FM Nirmala Sitharaman announces corporate tax rate slash upto 25.17%

SUKIRTI MISHRA 20/09/2019 11:27 AM


RBI Governor hails tax measures announced by Sitharaman

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The BSE Sensex surged over 800 points after FM proposed to cut corporate tax

New Delhi. Union Finance Minister Nirmala Sitharaman has announced several tax exemtions ahead of the GST Council Meet on Friday. Amid escalating concerns over the economic slowdown, the revenue related measures will pump prime the economy. Sitharaman has proposed the tax for the domestic companies and new local manufacturing companies to be slashed through an ordinance. 

Providing a major fiscal booster, the government has reduced the corporate tax to 25.17% including the surcharge and cess for domestic companies. The Finance Minister announced that the new tax rate will be applicable from the current fiscal which began on April 1. "We today propose to slash the corporate tax rates for domestic companies and for new domestic manufacturing companies," said the FM. 
In order to promote revenue and investment, the revenue foregone on reduction in corporate tax and other relief measures will be Rs 1.45 lakh crore annually. She revealed, the companies opting for 22% income tax slab would not have to pay minimum alternative tax (MAT). The changes in the Income Tax Act and Finance Act will become effective through an ordinance. 

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