CNA 08 Apr 2022:-Download PDF Here
TABLE OF CONTENTS
A. GS 1 Related B. GS 2 Related INTERNATIONAL RELATIONS 1. Russia suspended from rights council SOCIAL JUSTICE 1. The manacles of caste in sanitation work C. GS 3 Related ECONOMY 1. The fineprint on the new tax on Employees’ Provident Fund income SECURITY 1. Chinese hacker groups continue to target power plants, says govt D. GS 4 Related E. Editorials INTERNATIONAL RELATIONS 1. Ukraine and the anatomy of India’s neutrality 2. Beyond Border-Gavaskar 3. Is India’s position on Russia affecting its relationship with the U.S.? F. Prelims Facts G. Tidbits 1. Process initiated to amend criminal laws 2. Criminal Procedure Bill will create foolproof system 3. GatiShakti, PLI will offset global headwinds, spur growth H. UPSC Prelims Practice Questions I. UPSC Mains Practice Questions
A. GS 1 Related
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B. GS 2 Related
Category: INTERNATIONAL RELATIONS
1. Russia suspended from rights council
Syllabus: Important International institutions, agencies and fora – their structure, mandate.
Mains: Details about Russia’s suspension from Human Rights Council and India’s stand.
Context
Russia’s membership in the Human Rights Council (HRC) was suspended.
Read more about UN Human Rights Council (HRC) in the link.
Details
- Russia was elected as a member of the Human Rights Council (HRC) in 2020.
- In the wake of the invasion of Ukraine a resolution for the “Suspension of the rights of membership of the Russian Federation in the Human Rights Council” was proposed by Ukraine along with the U.S., E.U. and many others.
- The resolution required a two-thirds majority of those present and voting for adoption.
- The abstentions do not count in the tally of those ‘present and voting’.
- The United Nations General Assembly (UNGA) voted in favour of the resolution suspending Moscow from the UNHRC.
- India abstained from voting at UNGA.
India’s Stand
- India abstained for reasons of “substance and process”.
- India believes that decisions should be taken by respecting due process as all democratic polity and structures respect the same and this also applies to international organisations.
- India’s emphasis on the due course is significant as there was unease apparently among a large section of the member-states to expel Russia without waiting for the outcome of a probe into the violations.
- It is said that if India has chosen any side, it is the side of peace and it is for an immediate end to violence.
- Experts feel that the vote at the UNGA was difficult for India as it subverts and short circuits the whole Human Rights Council-led process.
1. The manacles of caste in sanitation work
Syllabus: Welfare schemes for vulnerable sections of the population by the Centre and the performance of these schemes
Mains: Analysis of the performance of various laws aimed at improving the lives of sanitation workers.
Context
This article discusses various challenges associated with the lives of sanitation workers.
This article has been previously covered in the UPSC Exam Comprehensive News Analysis – dated 22 Oct, 2020
C. GS 3 Related
1. The fineprint on the new tax on Employees’ Provident Fund income
Syllabus: Indian Economy and issues relating to growth, development and employment.
Mains: Details about the new tax provisions on the Employees’ Provident Fund incomes.
Context
New taxation provisions on the income earned from the provident fund contributions introduced in the Union Budget of 2021-22.
Employees’ Provident Fund (EPF)
- EPF account is mandatory for any formal sector workers earning up to ₹15,000 per month in organisations with more than 20 employees.
- EPF was created as a measure to ensure income post-retirement.
- A sum which is equivalent to 12% of workers’ basic pay and dearness allowance is deducted as employees’ contribution to their accounts, with the same amount being remitted to the account by the employer.
- The members are also permitted to voluntarily deploy more amounts into the EPF account.
New tax provisions introduced
- In the Union Budget of 2021-22, the government brought in new provisions to tax income on provident fund contributions from employees beyond ₹2.5 lakh a year.
- The government said that the ₹2.5 lakh cap on contributions will cover around 93% of EPF members.
- The new tax provisions also extend to government employees, but the contribution limit for them and other PF accounts where employers do not contribute is ₹5 lakh per year.
- The Central Board of Direct Taxes (CBDT) announced the conditions and the methods of calculating the taxable income on PF contributions that exceed limits.
- The conditions mandate all PF accounts to be split into two separate accounts.
- One with the taxable contribution and interest earned on that component.
- Another with non-taxable contributions that will include the closing balance of the PF account as of March 31, 2021, and all fresh non-taxable contributions and interest after the aforementioned date.
Reasons for the new tax provisions
- This was introduced keeping in mind that the tax-free and assured income of EPF was being misused by rich and high net-worth individuals.
- Members contributed huge amounts to their EPF accounts and in turn, were earning lakhs as annual income.
- A few individuals were making contributions worth crores to these funds and were getting the benefit of tax exemption at all stages namely contribution, interest accumulation and withdrawal.
- This misuse of EPF provisions was a major cause of concern as this eroded the basic objective of the social security scheme.
How will this new tax provision be implemented?
- The Employees’ Provident Fund Organisation (EPFO) is mandated to administer the private sector employees’ retirement savings and regulate the operations of companies that manage their PF trusts in-house.
- The Employees’ Provident Fund Organisation (EPFO) recently released a circular explaining the operational details of the tax.
- The circular provides guidelines on how withholding taxes would be computed and deducted in various situations such as withdrawal of funds from the PF account during the year.
- The circular also provides rules for the deduction of tax at source by the EPFO or company-run PF trusts.
The rate of tax deductions
- As per the CBDT, the EPFO will maintain a taxable account for members who contribute over ₹2.5 lakh a year.
- Tax on such contributions will be levied at 20% for members whose accounts have not been linked to their Permanent Account Number (PAN).
- The tax rate will be 10% for members who have linked their tax and EPF accounts to their PAN.
- The tax rate will be 30% for non-resident members with EPF accounts in India, unless their countries of origin have a Double Taxation Avoidance Agreement (DTAA) with India.
- Experts suggest that the rate will be more after the inclusion of education cess and other surcharges.
How will this be considered for Income Tax returns?
- If the income tax slab rate is higher than the rate at which the Tax Deduction at Source (TDS) was deducted, then the individuals will have to pay the remaining amount during the filing of IT returns.
- Section 194A of the IT Act mentions the TDS deductions at 10% on eligible PF interest, only if the interest payable in the entire year is ₹5,000 or higher.
- Hence no TDS would be deducted if the PF interest paid to the resident does not exceed ₹5,000.
- If the tax liability on PF members’ income is less than or equal to ₹5,000, then the tax should be calculated by the employee during the filing of IT returns.
- This covers a majority of members who voluntarily contribute more than mandated savings.
- These provisions do not apply to non-residents and TDS for them would be deducted on the entire PF income chargeable to tax.
1. Chinese hacker groups continue to target power plants, says govt
Syllabus: Basics of cyber security.
Mains: Impact of cyber security breaches on Indian security and its associated challenges.
Context
Reports of Chinese hackers targeting Indian power plants.
Background
- A U.S.-based cyber security company has reported that Chinese state-sponsored firms have targeted seven power grid assets, the national emergency response system and an Indian subsidiary of a multinational logistics company since September 2021.
- The Union government confirmed the reports that Chinese hackers continue to target Indian power plants, particularly the ones near the Line of Actual Control (LAC).
Details
- Recently, network intrusions targeting about seven Indian State Load Despatch Centres (SLDCs) responsible for carrying out real-time operations for grid control and electricity dispatch within the respective States were detected.
- It is seen that the targeting was geographically concentrated, with the identified SLDCs located close to the India-China border in Ladakh.
- Since September 2021, Indian firms have observed that the Threat Activity Group-38 (TAG- 38) has targeted Indian organisations.
- The TAG- 38 group has reportedly used the vulnerabilities of the compromised infrastructure for command and control of ShadowPad implants by using an open-source tool called Fast Reverse Proxy (FRP).
- The TAG-38 group reportedly compromised the Internet-facing DVR/IP camera devices for command and control (C2) of Shadowpad malware and FRP.
Know more about – Cyber Security
D. GS 4 Related
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E. Editorials
Category: INTERNATIONAL RELATIONS
1. Ukraine and the anatomy of India’s neutrality
Syllabus: Effect of Policies and Politics of Developed and Developing Countries on India’s interests, Indian Diaspora.
Mains: India’s neutral stand on the Russia-Ukraine conflict – Reasons
India’s Neutral Stance in Russia-Ukraine Conflict:
- India has expressed concerns over the conflict between Russia and Ukraine and has condemned the loss of human lives in the war. Notably, however, it has not directly condemned Russia. India has also abstained from crucial votes against Russia in the United Nations.
- India has been supplying humanitarian aid to Ukraine in the form of medicines, medical equipment and other relief material
- India’s response to the ongoing Russia-Ukraine conflict can be termed as neutral. India has not taken either of the sides but has called on both sides to find an amicable solution to the crisis through discussions and deliberations.
- India has traditionally adopted such a neutral stance on conflicts, especially those involving its partners. This has been observed during the Soviet interventions in Hungary (1956), Czechoslovakia (1968) or Afghanistan (1979), or the American invasion of Iraq (2003).
India’s reasoning for the neutral stance:
Balancing ties amid the global disorder:
- The global order is witnessing rapid changes. India sees three great powers emerging amid this turbulence – the U.S., China and Russia.
- India considers U.S. and Russia as its partners while it sees China as its competitor.
- India taking one of the sides in the ongoing Russia-Ukraine conflict could eventually leave China stronger by pushing Russia closer towards China. Hence in such a scenario, neutrality is the best among the bad options for India.
- A neutral stand helps India keep channels open with both sides and this would serve India’s short as well as long term interests.
Dependency on Russia:
- India remains dependent on Russia for defence equipment and energy supplies.
Economic recovery:
- India is a developing country with huge economic needs. Also, the pandemic has disrupted the Indian economy and India is still on the verge of coming out of the COVID-19-related economic shock.
- The spiralling oil prices and food prices pose major risks to the economic recovery of India. Continued trade relations with Russia would help ease some of these pressures.
Geopolitical significance of Russia for India:
- India is as much a continental power as it is a maritime power.
- While close ties with the U.S., Japan and Australia are important for India’s maritime security and interests, ties with Russia, Iran and the Central Asian countries are important for its continental security and interests. A weak and isolated Russia is not in India’s interests.
Staying away from the West-East conflict:
- The eastward expansion of NATO seems to be one of the major factors behind the current conflict. The U.S. sanctions against Russia also seem to be aimed at weakening Russia, which it considers its biggest rival in Europe.
- In this context, the ongoing conflict could be termed a west v/s east conflict and in such a scenario, India would be best advised to stay away from such a conflict.
Strategic autonomy:
- The neutral stand is based on pragmatic realism and India’s core national interests. Taking such a stance would also help uphold India’s strategic autonomy without having to toe the line of the great powers.
West’s double standards:
- Notably, other countries like South Africa and the United Arab Emirates too have abstained from the UN votes that sought to condemn Russia. U.S. ally in West Asia- Israel has refused to join the sanctions regime against Russia. Turkey, a North Atlantic Treaty Organization (NATO) ally has not taken a strong position against Russia and is in fact mediating between Ukraine and Russia.
- Despite this, India in particular has come under immense pressure and public criticism from the West for its neutral stance on the Russia-Ukraine issue.
- Also while India’s continued crude oil trade with Russia has been criticized, the U.S. has carved out waivers for Europe on energy purchases. Also, there are no sanctions against uranium imported by the U.S. This, the article terms, is selective targeting of India.
Reasons for selective targeting of India:
Political:
- From a political point of view, the West has tried to characterize the Russian attack on Ukraine as an attack on the democratic system. Since such a narrative would look weak if the world’s largest democracy (India) does not share the same perspective, the west led by the U.S. has been pushing on India to condemn Russia.
Economic:
- If India continued to trade with Russia, this would blunt the effect of the sanctions on the Russian economy. Hence the U.S. has been criticizing India’s continued trade relations with Russia.
Strategic:
- India has improved its strategic partnership with the U.S., and the West in general, over the last 30 years.
- Given the transformation of India’s partnership with the U.S., the U.S. led west expects India to give up its strategic autonomy and take a stand that aligns with that of the West.
Syllabus: Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests.
This article examines the significance of the recently signed India-Australia Economic Cooperation and Trade Agreement (ECTA). This topic has been covered previously in the following article.
UPSC Exam Comprehensive News Analysis of 7th April 2022
3. Is India’s position on Russia affecting its relationship with the U.S.?
Syllabus: Effect of Policies and Politics of Developed and Developing Countries on India’s interests, Indian Diaspora.
Mains: Impact of the Russia-Ukraine conflict on the India-U.S. partnership
Background:
- The U.S. led west has been disappointed by India’s lack of condemnation of Russia. The U.S. has criticized India’s stand on the Russia-Ukraine conflict and has warned of consequences for India for its continued trade relations with Russia despite the economic sanctions on it.
- In this context, there are questions on whether the Indian stance in the ongoing conflict will adversely impact the U.S.-India relationship.
The west’s take on Indian stance:
- While India may consider its position to be neutral, the west sees India as being supportive of Russia through its neutral stand.
- Despite this, the current U.S. administration has taken the long view of India recognizing the critical role that India could play in the U.S.’s Indo-Pacific strategy and its approach to China. According high value to the strategic partnership with India, the U.S. has adopted a wait and watch approach on India’s stand as the situation evolves in the ongoing conflict.
- The U.S. recognizes that India still relies on Russian military equipment for 60-70% of its military needs and this aspect would become all the more critical if and when the India-China border issue comes to the fore again. Hence the U.S. might as well overlook India’s defence trade with Russia.
- However, India moving ahead to take advantage of discounted Russian oil, by substantially increasing its oil imports from Russia would be difficult for the U.S. to accommodate as this would only blunt the impact of economic sanctions against Russia.
Impact on India-U.S. ties:
- There are concerns that India’s position on Russia and the sharply divergent views on the Ukraine war would have a long-term impact on the India-U.S. partnership.
- India’s failure to condemn what the west terms territorial aggression of Russia might lead to a scenario where India might not find the west’s support against China if and when it indulges in territorial aggression against India.
- India’s continued relations with Russia could impact the strategic cooperation of the Quad member nations in the future. It would adversely affect cooperation on maritime security, maritime domain awareness, and intelligence sharing within the Quad.
Recommendations:
Keeping the momentum of the relationship intact:
- There should be newer initiatives to help diversify the relationship between India and U.S. This could involve increased defence trade which would help India diversify its defence purchases while also indulging in technology transfer and joint development programmes.
- The ‘2+2’ Ministerial meeting scheduled to be held in Washington provides India and the U.S. an opportunity to discuss their differences over Russia while also reviewing the bilateral agenda for the relationship.
Quad as a partnership in non-traditional areas of security:
- Given the significance of non-traditional areas of security, the Quad should focus on non-traditional areas of cooperation, which have a security dimension, and strengthen national and regional security. This could involve areas such as economy, climate change, health, technology and maritime security.
This would also help the Quad overcome its image as the Asian NATO.
F. Prelims Facts
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G. Tidbits
1. Process initiated to amend criminal laws
- The Union Law Minister said that the process has begun to amend the Code of Criminal Procedure, the Indian Penal Code, and the Indian Evidence Act.
- The objective of the move is to create a people-centric, affordable and speedy justice system.
- The Minister also said that a committee headed by the Vice-Chancellor, National Law University, Delhi, and four other members was constituted by the Ministry of Home Affairs to suggest reforms in criminal laws.
- In its 146th report, the Parliamentary Standing Committee on Home Affairs had reported a need for a review of the criminal justice system of the country.
2. Criminal Procedure Bill will create foolproof system
- As the Criminal Procedure (Identification) Bill, 2022, was passed in the Rajya Sabha, senior Delhi police officers said that the move will create a “foolproof system” for criminal justice, which will help prosecute offenders and prevent legal loopholes during arrests.
- Police officials also feel that the data has always been at the centre of investigation and it helps them analyse crime patterns.
- The collection of iris and retina scans and the physical and biological samples in line with the international advancements in investigations will further help the police.
3. GatiShakti, PLI will offset global headwinds, spur growth
- The Finance Minister said that the geopolitical conflicts and their impact on food, fertilizer and crude oil prices have adversely affected the growth outlook globally.
- The Minister held that projects such as GatiShakti and the production-linked incentive (PLI) schemes will help nullify current global challenges and drive investment, resulting in high post-recovery growth for the Indian economy.
- With increasing evidence of improving labour force participation and reduced unemployment rate, and the government’s commitment to providing support to the economically poor, the growth prospects look to be inclusive.
H. UPSC Prelims Practice Questions
Q1. Consider the following statements with respect to legislative councils:
- The scheme of composition of the legislative councils as laid down in the Constitution is final.
- The question of disqualification under the Tenth Schedule is decided by the Speaker.
- The Chairman is elected by the members of the Assembly and Council.
Which of the statements given above is/are incorrect?
- 1 only
- 2 and 3 only
- 1, 2 and 3
- None
CHECK ANSWERS:-
Answer: c
Explanation:
- Statement 1 is not correct. The scheme of composition of a Legislative Council as laid down in the Constitution is tentative and not final.
- The Parliament is authorized to modify or replace the same.
- Statement 2 is not correct. The question of disqualification under the Tenth Schedule is decided by the Chairman.
- Statement 3 is not correct. According to Article 182 of the Indian Constitution, the Legislative Council shall have a Chairman who is elected by the Members of the Council.
Q2. Which of the following phenomenon leads to the formation of Mirage?
- Diffraction of light
- Dispersion
- Refraction
- Total Internal Reflection
Options:
- 1 and 2 only
- 3 and 4 only
- 1, 3 and 4 only
- 2, 3 and 4 only
CHECK ANSWERS:-
Answer: b
Explanation:
- Mirage is an optical phenomenon that creates an illusion of the presence of water and is a result of the refraction of light from a non-uniform medium.
- Mirage is caused due to Total Internal Reflection of light by the various layers of air.
- When the light rays from the sun travel straight through the atmosphere, these light rays travel at different speeds through the hot and cold air. For a mirage to occur the ground should be very hot and the surrounding air cold. The layer which is above the ground gets warmed. The light ray gets refracted when the light moves through the cold air and into the hot air layer.
Q3. With respect to Arkavathi River, which of the following statements is/are correct?
- The river originates in the southern part of the Devarayanadurga hill in the Tumkur district of Karnataka.
- It is a left-bank tributary of the Kaveri.
- Manchanabele dam is built across the river.
Options:
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
CHECK ANSWERS:-
Answer: b
Explanation:
- Statement 1 is not correct. The river originates in the Nandi Hills of the Chikkaballapura district of Karnataka.
- Statement 2 is correct. It is a left-bank tributary of the Kaveri.
- Statement 3 is correct. Manchanabele dam is built across the river Arkavathi.
Q4. Consider the following statements:
- The right to freely roam throughout India and the right to travel overseas is derived from Article 19 of the Indian Constitution.
- Under International Law, the International Covenant on Economic, Social and Cultural Rights deals with the right to travel abroad.
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both
- None
CHECK ANSWERS:-
Answer: d
Explanation:
- Statement 1 is not correct. The right to freely roam throughout India’s territory is guaranteed by Article 19. But, the right to travel overseas is derived from Article 21 of the Constitution i.e. right to life and personal liberty.
- Statement 2 is not correct. Under International Law, the International Covenant on Civil and Political Rights deals with the right to travel abroad.
- Article 12 of the 1966 International Covenant on Civil and Political Rights deals with the right to travel abroad. It gives everyone the right to leave any country, including his own.
Q5. With reference to Indian history, which of the following statements is/are correct?
- The Nizamat of Arcot emerged out of Hyderabad State.
- The Mysore Kingdom emerged out of Vijayanagara Empire.
- Rohilkhand Kingdom was formed out of the territories occupied by Ahmad Shah Durrani.
Select the correct answer using the code given below.
- 1 and 2 only
- 2 only
- 2 and 3 only
- 3 only
CHECK ANSWERS:-
Answer: a
Explanation:
- Statement 1 is correct. The Nizamat of Carnatic (Arcot) was under the legal purview of the Nizam of Hyderabad. Later it emerged from Hyderabad as an independent state.
- Statement 2 is correct. The Mysore Kingdom founded and ruled by the Wodeyar family emerged from the Vijayanagara Empire.
- Statement 3 is not correct. The Rohilkhand Kingdom emerged during the decline of the Mughal Empire.
I. UPSC Mains Practice Questions
- Even multiple laws haven’t been able to get rid of the stigma attached to the lives of Sanitation workers. Elaborate on some of the issues faced by sanitation workers in India. (250 words; 15 marks)[GS-2, Social Justice]
- By asserting its right to neutrality in the Ukraine crisis, India has, in fact, chosen a side. Do you agree? Discuss. (250 words; 15 marks)[GS-2, International Relations]
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CNA 08 Apr 2022:-Download PDF Here
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