Clearing the air around the slowing economy, Finance Minister Nirmala Sitharaman said despite weak global demand, the Indian economy was growing faster than the global average and all other major economies. She also announced steps to boost the auto sector and immediate release of? 70,000 crore for capitalization of public sector PSU banks. In this year's Budget, the government had announced higher surcharge on individuals earning more than ? 2 crores. It was also applicable for foreign portfolio investors operating as trusts or as an association of persons.
- The government will withdraw enhanced surcharge on long-term/short-term capital gains arising from the transfer of equity shares/units
- Banks will effect timely rate cuts to pass on the benefits of RBI's repo rate cuts to borrowers.
Key highlights Announced by Finance Minister
- The government will withdraw an enhanced surcharge on long-term/short-term capital gains arising from the transfer of equity shares/units. This will apply to both foreign and domestic investors.
- All pending GST refunds till now shall be paid in 30 days. FM Sitharaman vows to simplify the GST system further.
- Angel Tax on start-ups withdrawn.
- Online tracking system for home, auto loans.
- PSBs to return loan documents to customers within 15 days of loans closure.
- CSR violation would be treated as a civil offense, not a criminal offense.
- All Income Tax notices must be disposed off within 3 months.
- The current global GDP growth is expected at 3.2% and probably going to be revised downwards.
- NBFC can now use Aadhaar-based KYC
- Aadhaar-based KYC for opening Demat accounts and investment in mutual funds
- One-time settlement policy for MSME loans, Laws to be amended to ensure one MSME definition
- Both electric vehicle and internal combustion vehicles will continue to be registered.
These are certain highlights announced by Finance Minister Nirmala Sitharaman on Friday to lift market sentiment and boost growth. India’s growth is estimated from 6.8% to 6.2% in the current fiscal year, which was preceded by a similar revision in forecasts by the Reserve Bank of India, IMF and the World Bank confirming the growing apprehension.