Foreign Investors to Be Exempted from Super Rich Tax Introduced in Budget, Says FM
Staff Reporter / New Delhi
Union Finance Minister Nirmala Sitharaman today announced a series of measures to achieve higher economic growth. In order to encourage investment in capital market, the government has decided to withdraw the enhanced surcharge levied by Finance (No. 2) Act, 2019 on long and short-term capital gains arising from transfer of equity shares and units. Ms Sitharaman was briefing media in New Delhi this evening.
Among other measures, Corporate Social Responsibility violations will now be treated as civil matters and not as a criminal one. All tax notices and orders will be issued through a centralized and computerized system to end harassment of taxpayers.
The government has also decided to withdraw angel tax provisions for startups and their investors. There will be a dedicate cell under a member of CBDT for addressing the problems of start-ups.
A startup having any income tax issue can approach the cell to resolve the issue. It has also been decided upfront release of additional seventy thousand crore rupees; lending and liquidity to the tune of five lakh crore rupees by providing upfront capital to Public Sector Banks. Ms Sitharaman also announced withdrawal of enhanced surcharged on Foreign Portfolios Investors (FPIs).
Speaking on the occasion, the Finance Minister said, India’s growth in comparison to other countries is relatively better. She said, the country’s growth rate is higher than United States and China. Ms Sitharaman said, the current projected global GDP is 3.2% and is probably going to be revised downwards. She said, global demand is going to be weak.
The Finance Minister said, consumption growth is down in not just emerging but also advanced economies. Global trade is volatile due to trade war.
The Finance Minister said, reform has been the top agenda for the government since 2014. Ms Sitharaman said, the momentum with which government wants to carry out reforms will continue. She stressed that government’s focus will be on reforms and simplification of taxes.
Anand Sharma: The grim economic scenario has finally jolted the govt out of its slumber. A bleated effort to repair self-inflicted damage by rolling back the ill-advised budgetary announcements may not be adequate for an economy in ICU.