The Union Finance and Corporate Affairs Minister, Smt. Nirmala Sitharaman, has recently presented certain measures, which are proposed to be taken up by the Government of India to improve the Indian economy, on 23-08-2019.
The highlights of those measures are listed below:
Simplification of forms for filing income tax (IT) returns, goods and services tax (GST) returns,
Simplified system of GST refunds,
Digital issue of notices, summons, orders etc by certain IT authorities from 01-10-2019 through centralized computer system only and fast track disposal of the same within three months from the date of reply.
Self-certification by start-ups with respect to 6 labour laws,
Proposed set up of special cell in the Central Board of Direct Taxes (CBDT) to address IT problems faced by start-ups
Single consent to establish factory and single air and water clearance for micro, small and medium enterprises (MSMEs),
Stronger Insolvency and Bankruptcy Code (IBC) framework supporting MSMEs and home buyers,
Simplified process of GST refunds due to MSMEs in future, i.e. refunds to be made within 60 days from the date of application
Name reservation and incorporation of a company to be done within one day and simplified forms of incorporation,
Simpler procedure of approvals for mergers and acquisitions,
Corporate and social responsibility (CSR) violations to be treated only as a civil liability rather than a criminal offence
Banks and finance companies-
Additional lending up to Rs. 5 Lakh Crores to public sector banks (PSBs), that would in turn benefit corporates, retail borrowers, MSMEs, small traders, etc,
Additional credit of Rs. 30,000 Crore to housing finance companies (HFCs) by National Housing Bank (NHB), which would in turn help customers to purchase houses, vehicles, consumption goods, etc,
Reduced equated monthly instalments (EMI) for housing loans, vehicle and other retail loans,
Mandated return of documents taken against loan by PSBs within 15 days of loan closure,
Increase in transparency by way of online tracking of loan applications by customers/borrowers,
Proposed establishment of organization to improve access to long term finance for infrastructure and housing projects.
Access to global markets-
Increased access of Indian companies to foreign funds in global markets through trading of American Depository Receipt (ADR)/Global Depository Receipt (GDR).
Thus, it is anticipated that there would soon be significant reforms introduced in form of amendments to existing laws, bye-laws, rules and regulations, etc that would help to improve the sectors involving infrastructure, banking and financing, start-ups, MSMEs, small traders, individuals, etc and in turn, boost the Indian economy.
Senior Legal Associate
The Indian Lawyer