India to curb 'tax harassment', rolls back surchage on foreign investors

India, Sitharaman, budget, tax scrutiny, fpi rolled back, tax surcharge

New Delhi - Wealth creators will be honoured and respected.


Published: Fri 23 Aug 2019, 4:36 PM

Last updated: Sat 24 Aug 2019, 1:48 AM

Amidst concerns of rising harassment of corporates by tax officials and authorities, Finance Minister on Friday said that the government would take measures to curb such instances, including the introduction of "faceless" tax scrutiny from the upcoming "Vijaya Dashami".
She also said that tax notices and summons without a computer generated unique ID number would not be valid. This measure would help in curbing the unauthorised tax summons.
On violation of corporate social responsibility norms, the Minister said that such violations would not be treated as criminal offences.
Prosecution will be replaced with a more humane approach. Wealth creators will be honoured and respected.

Controversial FPI levy rolled back

Sitharaman also announced the roll back of the controversial tax surcharge on the Foreign Portfolio Investment (FPIs) announced in the Budget last month.

"The enhanced surcharge levied by Finance Act, 2019 on long and short term capital gains tax is being withdrawn," Sitharaman said in a special media briefing here.

The rollback comes after Indian capital markets witnessed massive outflow of foreign funds in the month of July. Since the Budget, the benchmark index, Sensex had fallen over 3,000 points after it touched a life-time high of 40,000.

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