Finance Minister Nirmala Sitharaman opened the liquidity tap for corporates on Friday by announcing a sharp tax cut and leaving more money in their hands for capacity expansion. The statutory tax rate for corporates has been lowered to 22 percent from 30 percent. This benefit, though, is only for companies that wish to give up their tax exemptions. Given that most tax incentives and exemptions have been phased out over the past few years, companies may prefer to forego the few they enjoy now, and opt to be taxed at the lower rate of 22 percent.
New manufacturing companies incorporated after October 1, 2019, can benefit from an even lower rate of 15 percent tax if they don’t claim the tax benefits they are eligible for. India Inc will also get relief on MAT (Minimum Alternate Tax). The Finance Minister has reduced MAT to 15 percent from 18.5 percent. This would benefit companies located in SEZ developers, infrastructure, cement companies, companies with units in specified locations in the North-East and exporters. There is also relief on buyback tax.
Denne historien er fra September 23, 2019-utgaven av The Hindu Business Line.
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Denne historien er fra September 23, 2019-utgaven av The Hindu Business Line.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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