In a major fiscal booster, the government on Friday slashed corporate tax to 22 percent without exemptions or incentives for the domestic and new manufacturing companies.
Companies opting for 22 percent income tax slab won't have to pay minimum alternative tax and after considering surcharges and cess, the effective tax rate will be 25.17 percent, said Finance Minister Nirmala Sitharaman.
This compares to 30 percent corporate tax rate currently, and an effective tax rate of 34.94 percent. Making the announcement, Sitharaman said the new tax rate will be applicable from the current fiscal which began on 1 April. She said 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. Meanwhile, domestic equity benchmark BSE Sensex skyrocketed over 1,600 points in the morning session on Friday after Sitharaman announced a slew of measures to revive the ailing economy. The 30-share index zoomed 1608.91 points, or 4.46 percent, to 37,702.40 at 11.30 am, while the broader Nifty rose 474 points, or 4.43 percent, to 11,179. The rupee extended the morning gains and rallied 66 paise to 70.68 against the US dollar soon after the announcement.
https://www.firstpost.com/business/nirmala-sitharaman-announces-new-corporate-tax-rate-today-news-govt-slashes-corporate-tax-to-22-for-domestic-companies-new-rates-to-be-applicable-from-1-april-2019-7373801.html
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In a major fiscal booster, the government on Friday slashed corporate tax to 22 percent without exemptions or incentives for the domestic and new manufacturing companies. Companies opting for 22 percent income tax slab won't have to pay minimum alternative tax and after considering surcharges and cess, the effective tax rate will be 25.17 percent, said Finance Minister Nirmala Sitharaman. This compares to 30 percent corporate tax rate currently, and an effective tax rate of 34.94 percent. Making the announcement, Sitharaman said the new tax rate will be applicable from the current fiscal which began on 1 April. She said 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. Meanwhile, domestic equity benchmark BSE Sensex skyrocketed over 1,600 points in the morning session on Friday after Sitharaman announced a slew of measures to revive the ailing economy. The 30-share index zoomed 1608.91 points, or 4.46 percent, to 37,702.40 at 11.30 am, while the broader Nifty rose 474 points, or 4.43 percent, to 11,179. The rupee extended the morning gains and rallied 66 paise to 70.68 against the US dollar soon after the announcement. https://www.firstpost.com/business/nirmala-sitharaman-announces-new-corporate-tax-rate-today-news-govt-slashes-corporate-tax-to-22-for-domestic-companies-new-rates-to-be-applicable-from-1-april-2019-7373801.html