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  • Operation Pawan  

    Why in the News?

    • For the first time, the Chief of Army Staff (COAS) General Upendra Dwivedi paid homage at the National War Memorial to soldiers who died during Operation Pawan (1987–1990).
    • Event held on 25 November 2025.

    What was Operation Pawan?

    • A major military operation launched by the Indian Peace Keeping Force (IPKF) in Sri Lanka.
    • Objective: Disarm the LTTE under the Indo–Sri Lanka Accord (1987).
    • Duration: October 1987 – 1990.

    Background

    • Under the Indo–Sri Lanka Peace Accord (July 1987):
      • India agreed to deploy IPKF to enforce peace in Northern & Eastern Sri Lanka.
      • The LTTE initially agreed to surrender weapons but soon reneged.

    Casualties in Operation

    • Hundreds of Indian soldiers killed, and over 1,000 injured.
    • One of India’s largest overseas military operations.

    National War Memorial

    • Location: New Delhi, near India Gate.
    • Dedicated to soldiers of post-Independence operations including:
      • 1947–48, 1962, 1965, 1971 wars
      • Kargil 1999
      • IPKF operations, and counter-insurgency missions.

    Importance of the IPKF Mission 

    • First large-scale out-of-country deployment of Indian forces.
    • Political and military complexities:
      • Fighting LTTE, once seen sympathetically by India.
      • Hostile terrain and guerrilla warfare challenges.
    Operations undertaken by the Army towards upliftment of the local population in remote areas to include addressing of their basic needs is called:  (2024)

    (a) Operation Sankalp 

    (b) Operation Maitri 

    (c) Operation Sadbhavana 

    (d) Operation Madad

    This question is highly relevant as it tests the specific format of knowledge required for Operation Pawan (the name and mission of a defence action).

  • Sleep Apnea & Parkinson’s Disease 

    Why in the News?

    • A new study published in JAMA Neurology (Nov 24, 2025) found that untreated Obstructive Sleep Apnea (OSA) can nearly double the risk of developing Parkinson’s disease.
    • The study analysed 11 million+ U.S. military veterans’ medical records (1999–2022).
    • Use of CPAP (Continuous Positive Airway Pressure) significantly reduces the elevated risk, making sleep quality a potential neuroprotective factor.

    Key Findings

    • Untreated OSA → ~2× higher likelihood of developing Parkinson’s.
    • CPAP therapy helps maintain oxygen levels → reduces neurodegeneration risk.
    • Repeated oxygen drops during sleep may lead to long-term neuronal stress.
    • Parkinson’s disease risk increases naturally with age, especially >60 years, but untreated OSA further elevates vulnerability.

    About Parkinson’s Disease 

    • A progressive neurodegenerative disorder affecting movement.
    • Caused by loss of dopaminergic neurons in the substantia nigra.
    • Symptoms: tremors, rigidity, bradykinesia, cognitive decline (late stages).
    • No cure; treatments focus on symptom management.

    Prelims Pointers

    • New association identified: OSA ↔ Parkinson’s disease risk.
    • Published in JAMA Neurology.
    • Largest dataset used for this linkage: 11 million veterans.
    • CPAP is not just a sleep device—it may offer neuroprotection.
    • Chronic intermittent hypoxia implicated in neurodegeneration.
    Excessive release of the pollutant carbon monoxide (CO) into the air may produce a condition in which oxygen supply in the human body decreases. What causes this condition? (2010)

    (a) When inhaled into the human body CO is converted into CO2

    (b) The inhaled CO has much higher affinity for haemoglobin as compared to oxygen

    (c) The inhaled CO destroys the chemical structure of haemoglobin

    (d) The inhaled CO adversely affects the respiratory centre in the brain

    This PYQ is chosen because the core pathological connection linking Sleep Apnea and Parkinson’s disease is the concept of chronic oxygen deprivation (Hypoxia) and its neurodegenerative impact.

  • Aravalli Hills: 90% Lose Protection, FSI Red-Flag Ignored

    Why in the News?

    • On 20 Nov 2025, the Supreme Court approved the government’s definition of Aravalli Hills as any hill 100 m or higher above local ground.
    • Problem: This definition excludes 90% of Aravalli hills, making them open for mining and construction.

    Background

    • The Aravalli Range runs from Delhi to Gujarat through Haryana and Rajasthan.
    • It is oldest fold mountains in India and plays a key role in ecology, dust control, groundwater, and wildlife corridors.
    • In 2024, the SC asked the government to create a uniform Aravalli definition.

    FSI’s Warning

    • Lower hills (20–100 m) act as natural windbreaks, blocking sand and dust from Thar desert.
    • Removing protection risks:
      • Higher air pollution in NCR
      • Loss of wildlife corridors
      • Impact on agriculture and farmer livelihoods
    If there were no Himalayan ranges, what would have been the most likely geographical impact on India? (2010)

    1. Much of the country would experience the cold waves from Siberia. 

    2. Indo-gangetic plain would be devoid of such extensive alluvial soils. 

    3. The pattern of monsoon would be different from what it is at present. 

    Which of the statements given above is/are correct? 

    (a) 1 only 

    (b) 1 and 3 only 

    (c) 2 and 3 only 

    (d) 1, 2 and 3

    The profound geographical and ecological functions of a major mountain range, which directly parallels the catastrophic risks associated with losing the Aravallis.

  • 🔴[UPSC Webinar for 2026] By Prayas Sir, Civilsdaily IAS | Four Stages of Learning from Topper Copies | What I Learned After Reading 100+ Topper Copies | Join on 27th November at 7PM

    🔴[UPSC Webinar for 2026] By Prayas Sir, Civilsdaily IAS | Four Stages of Learning from Topper Copies | What I Learned After Reading 100+ Topper Copies | Join on 27th November at 7PM

    Register for the session


    Read about Webinar


    Every UPSC topper writes differently, but they think in patterns.
    After reading and dissecting over 100+ topper copies, I discovered that there’s a clear evolution behind every high scoring answer, a four stage learning process that separates 360–400 Mains scorers from the rest.

    In this session, I’ll decode those four stages, what toppers really do when they read questions, how they transition from content collection to answer construction, and how you can replicate that progression in your preparation.

    Prayas Sir, Civilsdaily IAS

    What I will cover (practical, no fluff):

    1. The 4 Stages of Learning from Topper Copies

    • Stage 1: Information Replication, what beginners imitate and why it doesn’t work.
    • Stage 2: Structure Recognition, how toppers arrange ideas for maximum impact.
    • Stage 3: Analytical Depth, how they build why and how into every paragraph.
    • Stage 4: Personal Voice, how individuality and balance make a copy stand out.

    2. The Anatomy of a Topper’s Answer

    • How toppers think before they write, their mental checklist.
    • The 5 second framework to identify demand of the question.
    • Examples from real topper copies, what makes one answer fetch 4 marks and another 6.

    3. How to Use Topper Copies the Right Way

    • The biggest mistake, copying format without understanding reasoning.
    • How to reverse engineer toppers’ use of examples, transitions, and linkages.
    • How to translate their structure into your own note making and mock writing.

    4. Practical Tools You will Take Away

    • My 3 column copy analysis template, content, structure, and insight.
    • A step by step method to analyse any topper answer in 2 minutes.
    • Real examples from GS 2, GS 3, and Essay answers.


    Why attend this session:

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    • To access the Prelims Microthemes PDF that complements Mains content integration.

    Join us, for a 45 minute live Zoom session on 27th Nov at 7PM.

    See you in masterclass.



    It will be a 45 minute session, post which we will open up the floor for all kinds of queries which a beginner must have. No questions are taboo and Prayas sir is known to be patiently solving all your doubts.

    Join us for a Zoom session on 27th Nov at 7 PM. This session is a must attend for you If you are attempting UPSC for the first time or have attempted earlier and now preparing for 2026/2027, then it is going to be a valuable session for you too.

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    By the end, you’ll have razor-sharp clarity and a clear path to crack UPSC with confidence and near-perfect certainty. 

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  • [26th November 2025] Hindu OpED Trump-MbS summit- $1 trillion among friends

    PYQ Relevance

    [UPSC 2021] The USA is facing an existential threat in the form of China, that is much more challenging than the erstwhile Soviet Union. Explain.

    Linkage: The Trump-MbS summit reflects the U.S. strategy of rebuilding alliances to counter China’s growing influence in West Asia, where Beijing has expanded economically and diplomatically. The revived U.S.-Saudi partnership strengthens America’s geopolitical position in a region where China had begun to outpace it.

    Mentor’s Comment

    The Trump-Mohammed bin Salman (MbS) summit marks a major inflection in West Asia’s geopolitical landscape. The article examines the renewed U.S.-Saudi alignment, its military-economic scale, its contrast with earlier strains, and its strategic implications for India. This simplified yet UPSC-rich analysis helps aspirants understand the evolving balance of power in West Asia and its global consequences.

    WHY IN THE NEWS 

    The article is significant because the U.S.-Saudi bilateral relationship has revived after years of drift, culminating in Trump’s first West Asia visit where both sides advanced $242 billion defence deals and $270 billion investment commitments, a scale unseen since the 1945 FDR-Saudi pact. The summit signals the return of transactional, high-value U.S.-Saudi cooperation, a sharp contrast to the Biden years of friction, Khashoggi tensions, and Saudi diversification toward China and Russia. This reset represents one of the largest bilateral economic-military consolidations globally, reshaping energy, security, and global power equations.

    INTRODUCTION

    The U.S.-Saudi partnership has historically shaped post-Second World War geopolitics, especially in energy and security. The Trump-MbS summit renews this legacy by combining massive defence sales, investment promises, and realignment on regional issues such as Iran, sanctions, and energy security. The revived partnership represents both strategic opportunity and geopolitical recalibration.

    What drives the renewed U.S.-Saudi strategic alignment?

    1. Historic continuity: Reconnects with the 1945 FDR-Ibn Saud “oil-for-security” pact revived in 2005 and 2025.
    2. Exceptional summit chemistry: Trump and MbS elevated bilateral commitments during Trump’s first regional visit.
    3. High-value agreements: $242 billion military commitments and $270 billion investment forum deals signal unprecedented scale.
    4. Shared interests: Addresses U.S. need for Gulf stability and Saudi need for defence, investment, and autonomy.

    How has the bilateral relationship evolved from past highs and lows?

    1. Historical tensions: 1973 oil embargo, 1980s missile purchases from China, Yemen war tensions, and the Khashoggi killing strained ties.
    2. Biden-era rifts: Public criticism of Saudi human rights issues pushed Riyadh closer to China and Russia.
    3. Saudi diversification: Riyadh’s engagement with Xi Jinping and Middle Eastern summits signal multipolar diplomacy.
    4. Return to U.S. orbit: Trump’s visit and renewed defence-economic convergence restore traditional alignment.

    What are the key outcomes of the Trump-MbS summit?

    1. Massive defence deals: Commitment to supply $242 billion in U.S. military equipment.
    2. Investment surge: MbS aims to raise Saudi investments in the U.S. economy from $600 billion to $1 trillion.
    3. Energy cooperation: Coordination on oil production to maintain a moderate, sustainable price.
    4. AI & tech collaboration: U.S. and Saudi firms advance “future-ready AI projects,” including AI chips.
    5. Regional stabilisation agenda: Coordination on Iran, Yemen ceasefire, and navigation security.

    What are the emerging regional geopolitical implications?

    1. U.S.-Saudi-Russia triangle: Saudi alignment tempers Russian oil revenue by stabilising global oil prices.
    2. Sanctions dynamics: U.S.-Saudi cooperation supports enforcement of sanctions on Iran and Venezuela.
    3. Security architecture: Signals continuity of U.S. commitment to Gulf security despite regional volatility.
    4. NATO+ narrative: U.S. sees Saudi as a “major non-NATO ally,” pushing deeper defence integration.

    What does this recalibration mean for India?

    1. Energy stability: Coordinated U.S.-Saudi oil policy keeps prices moderate, critical for India’s energy security.
    2. Defence + tech prospects: Saudi Vision 2030 and U.S. tech investments open new opportunities for Indian firms.
    3. Strategic partnership: India needs to accelerate the Comprehensive Economic Partnership Agreement (CEPA) with Saudi Arabia.
    4. Geopolitical balancing: India must navigate U.S.-Saudi rapprochement while maintaining ties with Iran and Russia.

    CONCLUSION

    The Trump-MbS summit revives a historic partnership at a scale unmatched in recent years. By combining large defence contracts, investment flows, and re-alignment on energy security, the U.S.-Saudi partnership is again central to West Asian geopolitics. For India, this moment offers both opportunity and the need for strategic agility.

     

  • Rupee is Asia’s worst performing currency

    Introduction

    The Indian Rupee has depreciated 4.3% against the US Dollar in 2025, making it Asia’s worst-performing currency. Analysts warn that the INR may slide to ₹90 per USD if the India-US trade deal does not materialise soon. The rupee’s movement is now driven more by global dollar strength than by domestic fundamentals. Persistent capital outflows, a rising trade deficit, U.S. tariffs, and a surge in gold imports have intensified pressure on the domestic currency.

    Why This Matters: Rupee Hits Asia’s Lowest Position

    The rupee’s sharp 4.3% calendar-year depreciation marks one of the steepest declines among Asian currencies. This contrasts sharply with the appreciation seen in much of the Asian currency complex, led by the Chinese Yuan through strong intervention by China’s central bank. The situation is aggravated by India’s record $41.7 billion trade deficit, U.S. tariff shocks, and a gold price spike that spurred a 200% rise in ETF investments. The worsening outlook raises concerns of the rupee breaching ₹90 per USD, a level not previously approached in recent years.

    Drivers Behind the Rupee’s Depreciation

    1. Global Dollar Strength: Dollar appreciation of 3.6% over two months increased pressure on most Asian currencies, including the INR.
    2. External Shocks:
      1. U.S. tariffs on Indian goods directly added stress.
      2. High precious metal prices increased import bills.
    3. Capital Outflows: The current account remains “benign”, but the depreciation is driven by capital flight, not trade fundamentals.
    4. Comparative Weakness: INR weakened more than IDR (2.9%) and PHP (1.3%), marking a distinct underperformance.

    Rupee’s Position Relative to Asian Peers

    1. Underperformance vs. China and Indonesia: Specialists note that while Indonesian Rupiah and Chinese Yuan have depreciated, INR weakened further.
    2. Better Than Structurally Weak Majors: INR still fares better than the Japanese Yen and Korean Won, which face domestic policy constraints.
    3. Asian Currency Complex Trend: Most Asian currencies appreciated, driven by Chinese intervention through PBOC/SAFE signalling.

    Market Movements and Recent Lows

    1. New Lows Recorded: Rupee touched 88.8 per USD on 21 November 2025, breaking earlier RBI-supported levels.
    2. Intraday Weakness: Fell further to 89.66, signalling intense currency-market stress.
    3. Partial Recovery: Rupee recovered to 89.22 by Tuesday, though still significantly weaker on a monthly basis.

    Trade Deficit and Macro Pressures Intensifying Rupee Weakness

    1. Record Trade Deficit: October witnessed a $41.7 billion merchandise trade deficit triggered by tariff hikes.
    2. Gold Import Surge:
      1. Gold imports spiked to $14.72 billion in October.
      2. Gold ETF demand rose by 200% due to soaring global prices.
    3. Twin External Shocks: Tariffs + gold price rise combine with geopolitical uncertainty to pressure the currency.

    Impact of the U.S. Tariffs and Policy Changes

    1. 50% Tariff Imposed by U.S.: Direct impact on India’s export competitiveness, worsening the trade deficit.
    2. Cumulative Effect on Rupee: Tariffs + gold imports + dollar strength + capital outflows create a compounding depreciation effect.
    3. Forward Outlook: Without a trade deal with the U.S., the rupee may breach ₹90 per USD.

    Conclusion

    The rupee’s position as Asia’s worst-performing currency signals deeper stresses in India’s external sector. The depreciation stems from global dollar dominance, tariff shocks, capital outflows, and rising import bills. While partial recoveries occur, the broader trajectory depends heavily on the India-US trade negotiations and management of external vulnerabilities. Ensuring macroeconomic stability will require coordinated steps in trade policy, forex management, and domestic economic resilience.

    PYQ Relevance

    [UPSC 2018] How would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of India?

    Linkage: It is directly linked to GS-3: External Sector, as it examines how tariffs and currency moves affect India’s macroeconomic stability. It is relevant for understanding exchange-rate volatility, CAD pressures, and global protectionist trends.

  • Decoding personality rights in the age of AI

    Introduction

    Personality rights, traditionally rooted in privacy, dignity, and control over one’s identity—are facing unprecedented stress due to generative AI. Deepfake technologies, synthetic media, and AI-generated impersonation are creating new risks of deception, reputational harm, financial loss, and large-scale identity exploitation. Recent legal disputes involving celebrities highlight widening vulnerabilities and the absence of a robust legal framework in India.

    Why in the News? 

    Amitabh Bachchan and Aishwarya Rai recently approached the Delhi High Court seeking protection against AI-generated videos that imitated their identity, voice, and catchphrases. This marks a major turning point because AI deepfakes are now powerful enough to replicate personalities at scale and for commercial misuse, something never seen before. The case exposes how India lacks a unified personality-rights legislation even as misuse grows rapidly, contrasting sharply with the stricter frameworks in the US, EU, and China.

    Erosion of Personality Rights in the AI Era

    1. AI Deepfakes: Enable face swaps, voice clones, and synthetic content that manipulate identity and support misinformation, malice, extortion, and erosion of trust.
    2. Unchecked AI Use: Generates mass commodification of human identity, intensifying reputational and financial vulnerabilities.
    3. Technological Trigger: The rise of generative AI tools has amplified impersonation risks and blurred lines between authenticity and deception.

    How Does Indian Law Currently Address Personality Rights?

    1. Fragmented Framework: India relies on privacy principles, constitutional protection, and selective case law but lacks a dedicated statute.
    2. Judicial Protection:
      1. Justice K.S. Puttaswamy case (2017) upheld privacy as a fundamental right.
      2. Amitabh Bachchan v. Rajat Nagi (2022) recognised personality rights.
      3. Anil Kapoor v. Simply Life India (2023) banned misuse of his catchphrase “jhakaas” and likeness for diluted brand value.
      4. Arijit Singh v. Golden Ventures LLP (2024) protected his voice from AI replication.
    3. Regulatory Limits: IT Act 2000 and Intermediary Guidelines 2021 address impersonation and deepfakes but lack enforcement clarity, especially for cross-border misuse.

    How Do Global Jurisdictions Handle Personality Rights?

    1. United States
      1. Right of Publicity: Treated as transferable property.
      2. Tennessee’s ELVIS Act (2024) bans unauthorized AI voice cloning and deepfake performances.
      3. Character.AI Cases: Highlight how AI models create digital personas that blur reality.
      4. First Amendment Constraints: Free speech limits over-regulation.
    2. European Union
      1. GDPR: Provides dignity-based protection over personal and biometric data.
      2. EU AI Act (2024): Classifies deepfakes as high risk, mandates transparency and labelling.
    3. China
      1. Internet Court Rulings (2024): AI-generated synthetic voices must not deceive consumers.
      2. AI-related cases treat voice actors and media workers as harmed individuals needing redress.

    Why Does India Need a Comprehensive Personality-Rights Law?

    1. Legal Vacuum: No dedicated statute addressing AI impersonation, deepfakes, monetisation of likeness, and cross-border exploitation.
    2. AI Platforms’ Liability: Lack of clear obligations for watermarking, transparency, and algorithmic accountability.
    3. Global Pressure: AI’s transnational nature demands compliance with international standards.
    4. Growing Harm: Cases of identity theft, synthetic celebrity endorsements, and psychological impact from digital cloning are rising.

    What Should India’s Legal Framework Include?

    1. Explicit Definition: Clear categorisation of personality rights, covering image, voice, likeness, name, gestures, and distinctive traits.
    2. Platform Accountability: Mandatory watermarking, AI content labelling, and traceability.
    3. Consent Architecture: Requirement of explicit consent for any AI-generated replication.
    4. Civil and Criminal Remedies: Compensation mechanisms and penalties for willful impersonation.
    5. Cross-Border Enforcement: Harmonisation with EU, US, and global regulatory practices.
    6. Ethical AI Standards: Transparency norms, audit trails, and safeguards against dataset misuse.

    Conclusion

    AI has radically transformed the nature of identity and personhood, challenging traditional legal doctrines surrounding privacy and personality rights. India must move from fragmented protections to a comprehensive, future-ready framework that secures individual autonomy while supporting responsible AI innovation. Without such reform, the risks of impersonation, exploitation, and identity erosion will only multiply.

    PYQ Relevance

    [UPSC 2024] Right to privacy is intrinsic to life and personal liberty and is inherently protected under Article 21 of the Constitution. Explain.

    Linkage: This question directly links to personality rights and AI deepfakes, as both derive from the privacy-autonomy framework under Article 21. It is relevant because the erosion of digital identity through AI impersonation tests the very constitutional protection the Puttaswamy judgment established.

  • Pazhayar River Pollution in Nagercoil

    Why in the News?

    • Rampant sewage discharge into the Pazhayar River in Nagercoil (Tamil Nadu), especially near Ozhuginesary, has raised serious environmental and public health concerns.
    • A 2024 situational report highlighted severe domestic, agricultural, and industrial (rubber processing) pollution in the river.
    • Nagercoil Corporation has initiated steps to seal sewage inlets, but pollution remains widespread.

    About the Pazhayar River

    • A perennial river in Kanniyakumari district, Tamil Nadu.
    • Part of the Kodhayar River Basin, covering 1,646.964 sq km.
    • Basin lies entirely within Tamil Nadu, with a small stretch in Radhapuram (Tirunelveli district).

    Biological Oxygen Demand (BOD) is a standard criterion for (2017)

    (a) Measuring oxygen levels in blood 

    (b) Computing oxygen levels in forest ecosystems 

    (c) Pollution assay in aquatic ecosystems 

    (d) Assessing oxygen levels in high altitude regions

  • Volcanic Eruption in Ethiopia and Impact on India

    Why in the news?

    The Hayli Gubbi volcano in Ethiopia’s Afar region erupted on 23 November 2025 after nearly 12,000 years of dormancy, producing a massive ash plume rising to ~14 km (45,000 ft). High-level winds transported volcanic ash across the Red Sea and Arabian Peninsula towards western and northern India, causing temporary disruption in aviation operations.

    Key Facts: Location & Geological Background 

    Hayli Gubbi Volcano

    • Type: Shield volcano
    • Location: Afar Region, Ethiopia (part of the East African Rift System)
    • Dormancy: Last known activity ~10,000–12,000 years ago (Holocene threshold)
    • Geological Setting: Lies on the triple junction where the Arabian, Nubian, and Somali plates are diverging → high tectonic activity.

    East African Rift System (EARS)

    • A major continental rift zone.
    • Known for active volcanism (Erta Ale, Dabbahu, Nabro, etc.).
    • Possible future site of a new ocean basin due to plate divergence.

    Impact on India

    1. Flight Disruptions

    • Several international flights cancelled or delayed (Delhi, Mumbai, Hyderabad, Kochi).
    • Airlines: Air India, IndiGo, Akasa Air initiated precautionary measures.
    • Aircraft inspections ordered for those that flew through potentially affected air corridors.

    2. Airspace Management

    • Civil Aviation Ministry, Air Traffic Control (ATC), and the India Meteorological Department (IMD) issued continuous advisories.\
    • No major safety threat, but routing adjustments and cancellations made as precaution.

    3. No Impact on Local Weather or Air Quality

    • IMD clarified:
      • Ash remained in upper troposphere.
      • No impact on ground-level AQI.
      • Delhi’s poor air quality is unrelated, caused by local pollution.

    4. Clearance Timeline

    • Ash plume expected to move completely towards China by 7:30 pm, Nov 25.

    Why Aviation Avoids Volcanic Ash? 

    • Ash melts inside jet engines → forms glassy deposits → engine flameout.
    • Damages navigation systems & windshields.
    • Reduces visibility.
    • Can cause stalls, loss of thrust, and total engine failure.

    Relevant Organisation:
    Volcanic Ash Advisory Centers (VAACs) issue global alerts—here, Toulouse VAAC monitored the plume.

    Consider the following: (2024)

    1. Pyroclastic debris 

    2. Ash and dust 

    3. Nitrogen compounds 

    4. Sulphur compounds 

    How many of the above are products of volcanic eruptions? 

    (a) Only one 

    (b) Only two 

    (c) Only three 

    (d) Only four

  • Capital Gains Accounts (Second Amendment) Scheme, 2025

    Why in the news? 

    The Ministry of Finance has notified the Capital Gains Accounts (Second Amendment) Scheme, 2025, introducing major changes to the existing Capital Gains Account Scheme (CGAS), 1988. The amendments aim to modernise processes, expand banking access, and increase clarity for taxpayers seeking capital gains exemptions.

    About Capital Gains Account Scheme (CGAS), 1988

    • Launched by the Central Government in 1988.
    • Objective: To help taxpayers claim exemptions on long-term capital gains when reinvestment cannot be completed before the ITR filing due date.
    • Linked mainly to Section 54, 54F, and related provisions of the Income Tax Act.

    Why CGAS is Needed?

    • Exemption requires reinvestment of capital gains within:
      • 2 years (purchase of property)
      • 3 years (construction of property)
    • If this period extends beyond the ITR filing deadline, the taxpayer can temporarily deposit unutilised gains in CGAS to keep the exemption claim valid.

    Important Conditions

    • Deposit must be made before filing Income Tax Return.
    • Money deposited is treated as reinvested for exemption.
    • If the amount is not utilised within the stipulated period, it becomes taxable long-term capital gains in that year.
    • Only long-term capital gains qualify — short-term gains are NOT eligible.

    Who Can Deposit in CGAS?

    • Any person with long-term capital gains, including: Individuals, HUFs, Companies, Firms, Trusts, and Any eligible taxpayer seeking exemption
    • Mainly used by property sellers who need more time to reinvest.

    Capital Gains Accounts (Second Amendment) Scheme, 2025 — Key Changes

    • Expansion of Authorized Banks: Previously limited mostly to Public Sector Banks + IDBI Bank.
      • Now extended to 19 private and small finance banks at all non-rural branches.
    • Non-rural branch condition: Branch must be located in an area with population ≥ 10,000 (2011 Census).
      • Rural branches cannot open CGAS accounts.
    • Wider Definition of Electronic Payments: Electronic deposits can now be made through: Credit cards, Debit cards, Net banking, IMPS, UPI, RTGS, NEFT and BHIM Aadhaar Pay.This modernises the earlier narrow definition of “electronic mode”.
    • Online Closure of CGAS Accounts (From April 1, 2027): Closure requests can be submitted electronically using:
      • Digital Signature (DSC)
      • Electronic Verification Code (EVC)
      • Earlier: Closure only through physical branches.
    • Clarification on Effective Date of Deposit: For cheque/DD/electronic transfers, the date of receipt of the payment instrument along with account application at the Deposit Office is treated as the effective date.Removes ambiguity around last-day deposits for tax exemption.
    • Electronic Statements Permitted: Banks can now issue electronic statements instead of physical passbooks.
      • Aligns CGAS with general digital banking norms.
    •  Extension of CGAS to Section 54GA: CGAS can now be used for exemptions under Section 54GA:

      • Relates to capital gains arising from shifting an industrial undertaking from an urban area to a Special Economic Zone (SEZ).
      • Broadens applicability beyond property-related reinvestments.
    Consider the following statements: (2025)

    I. Capital receipts create a liability or cause a reduction in the assets of the Government. 

    II. Borrowings and disinvestment are capital receipts. 

    III. Interest received on loans creates a liability of the Government. 

    Which of the statements given above are correct? 

    (a) I and II only 

    (b) II and III only 

    (c) I and III only 

    (d) I, II and III

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