Surcharge on Foreign Portfolio Withdrawn
Finance Minister Nirmala Sitharaman on Friday announced series of measures to boost private sector Industry and withdrew surcharge on Foreign Portfolio after the statement of PM Modi that govt. respects all wealth creators.
To boost investment in the Capital Market, "It has been decided to withdraw surcharge levied by the Finance Act(No 2)on long and short term capital gains by the transfer of equity share" added Finance Minister
With concern on private sector the govt. was also in favor of penalties rather than prosecution and this will result in the violation of CSR rule which had earlier imposed jail term of up to 3 years with fine as well. And with the roll back is now a relief to the sectors.
The government is now deciding Rs 70,000/- crore of capital infusion in public sector that was announced in the budget which helped banks to disburse credit. This 70,000/- in turn will lead to Rs 5 Lakh crore of fresh liquidity that can be given as loan as stated by the government.