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Corporate Tax Cut: Big Relief To India Inc, Slices Rate To 22% From 30%

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  • Corporate Tax Cut: Big Relief To India Inc, Slices Rate To 22% From 30%

    Finance Minister Nirmala Sitharaman Friday proposed to slash the corporate tax rates for domestic firms and new domestic manufacturing companies. The finance minister said this at a press conference in Panjim, Goa.

    Click image for larger version  Name:	Budget-2019-Finance-Minister-Nirmala-Sitharaman-Image-PTI-770x435.jpg Views:	0 Size:	45.2 KB ID:	138945




    The current corporate tax rate has been brought down to 22% from 30%. The effective tax rate will be 25.17% inclusive of all surcharges and cess for such domestic companies. For new manufacturing companies, the existing tax rate is 25% which has been brought down to 15%. The effective tax rate after surcharges and cess will be 17%.


    "In order to promote growth and investment, a new provision has been included in the Income Tax act, that allows any domestic companies an option to pay income tax at the rate of 22% without exemptions. Amendments will be made through an ordinance to the IT Act. These companies will not be required to pay MAT," said Sithraman in a press conference ahead of the GST Council meet in Goa.

    Sitharaman announced companies that pay income tax at 22%, without any exemption or incentives, will not be required to pay Minimum Alternative Tax. Making the announcement, the finance minister said the new tax rate will be applicable from the current fiscal which began on April 1.

    Sitharaman said that the revenue foregone on reduction in corporate tax and other relief measures will be Rs 1.45 lakh crore annually. This, she said, is being done to promote investment and growth.

    Sitharaman also announced that there will be no requirement to pay MAT (Minimum Alternative Tax) for those companies which pay income tax at 22% without any exemption or incentives.

    She said that the corporate and other relief measures will make 1.45 lakh crore annual reduction in revenue, but these measures are done to promote investment and growth. She added “Tax concessions will bring investments in Make in India, boost employment and economic activity, leading to more revenue,”

    The government also announced not to levy enhance surcharge introduced in Budget 2019, on the capital gains arising from the sale of any security including derivatives in hands of foreign portfolio investors.
    Last edited by Lalitsharma; 09-20-2019, 05:23 PM.

  • #2
    This is really a big relief and historic move by Modi Government. Now with this move Indian corporate sector will surely meet their commitment towards making India 'Ek Bharat-Shreshth Bharat'. This will definitely going to boost Indian Economy. You can read the detailed news here https://www.voteindia.com/news/corpo...-to-22-from-30

    It’s better to give than to receive. Especially advice

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    • #3
      It is a matter of great happiness that our government has reduced the income tax slightly
      Last edited by Gaurav Verma; 09-20-2019, 05:39 PM.

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      • #4
        Finally, the govt take the best decision for the public.

        Comment


        • #5
          That's good news for all manufacturing companies.

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          • #6
            Originally posted by Gaurav Verma View Post
            It is a matter of great happiness that our country has reduced the income tax slightly
            Yes, Big relief For Public. This reduction comes with lots of happiness.

            Comment


            • #7
              Originally posted by Nitin Kumar View Post
              That's good news for all manufacturing companies.
              Of course Nitin. This is beneficial for each and every person in the country.

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              • #8
                Originally posted by Vikesh View Post
                Finally, the govt take the best decision for the public.
                The public will get a relax when the GST tax and inflation that is going on will slowly become less..

                Comment


                • #9
                  Originally posted by Gaurav Verma View Post

                  The public will get a relax when the GST tax and inflation that is going on will slowly become less..
                  Yes

                  Comment


                  • #10
                    Originally posted by Lalitsharma View Post

                    Of course Nitin. This is beneficial for each and every person in the country.
                    yes, Now we can say this "DESH BADAL RAHA HAI"

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                    • #11
                      Originally posted by Gaurav Verma View Post

                      The public will get a relax when the GST tax and inflation that is going on will slowly become less..
                      This decision show their benefit slowly- slowly.

                      Comment


                      • #12
                        Originally posted by Nitin Kumar View Post
                        That's good news for all manufacturing companies.
                        This is not only for the manufacturing company this is same for all.

                        Comment


                        • #13
                          Originally posted by Vikesh View Post

                          This is not only for the manufacturing company this is same for all.
                          It's a big relief.
                          Last edited by Nitin Kumar; 09-23-2019, 05:04 PM.

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                          • #14
                            The revenue loss due to the rate cuts is Rs 1.45 lakh crore, which is 0.8 percent of the GDP, and therefore, would breach the government's fiscal deficit target of 3.3 percent.

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                            • #15
                              Sithraman in a press conference ahead of the GST Council meet in Goa.

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