The sharp fall in the stock market was not because of the Budget proposal to levy long-term capital gains tax, but due to global factors , Finance Secretary Hasmukh Adhia said.

He was addressing CII’s post-Budget conference here on Monday.

“Stock markets across the world is on a tailspin due to the global market forces,” he said. On long-term capital gains tax co-existing with securities transactions tax (STT), Adhia said STT is a small amount and does not form a big component of the overall cost of holding the securities. He further said that nearly 99 per cent of the companies would now pay 25 per cent tax. “This has facilitates investment in new manufacturing units and Foreign Direct Investment,” he said.

Neeraj Kumar Gupta, Secretary, Department of Investment and Public Asset Management, stressed that the Centre's disinvesment roadmap for 2018-19 is on track and nearly two dozen companies are being privatised.

Addressing FICCI, Gupta said the government plans to transfer or make joint ventures 14 properties of ITDC Ltd. “Joint leasing for two big properties of ITDC will be starting soon,” he said.

e-assessment scheme

The proposed e-assesment scheme, which was announced in the Budget will cut down on harassment of taxpayers by officials. While the contours of the scheme are still being worked out, Rashmi Ranjan Das, Joint Secretary, Central Board of Direct Taxes, said it would include a team-based assessment with no physical contact between the asseessee and the officer.

“The assessment will not be done by a single officer,” he said, adding that personal hearings would be conducted through video conferencing.

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