Finance Minister Nirmala Sitharaman on Friday made several announcements to boost the Indian economy including enhanced surcharge on long-term/short-term capital gains arising from transfer of equity shares/units for foreign and domestic investors and angle tax on startups.
She also announced that the CSR violations wouldn't be treated as criminal offence. GST regime will be simplified further and all pending GST refunds will now be released within 30 days and future refunds will be paid within 60 days.
Public sector banks will get Rs 70,000 crore recapitalisation immediately.
Here are the highlights of Nirmala Sitharaman's press confrence:
6:10 pm: FM Sitharaman says BS IV vehicles purchased till 31 March 2020 to remain operational for entire period of registration. We want to dispel the notion regarding electric vehicles.
6:05 pm: An inter-ministerial task force has been formed by the finance ministry to finalise the pipeline for spending Rs 100 trillion for developing modern infrastructure over 5 years: FM Sitharaman
5:59 pm: The definition of MSME to be altered. A single, meaningful definition for MSMEs to be proposed through amendment in the MSME Act. It will not only be linked to turnover: FM Nirmala Sitharaman
5:58 pm: "All pending GST refunds due to MSMEs till now shall be paid within 30 days. In future, all GST refunds to be paid within 60 days from the date of application."
5:55 pm: FM says, to take advantage of liquidity with PSBs and last mile customer of NBFCs, PSBs to fast track collaboration for loans to MSMEs, small traders, etc in co-origination mode with NBFCs.
5:54 pm: Housing finance companies will now get an additional Rs 20,000 crore from the NHB, said FM Sitharaman.
5:52 pm: NFBCs will now be able to use Aadhaar-authenticated KYCs to simplify the taking up of credit, said FM Sitharaman.
Banks to issue improved transparent one-time settlement policy to benefit MSMEs and retail borrowers: FM
5:50 pm: Banks have agreed to pass on all Repo Rate cuts into their MCLR. Banks have decided to launch repo-rate linked products. Public Sector Banks will ensure the return of loan documents to customers within 15 days of the closure of a loan.
5:45 pm: Banks have decided to pass on rate cuts through MCLR reduction to benefit all customers.
5:44 pm: Banks to launch an external benchmark-linked loan products. This will result in reduced EMI for housing, vehicles and other retail loans: FM
5:43 pm: We are releasing Rs 70,000 crore as upfront capital for public sector banks. It will create liquidity to the tune of Rs 5 trillion (Rs 5 lakh cr) for corporates, retail borrowers, MSMEs, etc: FM Sitharaman
5:42 pm: Goverment to set up a dedicated cell for addressing taxation issues of startups: FM Sitharaman
5:41 pm: Section 56 2(b) Of I-T Act not to be applicable for startups registered with DPTIT, said FM Sitharaman.
5:39 pm: To encourage investment in capital market, it has been decided to withdraw the enhanced surcharge levied by the Finance Act 2019 on long or short-term capital gains. In other words, the enhanced surcharge on FPI goes, says FM
5:38 pm: Government has decided to withdraw the surcharge on Capitals Gains.
5:37 pm: Issue of I-T orders, summons and letters etc shall now go through a centralised system from October 1. All assessments will be cleared in three months: FM Sitharaman.
5:35 pm: "CSR violations will not be treated as a criminal offence and would instead be civil liability. We have shifted 16 sections from prosecution to monetary penalties."
5:32 pm: FM Sitharaman to hold a meeting with GSTN officials on Sunday to clear glitches in the flow of refunds.
5:30 pm: GST will soon become simpler with less number of forms going ahead, promises Sitharaman.
5:29 pm: FM Sitharaman is listing steps taken to “reform and simplification” of taxation, labour, environment clearances, etc.
5:28 pm: Nirmala Sitharaman says Income Tax scrutiny will be faceless and randomised across the country from Vijayadashmi.
5:25 pm: She says the ongoing trade war between the US and China has hurt trade globally. However, India's growth rate is better compared to other nations.
5:22 pm: FM Sitharaman is listing steps taken to “reform and simplification” of taxation, labour, environment clearances, etc.
5:20 pm: FM Sitharaman says that the current projected global GDP growth is 3.2%. She adds that it is probably going to be revised downwards. Many organisations say that the global demand is going to be weak.
5:15 pm: Finance Minister Nirmala Sitharaman is talking to the media.