Govt to release ₹70,000 crore immediately to state-run banks2 min read . Updated: 23 Aug 2019, 06:42 PM IST
- Surcharge on domestic investors in equity markets also withdrawn
- Public sector banks to get ₹70,000 crore recapitalisation immediately
Finance Minister Nirmala Sitharaman today announced measures to revive economic growth and markets. Government will withdraw enhanced surcharge on long-term/short-term capital gains arising from transfer of equity shares/units for foreign and domestic investors, the finance minister said. She also said that GST regime will be simplified further and the government will release ₹70,000 crore capital upfront to public sector banks to boost credit to different sectors of the economy.
The higher tax applied to individuals and FPIs earning more than ₹2 crore which led to a sharp fall of Indian equity markets. FPIs have pulled out over $1 billion in August from the Indian markets.
Here are the key highlights of what the finance minister said:
Withdrawal of super-rich surcharge on FPIs, domestic investor will be for entire fiscal year and the withdrawal will cost exchequer ₹1,400 crore, said Revenue Secretary
Govt withdraws enhanced surcharge on long-term/short-term capital gains arising from transfer of equity shares/units
Govt withdraws enhanced tax surcharge on FPIs
Withdrawal of angel tax provisions for start-ups and their investors
Public sector banks to get ₹70,000 crore recapitalisation immediately. Additional lending and liquidity to the tune of ₹5 lakh crores can be made available by providing this capital for the PSBs
In order to encourage investment in the capital market, it has been decided to withdraw the enhanced surcharged levied by Finance (No. 2) Act, 2019 on long/short term capital gains arising from transfer of equity shares/units referred in section 111A and 112A respectively.
To mitigate genuine difficulties of startups and their investors, it has been decided that Section 56(2) (viib) of the Income-Tax Act shall not be applicable to a startup registered with DPIIT.
It has also been decided to set up a dedicated cell under Member of CBDT for addressing the problems of startups. A startup having any income-tax issue can approach the cell for quick resolution of the same.
In order to reduce harassment and bring in greater efficiency, public sector bank to return return of loan documents within 15 days of loan closure
Banks to make home, auto loans cheaper
All pending GST refunds due to MSMEs till now shall be paid within 30 days from today
Housing finance companies will now get an additional ₹20,000 crore from the NHB
Govt departments told to replace old vehicles
Banks have agreed to link repo rate to interest rate; this will cause reduced EMIs for housing and vehicle loans and other retail loans
NBFC to be permitted to use Aadhaar-authenticated bank KYC to avoid repeated processes
Reform is a continuous process for the govt
Income tax scrutiny will be faceless and randomised across the country from Vijayadashami
We are responsive, momentum of reforms to continue
Reform is a continuous process and we're treating it as a continuing endeavour
MCA to review Sections in Companies Act for CSR violations
GST regime to be simplified further
To meet GSTN officials soon to further simplify the GST regime
Global GDP projected at 3.2% and it could be revised lower
The US and Germany have seen inversion of yield curve
As a result of US-China trade war and currency devaluation, very volatile situation has developed in global trade
India is well placed as compared to its peers
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