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Will wait for Monday to see market reaction: Nirmala Sitharaman

In a special trading session on Saturday, Sensex logged its biggest single-day decline in more than three years.

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Last Updated: Feb 01, 2020, 08.19 PM IST
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Nirmala Sitharaman said that paying taxes is not a punishment, if taxes are reasonable.
Mumbai: Finance Minister Nirmala Sithamraman said she would wait for the stock market reaction on Monday to see the full impact of the Union Budget presented on Saturday.

“I won’t conclude anything out of today’s market reaction. I will wait for Monday to see stock market reaction,” she said in an interview to ET NOW.

In a special trading session on Saturday, Sensex logged its biggest single-day decline in more than three years, as it nosedived nearly 1,000 points after market participants gave a big thumbs down to Sitharaman’s Budget for 2020-21.

Investors lost Rs 3.54 lakh crore as total market capitalisation of BSE-listed firms came down to Rs 152.97 lakh crore from Rs 156.50 lakh crore on Friday.

Also, the budget tried to rope in current non-resident Indians (NRIs) in the tax net on the domestic front. Firstly, to be categorized a non-resident, an Indian citizen now has to stay abroad for 240 days, against 182 previously.

The second rule is more intense and states that a non-resident Indian, who is not taxed in the foreign country, will become taxable in India.

“It is more a question of recognising that here is an area where for want of clarity, you are losing out on a lot of people who are neither paying (tax) here, nor paying elsewhere,” FM said, explaining her stance.

“If the rates are unfavorable and they are going out, you can blame me. I am changing the rates to favorable rates; I would rather have them come,” she added.

She asserted that paying taxes is not punishment, if taxes are reasonable.

“If I am bringing down (tax) to reasonable rates, wouldn’t you want to give that money to building India?,” she questioned.

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