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Angel tax provisions for startups and investors withdrawn: Nirmala Sitharaman

File photo of Finance Minister Nirmala Sitharaman. Photograph:( ANI )

WION Web Team New Delhi Aug 23, 2019, 05.35 PM (IST)

Finance minister Nirmala Sitharaman announced a big rollback on taxation asserting that there would be no surcharge on long and short term capital gain.

Addressing a press conference, the finance minister said GST returns will be simplified even further. Sitharaman added that there would be no surcharge for FPI and domestic investors in the market. "All pending GST refunds due to MSMEs till now shall be paid within 30 days from today," the finance minister informed.

The minister said that Angel tax provisions for startups will be removed.

"Tax assessment will become faceless and random." "It is wrong to say the government is harassing taxpayers," she said. The minister said 1400 prosecutions were withdrawn and sixteen offences have been moved to "monetary penalty".

"BS4 vehicles purchased up to March 2020 will all remain operational for their entire period of registration," the finance minister added.

"Banks have now decided to pass on any rate cut through MCLR reduction to benefit all borrowers. This will result in reduced EMIs for housing loans, vehicles and other retail loans, by directly linking repo rates to the interest rates," the finance minister.

"CSR violation is not a criminal offence," the finance minister said. 

I-T notices will be through a centralised system, Sitharaman added.

India's finance minister said the global growth rate is forecast at 3.2 per cent, asserting that global demand is weak at the present.

"Just to give you briefly a picture of what is happening globally. The current projected global GDP growth is of about 3.2 per cent and probably is going to be even revised downwards," the finance minister said.

Sitharaman said that surcharge on capital gains has been withdrawn.

"India is in a better position," Sitharaman said.

Sitharaman said the situation global trade was volatile while emphasising that reforms was a continues endeavour of the government.

"I had consultation with industry representatives, India's position is in a comfortable zone," she added. The government is responsive to the situation the ground, the finance minister assured the nation.

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Sitharaman said the situation global trade was volatile while emphasising that reforms was a continues endeavour of the government.