Big boost to FPIs, domestic equity investors! Modi govt withdraws enhanced surcharge

Union Finance Minister Nirmala Sitharaman today announced measures decided by the Narendra Modi government to boost the economy. The biggest benefit annoucned by Sithraman was for FPIs and domestic equity investors. In order to encourage investment in the capital market, Sitharaman said that the government has decided to withdraw enhanced surcharge levied by the Finance No. 2 Act 2019. "In simple words, the enhance surcharge on FPI goes, surcharge on domestic investors in equity goes. Pre-budget position is restored," said Sitharaman.

Sitharaman said that the central government has kept reform at the top of its agenda since 2014 and they are maintaining the momentum. Addressing media at a press conference, Sitharaman allayed fears over the state of economy. She said that India's GDP growth continues high above other countries. She said that consumption growth is down in not just emerging but also advanced economies. A volatile situation has developed in global trade, she said. 

The finance minister also announced that CSR violations will not be treated as a criminal offence and instead be as civil liabilities. On or after 1st October 2019 all the Income-tax orders, notices, summons, letters, etc shall be issued through a centralised computer system.

Commenting on growth rate in India, Sitharaman said, "The growth rate, still in comparison to many countries is high and if anything even in comparison to the US and China, our growth rate is higher than everybody else."

Faceless IT assessment!

Sitharaman said there will be faceless scrutiny from 'Vijay Dashmi' this year, "which will mean that there shall not be even, that one odd over-enthusiastic officer who might go and sit & talk about things, which may be construed as harassment."