 "Finance Minister Nirmala Sitharaman, MoS for Finance Anurag Thakur, finance secretary Rajiv Kumar")
Finance Minister Nirmala Sitharaman 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on income of foreign portfolio investors (FPIs) on short- and long-term gains on equity in the Budget 2019 stands withdrawn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
