Income Tax relief for domestic companies
21/09/2019, SPECIAL CORRESPONDENT,PANAJI
Finance Minister Nirmala Sitharaman said here on Friday that a domestic company would now be allowed to pay income tax at the rate of 22% (from 30%), subject to the condition that it won’t avail any other (tax) incentives or exemptions.
“There will be no Minimum Alternate Tax levied on them and the effective tax rate for such firms will be 25.17%, including all surcharges and cess,” the Minister said.
To spur fresh investments and boost Make in India efforts, for new manufacturing companies incorporated after October 1, 2019, and commencing production by March 31, 2023, the income tax rate will be 15%, from 25% at present.
The effective tax rate for these companies will be 17.01%, compared to 29.1% now. These firms will also be exempt from Minimum Alternate Tax (MAT).
“In order to provide relief to firms who want to continue with the existing regime of exemptions, we are giving some MAT relief — the tax rate has been reduced from 18.5% to 15%,” the Minister said.
These tax cuts include a reduction in the surcharge on corporate income tax from 12% to 10%, pointed out Revenue Secretary Ajay Bhushan Pandey.
The President has promulgated the Taxation Laws (Amendment) Ordinance 2019 to bring into effect the slew of corporate tax rate cuts announced on Friday.
21/09/2019, SPECIAL CORRESPONDENT,PANAJI
Finance Minister Nirmala Sitharaman said here on Friday that a domestic company would now be allowed to pay income tax at the rate of 22% (from 30%), subject to the condition that it won’t avail any other (tax) incentives or exemptions.
“There will be no Minimum Alternate Tax levied on them and the effective tax rate for such firms will be 25.17%, including all surcharges and cess,” the Minister said.
To spur fresh investments and boost Make in India efforts, for new manufacturing companies incorporated after October 1, 2019, and commencing production by March 31, 2023, the income tax rate will be 15%, from 25% at present.
The effective tax rate for these companies will be 17.01%, compared to 29.1% now. These firms will also be exempt from Minimum Alternate Tax (MAT).
“In order to provide relief to firms who want to continue with the existing regime of exemptions, we are giving some MAT relief — the tax rate has been reduced from 18.5% to 15%,” the Minister said.
These tax cuts include a reduction in the surcharge on corporate income tax from 12% to 10%, pointed out Revenue Secretary Ajay Bhushan Pandey.
The President has promulgated the Taxation Laws (Amendment) Ordinance 2019 to bring into effect the slew of corporate tax rate cuts announced on Friday.
No comments:
Post a Comment