Economy – Taxation & Financial System

Background and key dimensions

• Provides a simplified mechanism to regularise eligible past non-disclosures.
• Taxpayers can disclose assets such as foreign bank accounts, financial investments and other specified overseas assets.
• Designed to improve voluntary compliance and financial transparency while reducing the compliance burden on small taxpayers.
• Important distinction: this is a limited disclosure window, not a general amnesty for serious tax evasion or undisclosed black money.
• The scheme must be understood alongside the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which provides the statutory framework for taxation and penalties relating to undisclosed foreign income/assets.
• Undisclosed foreign assets → tax evasion → Black Money Act → voluntary disclosure → improved tax compliance.
• Prelims Concept: FCNR(B) deposits are foreign-currency denominated deposits maintained by NRIs with Indian banks; the special RBI swap facility was intended to encourage foreign-currency inflows and help banks manage exchange-rate exposure.
• India's Democracy Needs Different Electoral Rhythms
• GS II
• Polity and Governance Federalism, Electoral Reforms, and Parliamentary Democracy
• One Nation, One Election (ONOE) seeks synchronised Lok Sabha and State elections, but critics argue it may weaken federalism and parliamentary accountability.
• The debate goes beyond cost and governance efficiency, raising concerns about constitutional balance, State autonomy and democratic choice.
• The Constitutional and Federal Concerns

Analytical use

• Connect the development with its institutional, policy, economic, social, environmental or security implications only where supported above.
• In a Mains answer, separate the verified development from broader evaluation and use the named evidence precisely.

Way forward

• Base recommendations on the gaps and institutional responsibilities identified in the source-grounded points.

Introduction

Begin with the immediate development and identify the central institution or policy issue.

Body

• Explain the relevant static concept.
• Present the principal source-backed facts.
• Analyse significance for India and the syllabus theme.
• Discuss supported challenges or implementation gaps.
• Use one named law, report, institution, date or example from the evidence box.

Conclusion

End with a balanced, institutionally feasible way forward without making claims beyond the available evidence.