New Delhi, August 23: Waking ahead in a much needed relief to the Indina economic stance that has been in a weave of frets, Finance Minister Nirmala Sitharaman on Friday ahead of the Income Tax due schedules moved up withdrawing the enhanced surcharge on foreign investors.
Coming along with a host of other measures related with angel tax, bank recapitalisation and income tax notices, the Finance head also announced that no angel tax would be imposed on startups and their investors if registered with the DPIIT. “No taxpayer will have anything to do with any notice three months after the date of the issue”, Sitharaman said while addressing the forum.
Further having a significant impact on the economical state of the nation, she said that in order to improve domestic bond market, the Centre was working with the RBI to make it more conducive for investors and bond issuers, as well as facilitate increased trading for price discovery. “The government will also take further action on development of credit default swap markets in consultation with the Reserve Bank and market regulator Sebi”, she said outlining steps like labour reforms, amendment to the bankruptcy law to increase investments.
Meanwhile, seeking to dispel doubts over the economy and government's growth agenda, Sitharaman said that India's GDP continued to grow at a faster pace than the global economy and any other major economy. “Global GDP growth may be revised downwards from the current estimate of 3.2 per cent, she said adding that globally the demand was going to be weak. But the Indian economy was growing faster than the global average and all other major economies”, she affirmed.
Therefore, viewing to boost economy harder, she approved to release Rs 70,000 crores upfront for public sector bank. “Additional lending and liquidity to the tune of Rs 5 lakh crores can be made available by providing this capital for the PSPs”, she added.
Sitharaman later talked about the simplification of the tax scrutiny process, and a simplfied GST system. “The whole process is going to be faceless and randomised”, she said further announcing removal of enchanced surchage levied on domestic investors in equity market, and long and short-term capital gains.
These favoured announcements being well calibrated, Sitharaman’s move to boost the economy gets a thumbs up, making it just easier for the filers to carry their business easy, and ultimately having a significant impact on the sentiment in the economy.