Corporate Taxes slashed for India Inc. - an Opinion
Corporate Taxes slashed for India Inc. – an Opinion Today, 20 th September, Finance Minister Nirmala Sitharaman announced, through a presidential ordinance, a huge reduction in income tax rate for corporates in India. The government has slashed basic corporate tax rate to 22% from 30% while for new manufacturing companies it has been cut down to 15% from 25%. Over the past few weeks, the government has been announcing a series of measures to boost growth that had fallen to six-year low of 5% in June quarter. Revenue foregone for the reduction in corporate tax rate and other relief measures announced will cost the exchequer ₹1.45 Lakh Crores per annum, projects the Ministry. A domestic company can now pay income tax at 22% p.a. if they don't seek any exemption or incentives/tax holidays as offered by the Indian income tax laws currently. The effective tax rate will however be 25.17% p.a. inclusive of all surcharges and cess for such domestic companies. Such comp...