Addressing her fourth press conference to revive the economy, FM has slashed the Corporate tax rates to 22% for domestic companies and 15% for new domestic manufacturing companies and other fiscal reliefs. , the cut in the corporate tax rate for domestic companies and new domestic manufacturing companies..
Finance Minister Nirmala Sitharaman addressed a press conference in Panaji, Goa. The Finance Minister and several State Finance Ministers have gathered in Panaji to take part in the Goods and Services Tax Council Meet.
While a separate press conference will be held after the GST meet, this press conference is about enhancing domestic manufacturing and Make in India scheme. Nirmala Sitharaman brings early Diwali for India Inc: Corporate tax slashed to 25.17% for domestic cos and the FM exempts cos that announced a buyback before July 5 from buyback tax.
The current effective tax rate for companies is 30 per cent. That rate is now 22 per cent. For new manufacturing companies the tax rate was 25 per cent. That has been brought down to 15, says Revenue Secretary Ajay Bhushan Pandey
There will be no sunset clause for the tax benefit to new manufacturing companies of 15 per cent. The effective rate was 34.9 per cent taking all surcharges into account, he says. For new manufacturing companies, the effective rate with surcharges was 29.1 per cent. Now, the basic rate is 15 per cent, and effectively a company will pay only around 17 per cent.