New Delhi, Aug 23 (Agencies): Here are a few takeaways from Sitharaman's press conference:

* In order to encourage investment in the capital market, it has been decided to withdraw the enhanced surcharged levied on long/short term capital gains arising from transfer of equity shares/units. “The enhanced surcharge on FPI goes, in simple words," Sitharaman said, referring to a budget proposal pertaining to Foreign Portfolio Investors. “In other words, the pre-budget position is restored."

* CSR rule violations will only be treated as civil matter and not as criminal matter

* All tax notices to be issued from centralised system, says FM on tax reforms to end harassment of taxpayers

* Startups get relief as angel tax provisions will not be applicable on them and their investors

* Government to infuse upfront ?70,000 crore into public sector banks to enable release of ?5 lakh crore liquidity in the market

* All pending GST refunds to MSMEs till date shall be paid within 30 days and future refund matters to be sorted out within 60 days

* Govt allows additional 15% depreciation on vehicles acquired from now till March 2020: FM on measures to ease building auto inventories

* Ban on govt departments lifted for purchase of vehicles to replace old ones: FM on measures to mitigate distress in auto sector. Sitharaman also announced that government will come out with a scrappage policy for old vehicles. Faced with a massive sales downturn, India's automobile industry has been betting big on a scrappage policy to revive demand for the already dented sector. Accordingly, automobile industry's representatives have sought an 'End of Life' policy from the Central government as a measure to arrest the falling sales. The policy, if implemented, is expected to encourage customers to go in for new purchases which will be backed-up by government incentives in lieu of their old vehicles.

Government gives major boost to auto sector

New Delhi, Aug 23 (IANS) The Central government on Friday gave a major boost to the automobile industry by announcing a slew of measures to reverse slowdown denting the sector.

At present, the sector has been impacted by a consumption slowdown which is a culmination of several factors such as high GST rates, farm distress, stagnant wages and liquidity constraints.

Besides, inventory pile-up at the dealership level and stock management of unsold BS-IV vehicles have become a problem for the sector.

Finance Minister Nirmala Sitharaman allowed government departments to purchase new vehicles to replace old ones.

She further announced that all vehicles purchased till March 31, 2020 shall avail of the benefit of additional depreciation of 15 per cent. It shall increase the higher depreciation on all vehicles to 30 per cent.

Furthermore, the minister said that BS IV vehicles purchased till March 31, 2020 shall remain operational for the entire period of their registration.

Govt rolls back surcharge on FPIs to check capital outflow

With an aim to check the massive outflow of foreign portfolio investment since the Budget, the government on Friday withdrew the surcharge levied on them.

As a result, the tax incidence for foreign portfolio investors (FPIs) will come down by 4-7 per cent removing the anomaly created in the Budget. The move will also cheer domestic investors as the withdrawal would also apply to them.

The action came weeks after FPIs turned net sellers after levy of surcharge in the Union budget and are estimated to have pulled out about Rs 8,500 crore since the budget announcement.

In her maiden budget, Finance Minister Nirmala Sitharaman raised surcharge on super-rich or those having annual taxable income more than Rs 2 crore. The surcharge of 25 per cent was levied on those having taxable income between Rs 2 crore and 5 crore, and 39 per cent on those with taxable income over Rs 5 crore.

In a sort of mini Budget which included a flurry of economy revival policy measures, Finance Minister Sitharaman on Friday announced that "the enhanced surcharge from long-term and short-term capital gains on FPIs stand withdrawn."

Investors hailed the government decision with Karma Capital head Nandita Parkar who also represent industry body of FPIs (AMRI) said that the Finance Minister has done an extraordinary job and has responded decisively to their issues.

"Surcharge reversal is of course big relief for FPIs that would eliminate the need to look for any exotic solutions like restructuring or changing PAN status of SICAV type of structures. It's a bonus for domestic investors as well," Sunil Gidwani, Partner, Nangia Advisors (Andersen Global), said.

It may be noted that FPIs had done hectic lobbying to remove the surcharge with many of them pulling out their investment from the capital market.

Sitharaman noted that government will review surcharge on HNIs after 75th Independence Day of India.

Elaborating on mechanism to withdraw surcharge levy, effected through Finance bill, she said that it will be withdrawn through government orders. Revenue Secretary Ajay Bhushan Pandey said that the fiscal impact of the removal of enhanced surcharge would be to the tune of Rs 1,400 crore annually.

Terming it as a key measure to boost economy and investor sentiment, Sitharaman said that in order to encourage investment in the capital market, it has been decided to withdraw the enhanced surcharge levied by Finance Act, 2019 on long and short-term capital gains arising from transfer of equity shares referred in Sections 111A and 112A respectively.

"This is hugely positive for the market. This is something which should address the ongoing concerns as well as those structural changes that should have been brought into effect a while back. The rollback of higher surcharge on FPI as well as domestic investors is a welcome move since it was one of the factors that put a lot of dent on investors sentiment, specifically FII and FPIs," said Mustafa Nadeem, CEO, Epic Research.

Bhavin Shah, Partner & Leader, PwC India said: "FM announced removal of higher surcharge on capital gains for FPIs. Her presentation suggested amendment in respect of capital gains taxable under Sections 111A and 112A. FPIs are however taxable under a different section 115AD. Hope fine print makes amendment in correct section."

Centre to infuse Rs 70k cr upfront into PSBs

New Delhi, Aug 23 (IANS) The Central government will "upfront" infuse Rs 70,000 crore into public sector banks for extending additional lending.

At present, the economy has been impacted by a consumption slowdown which is a culmination of several factors such as high GST rates, farm distress, stagnant wages and liquidity constraints.

Besides, the stress in the NBFCs has led to a liquidity squeeze in the automobile and other type of capital goods purchases.

Finance Minister Nirmala Sitharaman said that the budgeted Rs 70,000 crore re-capitalisation of PSBs will be infused upfront so as to enable additional funding. This step is expected to allow PSBs to extend additional funding of Rs 5 lakh crore.

She further announced that PSBs have decided to launch repo-rate linked products.

PSBs have been mandated to return loan documents to customers within 15 days of their loan closure.