Tax experts said that the clarification has watered down the expected benefits of the government announcement and can make return-filing very complicated. One of them said that the structure is very "ridiculously worked out" as it makes things very complex.

In a bid to stabilise the faltering economy, Sitharaman had on Friday announced the removal of surcharge on capital gains on shares for both foreign and domestic investors, provided an upfront Rs 70,000-crore equity infusion into public sector banks to boost lending, and unveiled measures to push automobile sales.

The Finance Minister also announced that violation of corporate social responsibility regulations by corporates will now be taken as a civil offence and not a criminal offence. 

The Indian government on Friday announced a raft of measures, including rollback of enhanced super-rich tax on foreign and domestic equity investors, exemption of startups from 'angel tax', a package to address distress in the auto sector and upfront infusion of Rs 70,000 crore to public sector banks, in efforts to boost economic growth from a five-year low.

Finance Minister Nirmala Sitharaman addressed a press conference, where she said the government would withdraw higher taxes on foreign portfolio investors, as announced in the Budget and also withdraw the surcharge on long- and short-term capital gains.

Sitharaman, who also holds the corporate affairs ministry portfolio, flagged the issue of competition sans frontiers and at times, its adverse impact on Indian consumers.

Affordability and availability of retail finance as well as finance for dealers was a major concern for the industry and the announcement today have adequately addressed concerns on both the fronts. The release of Rs 70,000 crore for PSU banks recapitalisation and Rs 20,000 crore for National Housing Bank will give banks and NBFCs enhanced liquidity in the system. Moreover, the linking of repo rate to interest rates charged for vehicle purchase would support lowering of EMIs for auto purchases, thereby boosting demand.

The government has also decided to make necessary changes in PMLA rules and Aadhaar regulations to ease the lending process, Finance Minister Nirmala Sitharaman said. 

Sitharaman said that banks will launch repo rate and external benchmark-linked loan products that will lead to reduced easy monthly instalments for housing, vehicle and other retail loans.

The rollback comes after Indian capital markets witnessed massive outflow of foreign funds in the month of July.

Amid reports of a slowdown from various sectors, Finance Minister Nirmala Sitharam has said that India's economy is not in a recession. 

Addressing a press conference at the party headquarters, former Union Minister and senior Congress leader Manish Tewari said, "The silence of the Prime Minister and the Finance Minister is deafening." He said the country is witnessing the politics of vendetta and an unprecedented and undeclared emergency-like situation. Slamming the government, Tewari said, "The government does not have a clue about how to handle this economic crisis, which is intensifying every day in the country."

The 30-share barometer closed higher by 228.23 pts or 0.63 per cent at 36,701.16, hours ahead of a presser by Finance Minister Nirmala Sitharaman.

In her maiden Budget in July, she had cut corporate tax for companies with annual turnover of up to Rs 400 crore to 25 per cent from 30 per cent. Last year, the then Finance Minister Arun Jaitley had cut the corporate income tax rate to 25 per cent for companies with a turnover of up to Rs 250 crore. 

Sitharaman on Saturday asked the I-T Department to bridge the communication gap between tax officials and the assessees and sought a change in mindset amid allegations of "tax terrorism". 

Prime Minister Narendra Modi met Union Finance Minister Nirmala Sitharaman today amid reports of a slowdown in various sectors. PM Modi is likely to announce a series of measures to infuse more energy in the economy, news agency IANS reports.

7th Pay Commission: There's good news for the central government employees. Employees who are still waiting for the minimum pay hike beyond the 7th Pay Commission recommendations are expected to get some good news ahead of Dussehra festival.

Addressing captains of the industry at the CII national council meeting, the finance minister also said from next week she would be meeting industry people in different parts to the country over tax harassment-related issues and redress grievances on the spot.

"Mr PM, the economy has derailed and there seems to be no light at the end of the tunnel. If your incompetent FM is telling you there is light, trust me it's the train of recession coming at full throttle," he said on Twitter.

While she stressed that taxpayers should treat tax payment as a contribution towards nation-building and not as a punishment, the minister asked three investigating wings of the revenue department to share information among themselves to nab evaders.