the overall, broader economy and the forces affecting it versus a microenvironment, which focuses on a specific sector or region’s economy. There are macroeconomic conditions or factors that affect how all businesses operate, which, in turn, affect the economy as a whole. In general, macroeconomics deals with: Spending Price levels Aggregate production What Is a Macro Environment? A macro environment refers to the set of conditions that exist in the economy as a whole, rather than in a particular sector or region. In general, the macro environment includes trends in the gross domestic product (GDP), inflation, employment, spending, and monetary and fiscal policy. The macro-environment is closely linked to the general business cycle as opposed to the performance of an individual business sector. Analyzing a Macro Environment The macro-environment refers to how the macroeconomic conditions in which a company or sector operates influence its performance. Macroeconomics deals with aggregate production, spending, and the price level in an economy as opposed to individual industries and markets. The amount of the macro environment’s influence depends on how much of a company’s business is dependent on the health of the overall economy. Cyclical industries are heavily influenced by the macro environment, while basic staple industries are less influenced. Industries that are highly dependent on credit to finance purchases and business investments are strongly influenced by changes in interest rates and global financial markets. The macro-environment can also directly affect consumers’ ability and willingness to spend. Luxury goods industries and big-ticket consumer goods can be highly impacted by fluctuations in consumer spending. Consumers’ reactions to the broad macro-environment are closely monitored by businesses and economists as a gauge for an economy’s health. Factors of the Macro Environment Analyzing the macro environment is an important part of strategic management. Business analysts often conduct a PEST (political, economic, socio-cultural, and technological) analysis to identify macro-economic factors that currently affect or in the future may affect business. Some of the key factors composing the macro environment include the following: Gross Domestic Product Gross Domestic Product (GDP) is a measure of a country’s output and production of goods and services.  Releases a quarterly report on GDP growth that provides a broad overview of the output of goods and services across all sectors.An especially influential aspect of GDP is corporate profits for the economy, which is another measure of an economy’s comprehensive productivity. Inflation Inflation is a key factor watched by economists, investors, and consumers. It affects the purchasing power . The target rate for annual inflation from  2%. Inflation higher than 2% significantly diminishes the purchasing power , making each unit less valuable as inflation rises. Employment Employment levels are measured , which releases a monthly report on business payrolls and the status of the unemployment rate.regulate employment levels through monetary policy stimulus and credit measures. These policies can ease borrowing rates for businesses to help improve capital spending and business growth, resulting in employment growth. Consumer Spending Consumer spending made up 54%  is widely considered to be an important indicator of macroeconomic performance.Slow growth or decline in consumer spending suggests a decline in aggregate demand, which economists consider to be a symptom or even a cause of macroeconomic downturns and recessions.  Monetary Policy The Federal Reserve’s monetary policy initiatives are a key factor influencing the macro environment . Monetary policy measures are typically centered around interest rates and access to credit. Federal interest rate limits are one of the main levers of the Federal Reserve’s monetary policy tools. The Federal Reserve sets a federal funds rate for which federal banks borrow from each other, and this rate is used as a base rate for all credit rates in the broader market. The tightening of monetary policy indicates rates are rising, making borrowing more costly and less affordable. Fiscal Policy- Fiscal policy refers to government policy around taxation, borrowing, and spending. High tax rates can reduce individual and business incentives to work, invest, and save. The size of a government’s annual deficits and total debt can influence market expectations regarding future tax rates, inflation, and overall macroeconomic stability. Government spending drives borrowing and taxation; it is also widely used as a policy tool to try to stimulate economic activity during slow times and make up for sluggish, consumer spending and business investment during recessions. FAQs What is the macro environment? The macro environment refers to the larger, external forces that affect an organization’s operations and performance. These factors are generally beyond the control of individual businesses but have a significant impact on their strategies and decision-making. The macro environment includes elements like political, economic, social, technological, environmental, and legal factors (often summarized as the PESTEL framework). What are the key components of the macro environment? Political Factors: Government policies, political stability, tax laws, trade regulations, and political pressures. Economic Factors: Economic growth rates, inflation, unemployment, exchange rates, and overall economic conditions. Social Factors: Demographics, cultural attitudes, lifestyle changes, and population trends. Technological Factors: Innovations, technological advancements, automation, and the impact of new technologies on industries

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Income Tax Return Forms

Income Tax / /
Income Tax Return Forms

The Income Tax Return, or ITR, is a mechanism that taxpayers use to provide reports to the IRS about their earnings and tax payments. A taxpayer must register his or her ITR on or before the deadline. Before filing an ITR, any taxpayer can assess their tax liability and make payments. For instance, in the event of a failure carryforward and setoff of brought-over losses, you can file an ITR. Check form 26AS for information on TDS and other taxes, such as FD interest, while filing your ITR. You’ll just use your Form 16 to fill out the particulars of your income and tax-saving deduction statements. Importance of filing an ITR If individuals seek to obtain a refund from the Income Tax Department. If individuals intend to apply for a loan or a visa. If individuals have multiple income sources, such as capital gains or house property. If individuals have earned income from foreign assets in the financial year. For companies or firms, regardless of profit or loss. Types of ITR ITR 1 Individuals residing in India with a total income of up to Rs 50 lakh are eligible. ITR-1 may be filed by someone who earns money from a job, a home, or other outlets. An NRI is unable to file an ITR-1. ITRs may be filed using Form 16 by salaried taxpayers. ITR 2 Individuals and HUF for revenue from sources other than their enterprise or occupation. Individuals and NRIs who earn money from a job, a home, capital gains, or other sources may file Form ITR-2. ITR-2 may be filed by salaried people who have made profits or damages from stock purchases and sales. ITR 3 Individuals are required to disclose their earnings from a company or occupation. Salaried people who earn money from the intraday stock exchange or futures and options trading should file Form ITR-3. Individuals may use ITR-3 to record revenue from jobs, real estate, capital gains, company or trade (including presumptive income), and other sources. ITR 4 Individuals, HUFs, and partnership companies are subject to a presumptive taxation system on their earnings. ITR-4 is used to report revenue from a company with a turnover of up to Rs 2 crore that is subject to section 44AD taxation. In addition, ITR-4 is for revenue from an occupation with a turnover of up to Rs 50 lakh that is subject to section 44ADA taxation. ITR-4 may be filed by a freelancer who works in a notified occupation. ITR 5 LLP, AOP, and BOI are both acronyms for alliance companies. LLPs, partnership companies, AOPs, and BOIs will file ITR-5s to disclose profits from their businesses and professions, as well as some other sources of income. ITR 6 It is an income tax return form used by businesses to report revenue from industry or occupation, as well as all other forms of income. ITR 7 It is the federal tax return for businesses, partnerships, and trusts that continue to be excluded from paying income tax. Types of Forms to File ITR Form 16 An employee gets a Form 16 TDS certificate from their boss. The gross pay, as well as exemptions such as HRA and LTA, are listed on Form 16. The form also includes information on the employee’s net taxable pay, all other revenue or loss reported tax-saving deductions and salary TDS. Form 26AS The tax deducted at source (TDS) on different earnings, such as wages, debt, and the selling of immovable property, is detailed on Form 26AS. Details of self-assessment tax, advance tax paid by an individual, and listed financial transactions are also included on the form. Form 15G and Form 15H You will earn income without TDS using Form 15G and Form 15H. If you are under the age of 60 and your gross taxable income is less than the basic exemption cap, you can file a Form 15G. If you are a senior citizen and the tax owed on your net salary is zero, you will file Form 15H. To the individual who pays your taxes, you must apply Form 15G or Form 15H. FAQs Which ITR form to fill for self-employed? For self-employed individuals, one must fill in either ITR-3 or ITR-4 form How many types of ITR are there? There are 7 types of Income tax return forms in India.

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Nirman Shramikon ke Liye Vyavsayik Rin Par Byaj ki Punarbharan Yojana

Government Schemes / /
Income Tax Return Forms

The “Nirman Shramikon ke Liye Vyavsayik Rin Par Byaj ki Punarbharan Yojana” is a scheme designed to alleviate financial burdens for construction workers by assisting in the repayment of interest on commercial loans. Recognizing the challenges faced by individuals in the construction sector, especially during economic downturns, the scheme aims to ease the burden of high-interest rates, which often weigh heavily on the shoulders of laborers. By providing support with interest repayments, the government not only relieves immediate financial pressure but also fosters an environment conducive to entrepreneurship and economic stability among the construction workforce. This initiative underscores the government’s commitment to the welfare and prosperity of construction workers, recognizing their invaluable contributions to the nation’s infrastructure and development. Through this scheme, the government aims to enhance the financial resilience of construction laborers, enabling them to pursue their entrepreneurial aspirations and secure a brighter future for themselves and their families. Benefits The board will reimburse the interest payable on business loans up to ₹5,00,000/- Eligibility Applicant must be construction worker and registered with the board are regularly depositing contributions. Applicant can utilities the loan amount only for own business work. Application can not use loan amount for purchase of shop/plot/vehicle or household goods. Applicant have to submit a certificate of intention to repay interest to the financial institution every year. This scheme will be applicable only on the loan taken by one of the registered beneficiary’s wife/husband at a time. If any information provided in the application for assistance under the scheme by the beneficiary is found to be false, the responsibility of depositing the entire sanctioned assistance amount along with interest in lump sum will be of the concerned beneficiary. Documents Required Copy of the duly filled and complete application form along with self-attested certificates of beneficiary and his/her spouse. Certificate of loan sanction from Financial Institution/Bank. Proof of interest paid on loan during the year. Copy of Aadhar Card and Jan Aadhar Card of the beneficiary. Copy of the first page of the beneficiary’s saving bank account passbook (showing beneficiary’s name, bank account number and IFSC code). Self-declaration certificate by spouse of the beneficiary stating that no loan is outstanding from any other institution at present. Application Process Registration Step-1: Applicant have to visit the official portal. Step-2: Click on the option “Register”.Step-3: Then you will be redirected to the SSO registration page. The registration page will appear with the following options. Citizen Step-4: Choose the either one option from the Jan Aadhaar Or Google to process further. Jan Aadhaar : Enter the Jan Aadhaar number, click on the ‘Next’ button, Select your name, the name of the head of the family and all the other members and Click on the ‘Send OTP’ button. Enter the ‘OTP’ and Click on the ‘Verify OTP’ button to Complete the registration. Google : Enter the Gmail ID, click on the ‘Next’ button, Enter the password. A new link appear on screen, now click on the new SSO link. SSO id will appear on the screen, now create the password. Enter Mobile number, click on registration. Step-5: Submit. Apply Step-1: Applicant have to visit the official portal. Step-2: After login, dashboard will open.Step-3: Click on “LDMS” option.Step-4: In LDMS, select “Welfare Schemes” from the side menu and select BOCW Welfare Board. Step-5: Now click on “Apply for Scheme” on screen. Step-6: In this new page, will get a list of names of all the schemes of Rajasthan Shramik Card, out of which click on the name of “Yojana”Step-7: Fill out the all relevant detail. Step-8: Submit. FAQs Can beneficiary buy a shop with the loan amount? Beneficiary can not use loan amount for purchase of shop/plot/vehicle or household goods. How many times benefits will be provided ? This scheme will be applicable only on the loan taken by one of the registered beneficiary’s wife/husband at a time

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Section 40 – Finance Acts

Finance Acts / /

Amendment of section 132B In section 132B of the Income-tax Act, in sub-section (1), in clause (i), for the words and figures “and the Interest-tax Act, 1974”, the words, brackets and figures “the Interest-tax Act, 1974 (45 of 1974) and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015)” shall be substituted with effect from the 1st day of October, 2024.

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Section 39 – Finance Acts

Finance Acts / /

Amendment of section 115QA In section 115QA of the Income-tax Act, in sub-section (1), after the proviso and before the Explanation, the following proviso shall be inserted with effect from the 1st day of October, 2024, namely:— “Provided further that the provisions of this sub-section shall not apply in respect of any buy-back of shares, that takes place on or after the 1st day of October, 2024.”.

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Section 38 – Finance Acts

Finance Acts / /

Amendment of section 115E In section 115E of the Income-tax Act, in the long line, for clause (ii), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 23rd day of July, 2024, namely:— “(ii) the amount of income-tax calculated on the income by way of long-term capital gains referred to in clause (b), if any, included in the total income,— (A)   at the rate of ten per cent for any transfer which takes place before the 23rd day of July, 2024; and (B)   at the rate of twelve and one-half per cent for any transfer which takes place on or after the 23rd day of July, 2024; and”

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Section 37 – Finance Acts

Finance Acts / /

Amendment of section 115BAC  In section 115BAC of the Income-tax Act, for sub-section (1A), the following sub-section shall be substituted with effect from the 1st day of April, 2025, namely:— “(1A) Notwithstanding anything contained in this Act but subject to the provisions of this Chapter, the income-tax payable in respect of the total income of a person, being an individual or Hindu undivided family or association of persons (other than a co-operative society), or body of individuals, whether incorporated or not, or an artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2, other than a person who has exercised an option under sub-section (6),— (i)   for any previous year relevant to the assessment year beginning on the 1st day of April, 2024, shall be computed at the rate of tax given in the following Table, namely:— TABLE Sl. No. Total income Rate of tax (1) (2) (3) 1. Upto Rs. 3,00,000 Nil 2. From Rs. 3,00,001 to Rs. 6,00,000 5 per cent 3. From Rs. 6,00,001 to Rs. 9,00,000 10 per cent 4. From Rs. 9,00,001 to Rs. 12,00,000 15 per cent 5. From Rs. 12,00,001 to Rs. 15,00,000 20 per cent 6. Above Rs. 15,00,000 30 per cent; (ii)   for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2025, shall be computed at the rate of tax given in the following Table, namely:— TABLE Sl. No. Total income Rate of tax (1) (2) (3) 1. Upto Rs. 3,00,000 Nil 2. From Rs. 3,00,001 to Rs. 7,00,000 5 per cent 3. From Rs. 7,00,001 to Rs. 10,00,000 10 per cent 4. From Rs. 10,00,001 to Rs. 12,00,000 15 per cent 5. From Rs. 12,00,001 to Rs. 15,00,000 20 per cent 6. Above Rs. 15,00,000 30 per cent”.

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Section 36 – Finance Acts

Finance Acts / /

Amendment of section 115AD In section 115AD of the Income-tax Act, in sub-section (1), with effect from the 23rd day of July, 2024,— (a)   in the longline, in clause (ii), for the proviso, the following proviso shall be substituted and shall be deemed to have been substituted, namely:—     “Provided that the amount of income-tax calculated on the income by way of short-term capital gains referred to in section 111A shall be at the rate of— (A)   fifteen per cent for any transfer which takes place before the 23rd day of July, 2024; and (B)   twenty per cent for any transfer which takes place on or after the 23rd day of July, 2024;”; (b)   in clause (iii), for the proviso, the following provisos shall be substituted and shall be deemed to have been substituted, namely:—     “Provided that in case of income arising from the transfer of a long-term capital asset referred to in section 112A which exceeds one lakh and twenty-five thousand rupees, income-tax shall be calculated at the rate of— (A)   ten per cent where transfer of such asset takes place before the 23rd day of July, 2024; and (B)   twelve and one-half per cent where transfer of such asset takes place on or after the 23rd day of July, 2024:     Provided further that the limit of one lakh twenty-five thousand rupees mentioned in the first proviso shall apply on aggregate of the long-term capital gains referred to in clauses (A) and (B); and”.

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Section 35 – Finance Acts

Finance Acts / /

Amendment of section 115ACA In section 115ACA of the Income-tax Act, in sub-section (1), in the longline, for clause (ii), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 23rd day of July, 2024, namely:— “(ii) the amount of income-tax calculated on the income by way of long-term capital gains referred to in clause (b), if any, included in the total income,— (A)   at the rate of ten per cent for any transfer which takes place before the 23rd day of July, 2024; and (B)   at the rate of twelve and one-half per cent for any transfer which takes place on or after the 23rd day of July, 2024; and”.

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Section 34 – Finance Acts

Finance Acts / /

Amendment of section 115AC In section 115AC of the Income-tax Act, in sub-section (1), in the long line, for clause (ii), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 23rd day of July, 2024, namely:— “(ii) the amount of income-tax calculated on the income by way of long-term capital gains referred to in clause (c), if any, included in the total income,— (A)   at the rate of ten per cent for any transfer which takes place before the 23rd day of July, 2024; and (B)   at the rate of twelve and one-half per cent for any transfer which takes place on or after the 23rd day of July, 2024; and”.

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