Ratan Tata: From unlikely heir to architect of Tata group’s global legacy

World’s most influential industrialist Ratan Tata passes away at 86

After his appointment as the chairman of Tata Sons in 1991, Tata’s philanthropic efforts gained new momentum

New regime may take effect only from FY26; cut-off date for removal of indexation benefit may be advanced.

The government is considering measures to address concerns regarding the Budget proposal to revise the taxation of long-term capital gains (LTCG) from real estate transactions. Sources familiar with the deliberations indicate that the new LTCG regime could be effective from April 1 next year, instead of the proposed July 23, 2024. Additionally, the government may retain the option of indexation benefit in the new regime or change the cut-off date for the removal of indexation from April 1, 2001, to a later date.

These potential changes could be implemented through an amendment to the Finance Bill 2024 when it is taken up by the Lok Sabha this week. However, the government plans to stick to the new LTCG tax rate of 12.5%.

Indexation is designed to adjust gains from property sales by accounting for inflation during the ownership period, using the cost price index for calculations. In the Budget 2024-25, Finance Minister Nirmala Sitharaman proposed reducing the LTCG tax rate to 12.5% from 20% for property and other unlisted assets. The proposed regime would scrap the indexation benefit for properties purchased on or after April 1, 2001.

This proposal has led to concerns that post-tax gains from property sales could decrease, potentially reducing demand for real estate units and transactions. However, government officials and independent experts argue that the new regime may not increase tax outgo for property sellers in all cases. For properties appreciating at high rates, especially in metro cities, the new regime could be more beneficial to taxpayers.

In a post on ‘X’ on July 24, the Income Tax Department stated that nominal real estate returns are generally in the range of 12-16% per annum, significantly higher than inflation. Indexation for inflation is around 4-5%, depending on the holding period, leading to substantial tax savings for many taxpayers.

“Now, there is an appreciation of the fact that nominal real estate returns are not in the range of 12-16% in general and in all places. Factoring in this, some relief may be given,” an official said.

“While considering some relief, a fine balance has to be worked out so that the government does not lose substantially and taxpayers also benefit. It is being examined if indexation can be offered as an option and if so, how it could be structured,” the official added.

Analysts have also suggested ways to fine-tune the new regime. Shalini Mathur, Director, Tax and Economic Policy Group, EY India, proposed, “Where long-term capital gain is limited vis-à-vis inflation, taxpayers may be given the option to choose between the old regime of 20% LTCG tax rate with indexation benefit or the new regime of 12.5% LTCG rate without indexation.”

A robust cybersecurity strategy hinges on three fundamental pillars: confidentiality, integrity, and availability. While most organizations have become adept at safeguarding confidentiality and integrity, system availability often takes a backseat. The recent global Microsoft IT outage, triggered by an automated software update from CrowdStrike, highlights the critical importance of this often-neglected aspect. Described by industry analysts as one of the largest IT outages in history, it affected more than 8.5 million devices and resulted in direct losses exceeding $8 billion. The widespread chaos—from grounded flights to halted financial services—illustrates the catastrophic impact of compromised system availability.

Bringing the Focus Back on System Availability

The Microsoft outage underscores the need for robust incident response plans and backup strategies. To prevent similar disruptions, organizations must adopt a more strategic and comprehensive approach to IT management.

Thorough Testing Before Deployment

CIOs should enforce rigorous testing across various environments and configurations to catch potential issues early. Staging environments that mirror production setups allow for detailed examinations of updates, including automated, manual, and regression testing, ensuring new updates do not disrupt existing functionalities.

Diversified Solutions

Relying heavily on major IT vendors can expose organizations to significant risks. Diversifying vendors and implementing robust redundancy and failover mechanisms can mitigate these risks. Adopting a hybrid or multi-cloud infrastructure reduces the risk of single points of failure by spreading workloads across multiple environments, enhancing redundancy, flexibility, and disaster recovery capabilities.

Gradual Rollouts

Deploying updates in phases allows organizations to monitor and resolve issues before a full-scale launch. Robust rollback procedures are crucial for quick reversion to a stable version if problems occur. Automated rollback capabilities can speed up recovery, reducing the need for manual intervention.

Advanced Detection Tools

Utilizing cutting-edge monitoring tools to spot anomalies immediately post-deployment allows for rapid intervention. Real-time monitoring and alert systems are essential for catching issues as they arise. Comprehensive incident response plans with clear protocols for quick issue identification, isolation, and resolution are vital. These plans should include root cause analysis and post-incident reviews to continually improve response strategies.

Proactive Preparedness

Regularly testing disaster recovery plans through simulated drills helps identify weaknesses and areas for improvement. Partnering with reliable providers can further enhance preparedness and response capabilities by leveraging their expertise and resources.

Effective Communication

Clear and timely communication about updates and patches is key to minimizing risk during software updates. Organizations should inform clients about the time and need for the update and highlight the potential risks of not installing updates and patches, such as security breaches, compatibility issues, reduced efficiency, and obsolescence.

Reassessing Cybersecurity Strategies

Organizations must embrace a comprehensive cybersecurity approach that integrates robust incident response plans, diversified risk management strategies, and transparent crisis communication protocols. Robust contingency planning and transparent crisis communication are crucial to maintaining trust and providing clear updates during disruptions. Rigorous testing of updates in controlled environments can prevent systemic failures.

As our digital ecosystem advances, so too must our cybersecurity strategies. Balancing rapid updates with thorough testing and employing staged deployments can help avert crises, emphasizing that cybersecurity encompasses not just defense against attacks, but also the assurance of system availability.

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