Union Finance Minister Nirmala Sitharaman addresses the concerns over the on-going economic slowdown in the country after Moody’s Investors Service reduced India’s GDP growth rate to 6.2 % from the previous estimation of 6.8%.
The intent to announce a slew of measures to revive growth in the economy was to understand the concerns of the industry and help the sinking economy.
The FM gave into the demands of foreign investors and announced the roll back of the surcharge on long and short term capital gains arising from transfer of equity shares. This step was necessary to attract capital investment in the market.
Among the key measures that were announced by the FinMin were, the angel tax on the start-ups to be done away with and CSR violations to be treated as a civil offence. With the vision of ending harassment of taxpayers, the Finance Minister also announced that all tax notices will be issued from a centralised system. The government soon to infuse the 70k crore in the PSB.
The FM also announced the measures that were aimed at making the home and auto loans cheaper. Rs 100 lakh crore would be infused in for infrastructure and measures would be taken to smoothen the liquidity flow. (MSMEs) also featured in Sitharaman’s agenda of reform and she assured that all the pending dues will be paid in the next 30 days. Moreover the MSME Act would soon be amended and a singular definition would be announced.
The minister also added that she would talk about ways of tackling the slowdown across sectors after studying the feedback from the representatives.
Here are the major announcements from our Finance Minister
- MSMEs pending GST refunds shall be paid within 30 days
- On going GDP for calendar year is 6.2 % Estimation of India’s GDP For 2020 was 6.8 percent
- Expect Pre-filed I-T returns, and faceless scrutiny of taxation by Vijayadashmi, said FM Sitharaman.
- Abolished enhanced surcharge levied on long term and short term capital gains on equities. However, surcharge will still be applicable on capital gains from debt Instruments.
- Abolished surcharge on FPIs and domestic investors
- Withdrawn Tax provision for start-ups, and their investors
- An additional capital of Rs.70,000 crore has been sanctioned for banks, which will enable loans worth Rs 5 lakh crore
- MCLR will receive all Repo Rate cuts from Banks
- Customer will receive loan documents from Public Sector Banks within 15 days of the closure of a loan
- To simplify the taking up of credit NBFCs will now be able to use Aadhaar-authenticated KYCs
- Housing finance companies gets additional Rs.20,000 crore from the NHB. Funding to the NHB has been increased to Rs 30,000 crore, up from Rs 20,000 crore, said FM Sitharaman.
- An additional 15 percent depreciation will be provided on vehicles acquired from now till March 2020, taking the total depreciation to 30 percent.
- Higher surcharge will continue to be applicable for Higher Net Worth Individuals (HNIs), but it will be reviewed after the 75th Independence Day, said FM Sitharaman.
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