Finance Minister, Nirmala Sitharaman today announced a host of measures to boost the economy and capital markets.
Among these were the widely anticipated tax surcharge on the super rich, which became applicable to Foreign Portfolio Investors, registered as trusts. It maybe recalled the Finance Minister, Nirmala Sitharaman had recommended a tax surcharge on the super rich, which became automatically applicable o Foreign Portfolio Investors registered as trusts.
Today, this surcharge was withdrawn, which is likely to lift market sentiments on Monday. Central system for income tax
Central system for tax notices
The Finance Minister today said that a Central System for Tax Notices would be effective from Oct. 1, 2019. Issue of IT orders, notices, summons, letters etc. shall now go through a centralised computer system. It will contain computer generated document identification number. "If there is a notice being issued at the ground level and some amount is claimed by the assessee, that cannot happen without centralised approval," Sitharaman said.
Stimulus measures were long due, given the poor health of the economy. GDP Data which will be announced next week may show India's gross domestic product expanded to just 5.5% in the quarter ended June, slower than the 5.8% pace seen in the previous three months. Weakening growth numbers won't come as a surprise. Consumer are increasingly spending less from autos to biscuits and unemployment is causing further stress.