Greetings! We are pleased to send you a copy of THE NEWSFLASH on “Corporate Tax Rate Cut- Fine Print Analysis” As a major step to revive India Inc. and to give impetus to the growth rate, the Finance Minister has announced a Corporate Tax rate cut along with several other fiscal benefits.
- Domestic companies have been given an option to pay income tax at the rate of 22%, provided, they do not avail any incentive/exemption offered under the Income Tax Act.
- New manufacturing domestic companies have been given an option to pay tax at the rate of 15 per cent, if they forego all incentives/exemptions available to them under the Act and commence commercial production on or before 31st March, 2023.
- Domestic companies, whether manufacturing units or otherwise, which have not opted for concessional tax rate can continue to avail exemptions and incentives offered under the Income Tax Act, have to pay MAT at a reduced rate of 15 per cent (existing 18.5%).
- Companies that have made public announcement of buy-back before 5th July, 2019 have been exempted from the payment of buy-back tax.
- Enhanced surcharge shall not be apply on capital gains arising on sale of equity share in a company or a unit of an equity oriented fund or a unit of a business trust liable for securities transaction tax, in the hands of an individual, HUF, AOP, BOI and AJP
- Enhanced surcharge shall also not be applicable to capital gains arising on sale of any security including derivatives, in the hands of FPIs.