Newdelhi:18/7/19:The Finance (No.2) Bill, 2019 that gives effect to the proposals of the Central Government for the year 2019-2020 was passed in Lok Sabha today. Explaining the proposed amendments in the taxation Acts, Finance Minister Nirmala Sitharaman pointed out that the said amendments will promote make in India and Start ups.
It will bring clarity in Central Road and Infrastructure Fund and reduce Corporate tax from 30 to 25 percent for companies with a turnover of up to 400 crore rupees. This decision, she added, will benefit about 99.3% of the 1.5 million companies in the country. The minister clarified that the amendment to the Reserve Bank of India Act is to strengthen its regulatory powers with regard to Non Banking Financial Companies.
After the amendment, the RBI can now take over the regulation of NBFCs, supersede its Board, remove auditors and can even split them for the benefit of people. She also clarified that six out of the eight amendments being proposed in the Prevention of Money Laundering Act, 2002, are explanatory clauses that is an attempt to iron out ambiguities and address grey areas.
Speaking about the amendments that will encourage low cost electronic payment systems in the country, Mrs. Sitharaman said this is keeping in mind the government’s goal to digitise the country. On the incentives being provided for Electrical Vehicles, she said that the deduction on the loan interest is to encourage buyers, keeping in mind the state of the environment. The start ups will now be able to carry forward their loses to the subsequent financial year providing them financial stability.
On a question raised about digital payments made to political parties, the Finance Minister answered that digital payments always leave a trail, right from the destination to the source, making such payments more transparent. After the passing of the Finance Bill, the Speaker extended the House business by another two hours to take up Zero hour mentions of public interest.