Need an FM with basic understanding of economics: Cong slams Sitharaman’s announcement

Daniel Fowler
August 24, 2019

In order to encourage investment in capital market, the government has made a decision to withdraw the enhanced surcharge levied by Finance (No. 2) Act, 2019 on long and short-term capital gains arising from transfer of equity shares and units. Since the Budget, the benchmark index, Sensex had fallen over 3,000 points after it touched a life-time high of 40,000 in May.

Angel tax and startups: The FM said that Section 56 (2)(viib) of the I-T Act, which taxes any money a company receives on the issue of its shares that exceeds its fair market value, would not be applicable to startups registered with the Department of Industrial Policy and Promotion (DPIIT). To mitigate genuine difficulties of startups, the Centre will set up cell led by member of CBDT for addressing problems of startups.

The banks will pass on RBI rate cut benefits to borrowers through the Marginal Cost of Funds based Lending Rate (MCLR) reduction which will benefit all borrowers. To reduce harassment and bring in efficiency, loan documents have to be returned in 15 days of loan closure. "On or after 1st October 2019 all the Income-tax orders, notices, summons, letters, etc shall be issued through a centralised computer system", said FM.

- Additional 15 percent depreciation on all vehicles to be allowed for all vehicles bought from now till March 31 2020, taking the total depreciation to 30 percent. The scrappage policy, if implemented, is likely to give stimulus to customers to make new purchases supported by government incentives in place of their old vehicles.

David Koch, billionaire businessman and influential GOP donor, dies at age 79
David guided the chemical equipment side of his company from his home in NY while Charles remained in Wichita. He believed he had a responsibility to a world that had given him so many opportunities to succeed.

In order to boost the sales of automobiles, Ms Sitharaman also said that the banks will have to make vehicle loans cheaper. Furthermore, she added that communication without a Director Identification Number (DIN) need not be taken seriously.

The finance ministry during the Budget on July 5 had proposed to increase surcharge on individuals having a taxable income above Rs 2 crore, a step that rattled many Foreign Portfolio Investors.

Meanwhile, non-banking finance companies (NBFCs) will be permitted to use the Aadhaar authenticated bank KYC to avoid repeated processes.

The government has decided to make necessary changes in PMLA (Prevention of Money Laundering Act) rules and Aadhaar regulations to ease the lending process.

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