{"id":23576,"date":"2019-08-28T18:25:04","date_gmt":"2019-08-28T12:55:04","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=23576"},"modified":"2019-08-28T19:15:23","modified_gmt":"2019-08-28T13:45:23","slug":"latest-announcements-by-fm-nirmala-sitharaman","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/latest-announcements-by-fm-nirmala-sitharaman\/","title":{"rendered":"Latest Key Announcements made by FM Nirmala Sitharaman in the Press Conference"},"content":{"rendered":"

Recently, on Friday, August 23rd, 2019, the Finance Minister Nirmala Sitharaman<\/strong>[1]<\/a><\/sup> holds a press conference to announce certain measures going to be taken by the Government to give a boost to the securities market<\/a> and economy. Read Highlights Announcements by FM Nirmala Sitharaman<\/strong>.<\/p>\n\n\n\n

Key Highlights Announced by the Government<\/strong><\/h2>\n\n\n\n

Some of the key highlights announced by the Government are as follows:<\/strong><\/em><\/p>\n\n\n\n

  1. The relief to the Foreign Portfolio Investment from the\nenhanced surcharge, <\/li>
  2. A relief to the eligible start-ups and investors from angel\ntax. <\/li>
  3. De-criminalization of CSR violations.<\/li>
  4. The Finance Minister has also announced that in upcoming\ndays, two more sets of new announcements shall come up. <\/li><\/ol>\n\n\n\n

    Key Highlights Announcements by FM Nirmala Sitharaman<\/h2>\n\n\n\n

    1.Withdrawal of the provision of enhanced surcharge on FPIs in respect of Capital Gain<\/strong><\/p>\n\n\n\n

    After a clamor by the FPI on the increased surcharge, The\nFinance Minister has announced –<\/p>\n\n\n\n

    The withdrawal of provision to levy a surcharge on the tax\npayable by the FPI and Domestic investors on short-term capital gains and\nlong-term capital gains from the sale of equity shares, equity-oriented funds\nand units of business trust. <\/p>\n\n\n\n

    Where As the foreign and domestic investors shall continue to be liable to pay the increased surcharge in respect of other income, i.e., interest, dividend, etc. In other words, the enhance surcharge on domestic investors and FPIs have been rolled back and pre-budget position has been restored.<\/p>\n\n\n\n

    The decision taken by the finance minister will be applicable\nfrom the current financial year.<\/p>\n\n\n\n

    2. The provisions of Section 56(2)(vii)(b) i.e. Angel Tax shall not be applicable to the recognized start-ups<\/strong><\/p>\n\n\n\n

    The start-ups were facing difficulties for getting relief from\nthe revenue officers and they have been continuously pleading to the\nDepartment. To provide relief Finance Minister has announced the provisions\nthat the angel tax shall not apply to the recognized start-ups and the\ninvestors.<\/p>\n\n\n\n

    Applicability<\/strong> – It\nis applicable in respect of present as well as all pending proceedings as well.\n<\/p>\n\n\n\n

    NOTE:<\/strong> However, it is not clear whether the exemption from angel tax has been provided prospectively or retrospectively, which shall be clear when the Government issues the ordinance.<\/div>\n\n\n\n

    3. De-Criminalization of CSR Violations<\/strong><\/p>\n\n\n\n

    In case a company fails to comply with CSR\nrequirement, the provisions of the CSR as provided under section 135 (7) of the companies Act, 2013<\/strong> will be implied which\nprovides for –<\/p>\n\n\n\n

    Penal Provisions\n–<\/strong><\/p>\n\n\n\n