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Surcharge rollback to capital for PSBs, FM announces steps to boost economy

The Rs 70,000-crore recapitalisation announced in the Budget will be sped up

Business Standard  |  New Delhi 

Finance Minister Nirmala Sitharaman, MoS for Finance Anurag Thakur, finance secretary Rajiv Kumar
Finance Minister Nirmala Sitharaman, MoS for Finance Anurag Thakur, and finance secretary Rajiv Kumar during a press conference in New Delhi | PTI

Finance Minister on Friday announced a slew of measures to revive demand in the economy.

The banking, auto and start-up sectors would benefit majorly, say experts, leading to a market rally on Monday.

IN 2 MINUTES

SURCHARGE ROLLBACK

  • Enhanced surcharge levied on income of (FPIs) on short- and long-term gains on equity in the Budget 2019 stands withdrawn
  • The government would forgo Rs 1,400 crore as a result, not putting much pressure on its tight revenue channels

GEAR SHIFT for AUTO SECTOR

  • Deferment of one-time registration fees for vehicles till June 2020
  • Additional 15% depreciation on all vehicles acquired till 31 March 2020
  • Government to focus on building EV infrastructure, instead of replacing EVs with ICVs

RELIEF TO START-UPS

  • Start-ups registered with the government will not face any “angel tax” under Section 56(2)(viii)(b) of the Income Tax Act
  • Dedicated cell in the Central Board of Direct Taxes to address issues faced by start-ups

QUICK CAPITAL FOR PUBLIC BANKS

  • The Rs 70,000-crore recapitalisation announced in the Budget will be sped up, and will be completed by the end of August
  • This will enhance PSBs’ lending capability by Rs 5 trillion

PENDING GST REFUNDS ADDRESSED

  • Pending GST refund requests of the MSMEs will be addressed within a month
  • In future, all GST refunds will be paid within two months of their application

REPO RATE LINKED-LOANS

  • Banks will launch new loan products with external rates such as repo rate, Treasury bill rate as benchmark, making transmission fast and transparent
  • Will mostly benefit housing, vehicle and retail loans, and could speed up sale of beleaguered sectors

First Published: Fri, August 23 2019. 22:36 IST
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