Tax cut, push for auto sector: What Sitharaman has done to rescue economy

From Ahmedabad to Varanasi and then Mysuru to Guwahati and Chennai, Finance Minister Nirmala Sitharaman toured the length and the breadth of the country between August and September. Meeting traders, experts, entrepreneurs to gauge the pulse of the nation, Sitharaman has become a reformer, pulling all stops to get the economy out of a six-year-low growth rate.

Firing up Economy:

• Corporate tax slashed to 22%

• Rs 1.45 trillion revenue forgone

• New manufacturing firms can pay 15% tax

First Tranche: The Booster Dose 

• Rolling back the surcharge on income of FPIs

• Rs 1,400 crore forgone by government

• Took back the prison sentence for CSR norms violation

Auto sector push

• Deferment of one-time registration fees for vehicles till June 2020

• Additional 15% depreciation on all vehicles acquired till 31 March 2020

Angel for start-up 

No angel tax for start-ups under Income Tax Act

GST refunds

• 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

Second tranche: Big Bank Reforms

• 10 PSBs merged into four

• Strengthened bank boards

• Improved appraisal mechanism for top executives

• Rs 11,550 crore capital infused into weak banks

Third tranche: Expanding Exports 

• Rs 70,000-crore package for exports and real estate 

• Setting up a stress asset fund four housing 

• New scheme for reimbursement of taxes paid on exports

• Higher insurance cover to banks lending working capital for export

Fourth tranche: Improving Credit 

• “Loan melas” in 400 districts

• No stressed asset of MSMEs to be declared NPAs till March 2020