- Surcharge on domestic investors in equity markets also withdrawn
- Public sector banks to get ₹70,000 crore recapitalisation immediately
Finance Minister Nirmala Sitharaman today announced measures to revive economic growth and markets. Government will withdraw enhanced surcharge on long-term/short-term capital gains arising from transfer of equity shares/units for foreign and domestic investors, the finance minister said. She also said that GST regime will be simplified further and the government will release ₹70,000 crore capital upfront to public sector banks to boost credit to different sectors of the economy.
The higher tax applied to individuals and FPIs earning more than ₹2 crore which led to a sharp fall of Indian equity markets. FPIs have pulled out over $1 billion in August from the Indian markets.
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Here are the key highlights of what the finance minister said:
Govt withdraws enhanced surcharge on long-term/short-term capital gains arising from transfer of equity shares/units
Govt withdraws enhanced tax surcharge on FPIs
Withdrawal of angel tax provisions for start-ups and their investors
Public sector banks to get ₹70,000 crore recapitalisation immediately. Additional lending and liquidity to the tune of ₹5 lakh crores can be made available by providing this capital for the PSBs
Source: Livemint
