In an effort to give relief to India Inc and large investors, the Finance Minister Arun Jaitley has said that higher tax norms on redemption in debt mutual fund will be applicable from July 11.

He was replying to debate on Finance Bill 2014 which was tabled along with Budget on July 10. He said that the rate of capital gain tax and period of short term were revised upwards. It was also said that new norms will come into effect from April 1. The industry termed this as retrospective and wanted review.

He also announced giving discretion to the Central Board of Direct Taxes (CBDT) in providing relief in penalty on late filing of income tax returns. However, he said that rate of penalty will be the same. Currently, late filers have to pay penalty at the rate of per day which in turn become too heavy in case return is filed a year after the due date.

The Minister also moved amendments related with expanding scope for settlement commission and norms for transfer pricing.

He also made it clear that this Government does not believe in high tax as such trends lower economic activities and in turn affect job creation. "People buy products and not taxes," he said.