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Key announcements by FM Nirmala Sitharaman on Indian economy, FPIs, GST and Automobile

Addressing a press conference along with top finance ministry officials at National Media Centre in New Delhi, Sitharaman made a slew of announcements regarding the state of economy FPIs, GST , NBFCs and Automobile sector.

Key announcements by FM Nirmala Sitharaman on Indian economy, FPIs, GST and Automobile
Union Finance Minister Nirmala Sitharaman addressing a function to celebrate 'Ten Years of Competition Law Enforcement', in New Delhi on Friday. (ANI Photo)
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New Delhi: FM Nirmala Sitharaman on Friday announced withdrawal of enhanced surcharge on Foreign Portfolio Investments (FPIs), that was revealed during presentation of Union Budget 2019.

Addressing a press conference along with top finance ministry officials at National Media Centre in New Delhi, Sitharaman made a slew of announcements regarding the state of economy FPIs, GST , NBFCs and Automobile sector.

Here are the key highlights of her announcements

- Government withdraws enhanced surcharge on FPIs, pre-budget position is restored.

- In order to encourage investment in capital market, FM decided to withdraw enhance 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. 

- 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.

- FM Nirmala Sitharaman announced measures for banks & MSMEs, says releasing Rs 70,000 cr of capital upfront for bank capitalisation.

- GST filing will be simplified further to meet the GSTN to remove further glitches in the system. All pending GST refunds due to MSMEs till now shall be paid within 30 days from today. In future, the GST refunds to MSMEs will be paid within 60 days.

- 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.

- Increase in NHB funding from Rs 20,000 crore to Rs 30,000 crore. NBFCs will be now be permitted to use Aadhar based KYC of bank for their customers.

- Withdrawal of Sec 56(2)(viib) of IT Act Dedicated cell at CBDT for addressing challenges of startups; Sec 56(2) (vii)(b) to not apply to DPIIT registered startups.

- Income Tax orders, notices, summons, letters, etc to be sent only through centralized system. It will have a computer generated unique ID Number.

- NBFC’s can now use Aadhaar authenticated bank KYC to avoid the repeated process.

- BS4 vehicles purchased before 31.3.20 will remain operational till validity of the car's registration.

- Higher vehicle registration fee deferred till June 2020.

- 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.