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Government allows disinvested PSUs

  • Published
    15th Sep, 2021

GS-III: Economy 

  • Taxation, Investment

In order to facilitate the strategic disinvestment, Central board of Direct Taxes recently ordered that Section 79 of the Income-tax Act, 1961, shall not apply to an erstwhile public sector company which has become so as a result of strategic disinvestment.

  • Accordingly, loss incurred in any previous year prior to, and including, the previous year of strategic disinvestment shall be carried forward and set off by the erstwhile public sector company.

Prelims question:

Consider the following statements:

  1. Sale of government stake to the tune of 49% is called minority stake sale.
  2. De-nationalization is the sale transfer of entire state ownership to the private sector.
  3. Strategic Disinvestment always involves transfer of managerial control.

Which of the above statements are correct?

  • A.
  • B.
  • C.
  • D.

Mains Question:

The Unlawful Activities Prevention Act (UAPA) is often described as a ‘draconian’ law that undermines the fundamental right of citizens. In this context, discuss the need for such stringent laws in India. Also, suggest measures to reduce misuse of UAPA.   (250 Words)


  • In the introduction, give a brief overview of UAPA by providing its mandate, when it came into being etc.
  • Enumerate the need of UAPA Act in India
  • Enumerate the ways the Act is misused, providing data with regard to its misuse.
  • Suggest measures to reduce the misuse of UAPA
  • Conclusion

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