The government hopes the new measures will improve the sentiment leading to higher private investment.
Highlights of the package:
- Enhanced surcharge levied on LTCG and STCG withdrawn
- Section 56-2B of I-T tax will not applicable to a registered startups
- A dedicated cell will be set up at CBDT to address the tax problems of startups
- Startups can approach the cell for quick resolution of any tax issue
- Rs 70,000 crore to be released upfront to PSBs for additional credit facilities
- Govt to take steps for launch of credit default swap funds
- Depository receipt scheme 2014 to be operationalised by Sebi
- Will work with the RBI to make bond market conducive to investors
- Fin Min-RBI working to bring offshore rupee market to domestic market
- Establish credit enhancement for infrastructure and housing projects
- Liquidity support to HFCs increased to Rs 30,000 crore
To Boost Consumption
- NBFCs can use aadhar-enabled KYC for onboarding customers
- More credit support to purchase of vehicles, houses, consumer goods
- NBFCs are receiving credit from banks and they have started fresh lending to customer
- PSB-NBFC synergy to be facilitated to reach last-mile customers
- NHBs to give Rs 20,000 extra liquidity to HFCs
MSMEs and GST ISSUEs
- All pending GST refunds to MSMEs will be sorted out within 30 days
- All future GST refund issues will be sorted out within 60 days
- Pending GST refunds to be paid in 30 days
- Banks to issue One-time settlement plans for MSMEs
- Future GST refund matters will be sorted in 60 days
Measures for Auto Sector
- BS-IV vehicles purchased up to March 31, 2020, will all remain operational for their entire period of registration
- Revision of one-time registration fee deferred till June 2020
- Additional 15{500813024f95d470e7cafb3286ca9b91f242a317be9a2aa6f1d2da9f36a6fda7} depreciation to be allowed on any vehicles acquired from now till March 2020, raising it to 30{500813024f95d470e7cafb3286ca9b91f242a317be9a2aa6f1d2da9f36a6fda7} in total
- Both EVs and ICVs will continued to be registered
- To boost demand for cars, govt to lift ban on purchase of new vehicles by govt department to replace old vehicles
- Govt to consider measures, including a scrappage policy, to boost demand
Banking
- Another Rs 5 lakh crore will be released in a phased manner
- Banks decided to pass on any MCLR rate cut in full
- Banks to launch repo-linked loan products
- Banks to issue improved, transparent processes for one-time loan settlements
- Banks to launch check book approach for one-time loan settlement of MSMEs
- Working capital loans for industry going to be cheaper
- Aversion to risk taking at banks to be addressed
- IBCs at banks to classify cases for vigilance and non-vigilance to ensure no harassment of bankers making honest decisions
Measures on Taxation Front
- Faceless tax scrutiny from Vijay Dashami
- Pre-filing of income-tax to become a reality soon
- Reduction of GST returns and simplified forms soon and refund process is getting automatic
- Random tax assessment will happen only in certain cases
- Physical tax assessment will happen only in random cases
- Risk-based approach is taken in dealing with tax payers
- Over 1,400 cases for corporate offences withdrawn
- Govt does want to pursue anything in terms of prosecution
- CSR violations will not be treated as criminal offence, instead they will be treated as civil violations civil matter
- Issue of I-T orders, notices, summons etc now shall go through a centralised system from Oct 1, 2019
- Issue of all I-T orders, notices, summons etc now shall go through a centralised system from Oct 1, 2019
- Any notice that does not go through the central system will not be legal
- All old I-T notices to be cleared by Oct 1, 2019, and if required will be reissued through the central system
- No officer will be acting on them independently
- No tax officer will be acting on them independently
- No assesses will have do anything with a notice after s/he had replied
