The Finance (No. 2) Bill, was passed in the 17th Lok Sabha 2019. Finance Minister Sitharaman said that the tax proposals in the Finance Bill 2019 aim at improving the ease of living and reducing the pain of the citizens. While replying to a discussion on the Finance Bill, Sitharaman’s budget proposals promote ‘Make in India’ and ‘Digital Payment’ programme.

The minister, however, did not relax the tax proposals with regards to Foreign Portfolio Investors, TDS on cash withdrawal above Rs 1 crore from banks and 10 percent hike in customs duty on newsprint as was being demanded by the opposition.

With regard to the simplification of tax laws, the ministry has set up a task force to finalise a new Direct Tax Code (DTC). The Finance Minister, however, did not say anything on the proposal. Several members have asked the government to reduce the hikes in customs duty on newsprint saying it would badly hurt the small and medium newspapers.

Referring to the imposition of 1 percent TDS on cash withdrawal beyond Rs 1 crore, the minister said the tax could be adjusted against the liability of the assesses and hence there will be no additional burden on them. On the proposal to hike tax liability on individuals earning more than Rs 2 crore, she said it will not impact FPIs provided as they organised themselves as a company.