The government on Friday cut corporate tax rate for companies that do not avail of any tax incentive to 22%. Effective corporate tax rate after surcharge will be 25.17%.
New manufacturing companies will have to pay an even lower corporate tax rate of 15%.
Finance minister Nirmala Sitharaman told reporters here that an Ordinance has been cleared earlier in the day giving effect to the amendments to the Income Tax Act. The tax relief is part of steps the government has been announcing after consultations with the industry, on a weekly basis, to deal with the slowdown, the minister said.
You might also be interested to read: First Step Towards Realising Make In India’: Experts Hail FM’s Measures
Sitharaman said the government was aware of the consequences of the revenue outgo that would happen due to the tax measures announced today, adding that the Centre will lose an estimated ₹1.45 trillion.
India will cut corporate tax rate for domestic businesses to 25.17%, including surcharges, and will be applicable to companies not availing incentives. The current corporate tax rate is 30%.
Source: livemint
