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Friday, September 20, 2019

Finance Minister Nirmala Sitharaman announces corporate tax rate cut Friday Sep 20,2019



In a bold move to reverse the economic downturn and make India an attractive investment destination, Finance Minister Nirmala Sitharaman on Friday Sep 20,2019 slashed corporate tax rates worth 1.45 trillion paid by domestic manufacturers, making the country one of the lowest tax regimes in Asia.





Manufacturing companies not availing of tax sops can now opt for a 22% corporate tax rate, while new manufacturing companies that register and start production between 1 October and March 2023 can avail an even lower tax rate of 15%.






At present, business income is taxed at 30%, exclusive of cess and surcharge, other than in the case of companies with sales of up to 400 crore and new manufacturing companies which are taxed at 25%.

 Now, the effective tax rate, including cess and surcharges, for the existing companies comes down from 34.94% to 25.17%, while for new companies, it falls from 29.12% to 17.01%. Sitharaman also announced a reduction in the rate of minimum alternate tax (MAT) from 18.5% to 15%


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