Daily Current Affairs- 21st March 2026

Daily Current Affairs- 21st March 2026

India Notifies New Income Tax Rules Under 2025 Act

In the News: The Government of India has notified the Income Tax Rules, 2026, which will come into effect from April 1, 2026. These rules implement the provisions of the Income-tax Act, 2025, replacing older procedural systems with updated compliance structures, stricter reporting mechanisms, and modernised taxation norms for digital and cross-border businesses.

Key Points:

• About the Reform: The Income Tax Rules, 2026, mark a major overhaul of procedural and compliance systems under India's direct taxation framework. Notified by the Ministry of Finance, the rules aim to enhance transparency, digitisation and standardisation across the taxation system while reducing the overall number of rules to simplify procedures.
• Digital Taxation & Significant Economic Presence (SEP): The rules introduce clear guidelines for taxing digital and remote businesses operating in India. The concept of Significant Economic Presence (SEP) has been strengthened, with tax applicable if transactions exceed ₹2 crore or the user base exceeds 3 lakh users, primarily targeting global digital companies operating in India.
• Stronger Stock Exchange Compliance: Stock exchanges will now be required to maintain audit trails for 7 years, prevent deletion of transaction records, and submit monthly reports on modified transactions to improve transparency and data integrity.
• Capital Gains Rules Simplified: Clear guidelines have been introduced for complex transactions including debenture conversions, cross-border restructuring, and asset income disclosures. A zero-coupon bond framework has also been introduced, requiring applications 3 months before issuance, investment-grade ratings from two agencies, and defined fund usage timelines.
• Cross-Border Taxation Powers: Enhanced powers have been granted to India's tax authorities for cross-border taxation. For non-resident income attribution, authorities can now estimate income using a percentage basis, global profit ratios, or any other reasonable method.
• Dividend Rules & Domestic Control: Companies will now be required to maintain share registers, hold general meetings, and pay dividends only within India, implying stronger domestic control over dividend distribution. A simplified expense framework has also been introduced, allowing direct expenses plus an additional 1% of investment value.

CAPF Bill 2026

In the News: The Union Cabinet approved the Central Armed Police Forces (General Administration) Bill, 2026 on March 10, 2026, seeking to formalise and expand IPS deputation in CAPFs. The Bill has triggered significant controversy, with retired CAPF officers demanding public consultation and alleging it contradicts a May 2025 Supreme Court ruling directing progressive reduction of IPS deputation in CAPFs.

Key Points:

• About CAPFs: The Central Armed Police Forces include the CRPF, BSF, ITBP, CISF, and SSB, performing critical functions such as border guarding, counter-insurgency operations, and internal security management. The total strength of CAPFs is around 10 lakh personnel, including approximately 13,000 Group A cadre officers, with nearly 93,000 vacancies across all ranks.
• Existing System of IPS Deputation: Prior to the Bill, IPS deputation in CAPFs was governed by executive orders, with 20% of DIG-level posts and 50% of IG-level posts reserved for IPS officers. There was no comprehensive statutory framework, leading to ambiguity and prolonged litigation.
• Key Provisions of the CAPF Bill 2026: The Bill proposes to formalise and expand IPS deputation by reserving 50% of Inspector General (IG) posts, at least 67% of Additional Director General (ADG) posts, and all posts of Special DG and DG for IPS officers. It also aims to create an umbrella legal framework to regulate recruitment and service conditions of Group A officers in CAPFs.
• Rationale Behind the Bill: The government argues the Bill brings administrative clarity by replacing fragmented executive orders with a statutory framework, reduces litigation between cadre and IPS officers, strengthens Centre-State coordination, and enhances operational efficiency through experienced IPS leadership.
• Supreme Court Judgment (May 2025): On May 23, 2025, the Supreme Court ruled that Group A Executive Cadre officers of CAPFs are Organised Group A Services (OGAS) and directed progressive reduction of IPS deputation up to the IG level within two years, along with a time-bound cadre and service rules review within six months. The MHA challenged the judgment but the Supreme Court dismissed the review petition on October 28, 2025, making the ruling final.
• Government's Legislative Response: The CAPF Bill 2026 is widely seen as a legislative response to balance the Supreme Court's judicial directions with the government's administrative preferences. Critics, however, contend it directly contradicts the court's directive to reduce IPS deputation.

Renewable Energy Ministry demands sweeping powers

In the News: The Ministry of New and Renewable Energy (MNRE) has made a case before a parliamentary committee for a significant expansion of its administrative authority, arguing that it should be recognised as the "Central Government" in all matters pertaining to renewables under the Electricity Act, 2003, effectively seeking to redraw institutional boundaries with the Ministry of Power.

Key Points:

• Background: As of January 31, 2026, India has installed 271.96 GW of non-fossil fuel capacity out of a total of 520.50 GW, with the MNRE targeting 500 GW of non-fossil capacity by 2030. However, actual electricity generated from non-fossil sources stands at only about 25%, as coal remains the only reliable source for consistent demand.
• Why MNRE Seeks Expanded Powers: Fragmented oversight across multiple ministries, central agencies, and state governments is slowing decision-making and affecting the pace of renewable energy deployment.
• Key Powers Sought: MNRE has sought authority to design electricity markets for RE, notify bidding guidelines, frame tariff determination principles for the CERC, guide CERC under Section 107 of the Electricity Act, and oversee planning and monitoring of Renewable Purchase Obligations (RPOs).
• Institutional Claims on Transmission: MNRE has asked that the Central Electricity Authority (CEA) coordinate with it on RE regulations and that the National Committee on Transmission work under MNRE's guidance — traditionally the turf of the Ministry of Power.
• Large Hydro Administrative Anomaly: Large hydropower was reclassified as renewable in 2019, but its administration was never shifted from the Ministry of Power to MNRE, creating a mismatch where targets and administration sit in different ministries.
• Decentralised RE Gap: India's decentralised RE share stands at only 15% against a global average of 40%. MNRE acknowledged the absence of a dedicated policy framework for off-grid applications like biogas plants, solar pumps, and rural cold storages.

International Day of Forests 2026: Theme, Importance and Global Significance

In the News: The International Day of Forests 2026 was observed on March 21, 2026, with the theme "Forests and Economies", highlighting the critical role forests play in driving economic prosperity, sustaining livelihoods, and supporting long-term sustainable development worldwide.

Key Points:

• About the Day: The International Day of Forests is observed annually on March 21. It was proclaimed by the United Nations General Assembly in 2012 to promote conservation and sustainable use of forest resources. Countries are encouraged to carry out local, national and international activities linked to forests and trees, including tree planting drives.
• 2026 Theme — "Forests and Economies": The theme emphasises the strong link between forests and economic development. Forests provide income, employment and raw materials supporting industries and communities. They also sustain family and community-based agriculture, improve agricultural productivity, and protect watersheds.
• Economic Significance of Forests: According to the International Union for Conservation of Nature (IUCN), more than 1.6 billion people depend on forests for subsistence, income or employment. The forest sector provides at least 13 million formal jobs, along with 45–50 million jobs in informal and small-scale forest-based enterprises.
• Role in Bioeconomy: As countries transition towards a sustainable bioeconomy, forest products offer nature-based alternatives to carbon-intensive materials while creating new economic opportunities. The 2026 theme seeks to place forests at the centre of sustainable, resilient and long-term economic planning.

Crowds throng  lake for Mahad Satyagraha at 99

In the News: Thousands gathered at Mahad in Maharashtra's Raigad district to mark the beginning of the centenary year of the historic Chavdar Tale Satyagraha, led by Dr. B.R. Ambedkar on March 20, 1927, when he asserted the right of Dalit communities to drink water from a public tank.

Key Points:

• The Mahad Satyagraha (1927): On March 20, 1927, Dr. Babasaheb Ambedkar led thousands of people to drink water from the Chavdar Tale (lake) in Mahad, asserting the right of the then "untouchable" communities to access public facilities. This movement predated the Salt Satyagraha by three years.
• March 20 — Social Empowerment Day: March 20 is observed as Social Empowerment Day in India in commemoration of the Mahad Satyagraha.
• Centenary Year Significance: The year 2026–2027 has been declared the Year of Social Harmony and Equality by the Maharashtra government, as it also coincides with the 200th birth anniversary of Mahatma Jyotiba Phule and the 150th birth anniversary of Saint Gadge Maharaj.
• Government Initiatives: Maharashtra Chief Minister Devendra Fadnavis performed the bhoomipoojan for the 'Chavdar Tale Water Purification and Premises Beautification Project', aimed at providing clean water, a welcoming environment for visitors, and preservation of the site's sanctity.
• CPI(M) Convention: The CPI(M), along with the Jati Ant Sangharsh Samiti, organised a two-day 'Human Rights Convention against Manuwad and Capitalism' on March 19–20 at Mahad. CPI(M) General Secretary M. A. Baby called upon participants to carry Ambedkar's legacy of social transformation to the masses throughout the year.
• Manusmriti Burning Centenary: December 25, 2027 will mark the centenary of Dr. Ambedkar's public burning of the Manusmriti in Mahad. The CPI(M) and allied organisations plan to hold a larger gathering in Mahad in December to mark the occasion.
• R. B. More Remembered: Leaders paid tribute to R. B. More, a key organiser of the Mahad Satyagraha. His grandson Subodh More recalled how the 1927 movement marked the emergence of leadership from within the Dalit community.