Nirmala Sitharaman removes enhanced surcharge on FPIs as per demands

Giving in to demands of overseas investors, Finance Minister Nirmala Sitharaman on Friday anunced a rollback of enhanced surcharge on foreign portfolio investors levied in Budget. Surcharge on long and short term capital gains arising from transfer of equity shares has been withdrawn, she said. " pre-Budget position is restored," minister said. It is being done to encour investment in capital market, finance minister said.

Budget anuncement on surcharge

decision taken in Budget to levy enhanced surcharge had spooked stock markets. Following increase in surcharge in Budget, effective income tax rate for individuals with a taxable income of Rs 2-5 crore went up to 39 percent from 35.88 percent and for those above Rs 5 crore to 42.7 percent. Earlier this month, capital market participants and foreign institutional investors presented a charter of demands to Sitharaman. se demands included a rollback of surcharge on FPIs and review of dividend distribution tax.

NITI Aayog's Rajiv Kumar clarifies Ecomy remark: ' need to panic'

Aim of rollback of surcharge

Sitharaman furr said that to mitigate genuine difficulties of startups and ir investors, it has been decided to withdraw angel tax provisions for m. A dedicated cell under a member of CBDT too will be set up for addressing problems of startups, she said. Her statement in a climate of ecomic slowdown seen in Indian ecomy. se anuncements were made to boost Indian investment.

FM Nirmala Sitharaman introduces computerised system on IT tices

FM on tackling Tax-terrorism

Earlier in her address, Sitharaman anunced a centralised system for Income Tax issues, tices, etc. She elaborated that from October 1, 2019, onwards, a centralised system would issue tices to tax assessees. Boosting wealth creators, she said that system will generate unique identification numbers (DIN) to track issues and tices. Sitharaman made this statement in a climate of ecomic slowdown seen in Indian ecomy. 

Home, vehicle, or retail loans to become cheaper: FM Sitharaman

Current Ecomic Slowdown

Sources have reported that India's ecomic slowdown led to Moody's reducing India's growth forecast by 0.4 % in GDP for next fiscal year (FY 21). Sources have said that slow growth in ecomy was allegedly triggered after some anuncements in Finance Minister Nirmala Sitharaman's maiden Budget speech. surcharge levied on foreign investors has allegedly led to an exodus of investors from Indian markets, as per sources. Recent trends have also seen a collapse in stock exchange points due to slowing ecomy particularly in automobile, FMCG, construction, MSME sectors.