GAAR amendments finalised: FinMin

Nov 18 2012, 13:39 IST
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'I have finalised the amendments to the Chapter 10A of the Income Tax Act'. (Reuters) 'I have finalised the amendments to the Chapter 10A of the Income Tax Act'. (Reuters)
Summary'I have finalised the amendments to the Chapter 10A of the Income Tax Act'

part of it is still there. We have to now get down to the detail, get each PSU, each sector, each business house why are you not investing. Invest. That is the effort," he said.

Chidambaram said no PSU will be allowed to fall short of its announced intention to invest. Performance of the CMDs will be measured on how much did he invest in terms of declared intention to invest.

"And now we are talking to individual business houses and goading them to invest. They are all sitting on piles of cash. We are also asking sectorally what is the hindrance to investment and trying to remove those hindrances or hurdles. But will have to get the investment engine going.

"It has come to life but it is still not running at full speed. Once we get the investment engine going the results will begin to happen next year. Steel, cement will be in demand and that will drawn more investment in small and medium enterprises, ancillary industries which will bring more jobs," he said.

Chidambaram said some industries like automobile and housing have perked up a bit but it was not so in the consumer durable and non-durable sectors.

"So, I hope the engine will start purring and then moving forward. And then I think the investment will pick up. Once investment picks up, I am sure we get back to high growth. It is a difficult year," he said.

Noting that the Council of Ministers and the party- government conclave were fully sensitised to the nature of the challenge, Chidambaram expressed the confidence that he will use the opportunity to sensitise the Opposition as well as Parliament.

"Nothing to be gloomy about. We are still one of the three or four large economies that are growing at a decent rate. But we will have to rev up quickly so that we get back to the high growth path," he said.

Chidambaram ruled out any fiscal measures between now and the next Budget saying anything on the tax side would come up only in the Budget.

"Anything on the fiscal side, we will come up with it only in the Budget. So, I don't plan any fiscal measure. There is no major fiscal legislative measure that is on the anvil," he said.

Elaborating on the growth prospects, Chidambaram said: "All I can say is this year we will probably hover around 5.5-5.6 per cent or may be

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