<p>Giving in to the demands of overseas investors, Finance Minister Nirmala Sitharaman on Friday announced rollback of enhanced surcharge on foreign portfolio investors levied in the Budget.<br /><br /><strong>LIVE | <a href="https://www.deccanherald.com/liveblog/live-nirmala-sitharaman-withdraws-super-rich-tax-and-angel-tax-756436.html" target="_blank">Nirmala Sitharaman withdraws Super-rich tax and Angel tax</a></strong></p>.<p>Surcharge on long and short term capital gains arising from transfer of equity shares has been withdrawn, she said.</p>.<p>"The pre-Budget position is restored," the minister said.</p>.<p>It is being done to encourage investment in the capital market, the finance minister said.</p>.<p>The decision taken in the Budget to levy enhanced surcharge had spooked the stock markets.</p>.<p>Following the increase in surcharge in the Budget, the effective income tax rate for individuals with taxable income of Rs 2-5 crore went up to 39 per cent from 35.88 per cent and for those above Rs 5 crore to 42.7 per cent.</p>.<p>Earlier this month, capital market participants and foreign institutional investors presented a charter of demands to Sitharaman, which included rollback of surcharge on FPIs and review of dividend distribution tax.</p>.<p>Sitharaman further said that to mitigate genuine difficulties of startups and their investors, it has been decided to withdraw angel tax provisions for them.</p>.<p>A dedicated cell under a member of CBDT too will be set up for addressing the problems of startups.</p>
<p>Giving in to the demands of overseas investors, Finance Minister Nirmala Sitharaman on Friday announced rollback of enhanced surcharge on foreign portfolio investors levied in the Budget.<br /><br /><strong>LIVE | <a href="https://www.deccanherald.com/liveblog/live-nirmala-sitharaman-withdraws-super-rich-tax-and-angel-tax-756436.html" target="_blank">Nirmala Sitharaman withdraws Super-rich tax and Angel tax</a></strong></p>.<p>Surcharge on long and short term capital gains arising from transfer of equity shares has been withdrawn, she said.</p>.<p>"The pre-Budget position is restored," the minister said.</p>.<p>It is being done to encourage investment in the capital market, the finance minister said.</p>.<p>The decision taken in the Budget to levy enhanced surcharge had spooked the stock markets.</p>.<p>Following the increase in surcharge in the Budget, the effective income tax rate for individuals with taxable income of Rs 2-5 crore went up to 39 per cent from 35.88 per cent and for those above Rs 5 crore to 42.7 per cent.</p>.<p>Earlier this month, capital market participants and foreign institutional investors presented a charter of demands to Sitharaman, which included rollback of surcharge on FPIs and review of dividend distribution tax.</p>.<p>Sitharaman further said that to mitigate genuine difficulties of startups and their investors, it has been decided to withdraw angel tax provisions for them.</p>.<p>A dedicated cell under a member of CBDT too will be set up for addressing the problems of startups.</p>