Finance Secretary TV Somanathan Talks About Stock Market Changes and New Internship Scheme
Stock Market Tax Changes
Finance Secretary TV Somanathan explained that the recent fall in the stock market is not a concern for the government. He mentioned that the increase in long-term capital gains (LTCG) tax from 10% to 12.5% is a minor change and should not worry investors. He also noted that India’s stock market taxes are among the lowest in the world.
Domestic investors are unhappy with the new tax rates, which also include an increase in short-term capital gains tax from 15% to 20% and a rise in the Securities Transaction Tax (STT) on futures and options trades. Somanathan clarified that the new tax system aims to simplify the overall tax structure, making it easier for taxpayers in the long run.
New Internship Scheme
Finance Minister Nirmala Sitharaman announced a new internship scheme in the Union Budget 2024-25. This scheme will offer internship opportunities to 10 million youth in the top 500 companies in India over the next five years. Interns will receive a monthly stipend of Rs 5,000 and a one-time assistance of Rs 6,000. Companies will cover training costs and 10% of the internship costs from their Corporate Social Responsibility (CSR) funds.
Somanathan explained that this initiative aims to use CSR funds more effectively by focusing on skill development. The government will provide a list of eligible interns, and companies will select from this list. While companies may offer jobs to these interns, it is not mandatory.
Doubts Revealed
Finance Secretary -: The Finance Secretary is a top government official in India who helps manage the country’s money and financial policies.
TV Somanathan -: TV Somanathan is the name of the current Finance Secretary of India. He helps make important decisions about the country’s finances.
Stock Market -: The stock market is a place where people buy and sell shares of companies. It’s like a big marketplace for company ownership.
Long-term capital gains tax -: This is a tax you pay when you make money from selling something you owned for a long time, like stocks or property. The government takes a small part of your profit.
Internship scheme -: An internship scheme is a program where young people can work at companies to learn new skills and gain experience. It’s like a short-term job for learning.
Finance Minister Nirmala Sitharaman -: Nirmala Sitharaman is the person in charge of India’s finances. She makes important decisions about how the country spends and saves money.
CSR funds -: CSR stands for Corporate Social Responsibility. These are funds that companies use to do good things for society, like helping with education or the environment.
Stipend -: A stipend is a small amount of money given to someone to help cover their expenses while they are learning or working, like during an internship.