Aug. 24, 2019

Union Finance Minister Nirmala Sitharaman announced a number of measures to boost growth.

Some of the steps announced are:

  • Controversial surcharge on Foreign Portfolio Investors (FPIs) to be withdrawn. But increased surcharge will apply to high net-worth individuals earning more than ₹2 crore a year.

  • Violations of Corporate Social Responsibility (CSR) rules will not be treated as criminal offences.

  • The government also decided to front-load the ₹70,000 crore of capital infusion in public sector banks that was announced in the Budget, a move that is further aimed at increasing private investment by facilitating greater credit disbursal by the banks.

  • The government had rescinded its ban on the purchase of new vehicles by its departments to replace old ones. Vehicles bought till March 31, 2020, will also be eligible for an additional 15% depreciation.

  • To curb the discretionary powers of the tax authorities, from October 1, all notices and summons by the Income Tax Department would be generated by a centralised computer and would carry a unique code. Any notices not carrying these codes would be considered invalid.

  • Public sector banks have also decided to increase their repo rate-linked loan offerings.

  • Government has announced an additional ₹20,000 crore of liquidity to the housing finance companies, over and above the ₹10,000 crore earlier announced.

Source : The Hindu