Nirmala Sitharaman’s economy booster; FPI surcharge, income tax, other relief for businesses, investors

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Updated: August 23, 2019 6:30:19 PM

Issue of I-T orders, notices and summons will now go through the centralised computer system and will contain a unique ID. Any communication without ID will not be valid. 

 finance ministry, Nirmala Sitharaman, income tax, gst, msme, car loan, house loan, HFCCredit support to HFCs has been raised from Rs 20,000 crore to Rs 30,000 crore to boost the purchase of houses.

The intention of the government is the resolution, not prosecution, says Finance Minister Nirmala Sitharaman in a press conference held on Friday evening. Talking about the slowdown, she underlined that there is a slowdown in the global demand but India has fared comparatively better. She added that not only the emerging economies but the advanced economies like the US and Germany are struggling too. US-China trade war and the devaluation of the currency by China have made the global trade difficult, said Nirmala Sitharaman. Many key decisions in the field of MSMEs, banking and taxation were taken by the Finance Minister.  

Key decisions:

  • The government withdrew additional surcharge on foreign portfolio investments.
  • Respecting and honoring the wealth creators, the government has decided not to treat the non-compliance of the CSR norms as a criminal offense, but it will still be treated as a civil responsibility.
  • Issue of I-T orders, notices and summons will now go through the centralised computer system and will contain a unique ID. Any communication without ID will not be valid. 
  • Return of loan mortgage document within 15 days of loan closure has been made mandatory.
  • NBFC can now use Aadhar activated KYC to reduce the process time. 
  • The banks have been asked by the government to make home and auto loans cheaper.
  • The government also released the Rs 70,000 crore of funds under recap plan announced in the budget upfront.
  • All GST pending refund of MSMEs will be paid within 30 days and refunds in the future will be processed in 60 days. 
  • Only single consent will now be required to establish a factory for MSMEs.
  • Government working on steps to directly benefit the end customers of rate cut. 
  • Online tracking of loan application to make it more transparent to the end customers. 
  • Credit support to HFCs has been raised from Rs 20,000 crore to Rs 30,000 crore to boost the purchase of houses.
  • Rs 70,000 crore capital infusion in public sector banks.
  • Home and Car EMIs to cost less. 

Do you know What is Long Term Capital Gains Tax, Repo Rate, Repo Linked Lending Rate (RLLR), Wholesale Price Index (WPI), Public Debt? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

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