Finance Minister Nirmala Sitharaman met the media before the GST Council meeting to be held in Goa. During this, he announced the reduction of corporate tax, giving relief to the company and the businessmen. Nirmala Sitharaman said that the tax reduction ordinance has passed.
-Nirmala Sitharaman said that a new provision has been added to the IT Act to encourage Make in India, which will ensure that any new domestic company which is formed on or after 1 October 2019 and which can be invested fresh If it is, she will pay income tax at the rate of 15 percent.
– Tax will be reduced for manufacturing companies also
– Income tax will be 22% without any exemption
– After this announcement, the government will have a revenue loss of 1.45 lakh crores
– Surcharge has been removed from equity capital gains
– There will be no increased tax of 20% on share buyback.
With this, MAT i.e. minimum alternative tax has been abolished. Actually, this tax is levied on companies that make a profit. But due to concessions, the tax liability on them is less. MAT is applicable under section 115JB of Income Tax Act.
After this announcement by Nirmala Sitharaman, the stock market saw a big boom. During the press conference, the Sensex gained 900 points, while the Nifty also registered a gain of 250 points. If the SENSEX was seen trading beyond 37 thousand, then the Nifty touched the level of 11 thousand. All 30 stocks of Sensex gained momentum. This is the first time after the general budget when the market saw a hold during business. Apart from this, the rupee saw a rise of more than 60 paise and it reached the level of 70.68 rupees against the dollar.
Let us explain you that even after the meeting of the GST Council, there is a press conference of the Finance Minister.
Interacted with the Media on Thursday
On Thursday also, Finance Minister Nirmala Sitharaman spoke to the media. During this, he said that no MSME in crisis will be declared NPA till 31 March 2020. The finance minister said that banks will set up camps for NBFCs and retail borrowers in 200 districts between October 3 and 7 with the intention of giving loans. The government has named this campaign Bank Loan Fair. MPs in the districts where this loan fair will be organized will also take part in the campaign to make this program successful.
Let us tell you that in the last one month, the government has made several big announcements to overcome the economic slowdown. On August 23, the government withdrew the surcharge imposed on foreign portfolio and domestic investors, while on August 30, it was announced to form 4 big state-owned banks after merging 10 state-owned banks. Similarly, on September 14, it was said to provide packages and concessions to boost the export and real estate sector.
GST Council meeting sometime
The 37th meeting of the GST Council is being held in Goa. In the agenda of this meeting, a change has been made in the GST rate of automobile, biscuits, matches, outdoor catering segment. However, the hope of getting relief from them is very less. Please tell here that the auto industry has been demanding to reduce the GST on cars from 18 per cent to 18 per cent for a long time. But the fitment committee of the council has rejected the demand for auto sector. The committee believes that the rate cut in the auto sector will affect the GST collection. Because GST collection of 50 to 60 thousand crore rupees annually from this sector.
