Finance Minister Nirmala Sitharaman and top officials of the ministry are addressing the media. The Finance Minister said that the government would withdraw the increased surcharge on long-term / short-term capital gains arising from transfer of equity shares / units to foreign and domestic investors. It also said that the GST regime will be further simplified and the government will issue ₹ 70,000 crore capital upfront to public sector banks to boost loans in various sectors of the economy.
In the 2019-20 budget, the government had increased it from 15% to 25% on taxable income between 92 crores and ₹ 5 crores and from 15% to 37% for incomes above ₹ 5 crores. It was also applicable to FPIs operating as trusts or association of individuals. These will be withdrawn.
The main features of what the Finance Minister said are:
⦁ Government withdraws surcharge on long term / short term capital gains arising out of transfer of equity shares / units
⦁ Government withdraws increased tax surcharge on FPI
⦁ Withdrawal of angel tax provisions for start-ups and their investors
⦁ 70,000 crore to public sector banks to get recapitalization immediately. Additional lending and liquidity of ₹ 5 lakh crore can be provided by providing this capital for PSBs
⦁ To encourage investment in the capital market, it was decided to withdraw the surcharge levied by the Finance (No. 2) Act, 2019 on long-term / short-term capital gains arising from the transfer of equity shares / units referred to in Section 111A. has gone. 112A respectively.
⦁ To alleviate the real difficulties of startups and their investors, it has been decided that section 56 (2) (viib) of the Income Tax Act will not apply to startups registered with DPIIT.
⦁ It has also been decided to set up a dedicated cell under the member of CBDT to address the problems of startups. On any income tax issue a startup can approach SAIL for a quick resolution of the same.
⦁ To reduce harassment and bring in greater efficiency, public sector banks return loan documents within 15 days of closing the loan.
⦁ Bank to make home, auto loan cheaper
⦁ All pending GST refunds due to MSME will be paid within 30 days from today
⦁ Housing finance companies will now get an additional ₹ 20,000 crore from NHB
⦁ Departments of government asked to replace old vehicles
⦁ Banks have agreed to link the repo rate to the interest rate; This will reduce EMI for housing and auto loans and other retail loans.
⦁ NBFCs should be allowed to use Aadhaar-certified bank KYC to avoid repeated procedures
⦁ Reform is a continuous process for the government
⦁ With Vijayadashami, income tax checks across the country will become faceless and haphazard.
⦁ We are responsible, the pace of improvement continues
⦁ Improvement is a continuous process and we are treating it as a continuous effort
⦁ MCA to Review Section in Companies Act for CSR Violations
⦁ GST governance should be simplified further
⦁ The GST regime will soon be simplified to meet the GSTN officials.
⦁ Global GDP is estimated at 3.2% and may be revised downward
⦁ US and Germany have seen the reverse of the yield curve
⦁ As a result of the US-China trade war and currency devaluation, a very volatile situation has developed in global trade.
⦁ India is well placed compared to its peers.