Arun Jaitley announces some concessions, tax on MF from July 10

New Delhi: The government announced some concessions for mutual fund industry and income   tax payers, while committing to low tax regime to promote   industrial activity to generate jobs and create more resources  to undertake social welfare activities.  

Announcing the concessions in the Lok Sabha, Finance  Minister Arun Jaitley said high tax rate of 20 per cent on the debt mutual fund would apply from July 10, the date of the   presentation of the budget, and not from April 1, 2014 as proposed earlier.   In this regard, the Minister said he was accepting a suggestion made by Congress leader Jyotiraditya Scindia and some other members as it amounted to leving tax with retrospective effect for about three months.  

The Lok Sabha later passed the Finance Bill, 2014 completing the budgetary exercise in the Lower House. In order to provide some relief to the tax payers filing returns late and paying penalty on daily basis, the   Minister said that CBDT will be empowered to exercise  discretion in this regard. He also expanded the scope of  Settlement Commission to include cases where proceedings   have already been initiated.  

The Minister rebuffed his own party MP Nishikant Dubey for saying that "we will not be able to bring back black money from Switzerland in our lifetime."  Jaitley said "we pray for his long life but we will  not have to wait for long (to get back black money from   abroad)."  

Justifying his emphasis on having low tax regime and  smooth tax system, the Minister said the government wants to revive the investor sentiment "which has been disturbed" and   mop up additional resources to fund social welfare activities.  He said low tax regime will make India goods competitive and cited China as an example in this regard.