Big relief for market as govt withdraws FPI surcharge: 15 key announcements

Finance Minister Nirmala Sitharaman on Friday announced the roll back of the controversial tax surcharge on the Foreign Portfolio Investment (FPIs) announced in the Budget last month. "The enhanced surcharge levied by Finance Act, 2019 on long and short term capital gains tax is being withdrawn," Sitharaman said in a special media briefing.

Here are the key announcements:
 

• Surcharge on gains of FPIs and domestic investors withdrawn
• Withdraw the enhanced surcharge levied on LTCG & STCG
• CSR will only be treated as civil liability, not criminal matter
• Govt to infuse upfront Rs 70,000 crore into public sector banks to enable release of Rs 5 trillion liquidity in the market
• All tax notices to be issued from centralised system
• Banks will have to pass on repo rate reduction to consumers
• Aadhar-based KYC to be permitted for opening of demat accounts and investing in mutual funds
• NBFCs to be permitted to use the Aadhaar authenticated bank KYC to avoid repeated processes
• Pending GST refunds to be paid to small businesses in 30 days
• No angel tax for startups
• Both EVs and liquid fuel driven vehicles will continue to be registered
• Govt will come out with a scrappage policy for old vehicles
• Ban on govt departments lifted for purchase of vehicles to replace old ones
• Govt allows additional 15% depreciation on vehicles acquired from now till March 2020: FM on measures to ease building auto inventories
• BS-IV vehicles purchased up to Mar 2020 will remain operational for entire period of registration: FM on continuation of old vehicles