Surcharge rollback to capital for PSBs, FM announces steps to boost economy

Finance Minister Nirmala Sitharaman, MoS for Finance Anurag Thakur, and finance secretary Rajiv Kumar during a press conference in New Delhi | PTI
Finance Minister Nirmala Sitharaman on Friday announced a slew of measures to revive demand in the economy. The banking, auto and start-up sectors would benefit majorly, say experts, leading to a market rally on Monday.

IN 2 MINUTES

SURCHARGE ROLLBACK
  • Enhanced surcharge levied on income of foreign portfolio investors (FPIs) on short- and long-term gains on equity in the Budget 2019 stands withdrawn 
  • The government would forgo Rs 1,400 crore as a result, not putting much pressure on its tight revenue channels 
GEAR SHIFT for AUTO SECTOR 
  • Deferment of one-time registration fees for vehicles till June 2020 
  • Additional 15% depreciation on all vehicles acquired till 31 March 2020 
  • Government to focus on building EV infrastructure, instead of replacing EVs with ICVs 
RELIEF TO START-UPS 
  • Start-ups registered with the government will not face any “angel tax” under Section 56(2)(viii)(b) of the Income Tax Act 
  • Dedicated cell in the Central Board of Direct Taxes to address issues faced by start-ups 
QUICK CAPITAL FOR PUBLIC BANKS 
  • The Rs 70,000-crore recapitalisation announced in the Budget will be sped up, and will be completed by the end of August 
  • This will enhance PSBs’ lending capability by Rs 5 trillion 
PENDING GST REFUNDS ADDRESSED 
  • 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 
REPO RATE LINKED-LOANS
  • Banks will launch new loan products with external rates such as repo rate, Treasury bill rate as benchmark, making transmission fast and transparent 
  • Will mostly benefit housing, vehicle and retail loans, and could speed up sale of beleaguered sectors