Budget 2019-20: FY20 being the last year of the timeline set by the past Finance Minister for a progressive reduction in Corporate tax rates, it would be interesting to see whether the government keeps its promise or disappoints India Inc once again in Budget 2019.
Union Budget 2019 India: The Interim Budget FY20 brought in relief for the small and marginal taxpayers as the then acting Finance Minister announced the extension of tax rebate to include people with taxable income up to Rs 5 lakhs. Even though reduction in Corporate tax rate was a highly anticipated move, the interim budget had disappointed India Inc.
So now as the newly appointed Finance Minister invited suggestions from India Inc for Budget FY20. There is a budding hope that the Union Budget 2019 might take care of the woes of India Inc. As a result most of the recommendations received are reduction in rate of corporate tax, reduction of Minimum Alternate Tax and reduction in dividend distribution tax.
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The Finance Minister in his FY16 Budget speech had promised to reduce the basic rate of Corporate Tax from 30% to 25% progressively in 4 years. The benefit of plunge in tax rate was enjoyed by the small and medium sized companies which was incorporated gradually in 2 years. Since then all the large companies are lobbying for the rate cut.
Source: Financial Express
