TNPSC Thervupettagam

Tax Reduction for Corporates

September 21 , 2019 24 days 139 0
  • Finance Minister Nirmala Sitharaman announced big cuts in corporate tax rates.
  • She has announced a 1.45 lakh crore stimulus aimed at reviving private investment and lifting growth from a six-year low.

Type of Company

Rate

Basic corporate rate tax for domestic companies that don't avail any exemption/incentive.

Reduced to 22% from 30%.

Effective Tax Rate: 25.17%

Domestic companies incorporated on or after 1st October 2019 making fresh investment in manufacturing.

Reduced to 15% from 25%

  • Minimum Alternate Tax or MAT reduced to 15% from 18%.
  • Surcharge on Capital Gains is withdrawn.
  • Total revenue foregone for the reduction in corporate tax rate and other relief are estimated to be at 1.45 lakh crore rupees.

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