Tax Bonanza For Domestic, News Manufacturing Companies As FM Nirmala Sitharaman Slashes Corporate Tax To 25%

The Logical Indian Crew India

September 20th, 2019 / 4:15 PM

Corporate Tax Nirmala Sitharaman

Image Credits: Patrika

Finance minister Nirmala Sitharaman announced corporate tax cut to 25.17 per cent from 35 per cent inclusive of all the cess for all the domestic companies from April 1. The companies will also be exempted from the Minimum Alternative Tax (MAT).

The tax cut will increase the burden on the government to the tune Rs 1.45 lakh crore. The move is an attempt to attract private investment as the Indian tax rate is now at par with the other Asian countries. Reserve Bank Governor Shaktikanta Das welcomed the government’s decision and called it a ‘bold move’. The tax cut, however, would be subjected to the condition that the domestic companies do not avail of any tax incentives or exemptions.

Apart from the tax cut, Sitharaman announced a series of measures to boost the economy. New domestic manufacturing companies, incorporated on or after October 1, 2019, will be allowed to pay corporation tax at the rate of 17.01 per cent. To provide relief to companies that continue to avail of exemptions and incentives, the rate of MAT has been reduced from 18.5 per cent to 15 per cent.

Enhanced surcharge introduced by the Finance Act 2019 shall not apply to capital gains arising on sale of equity share in a company/unit of equity-oriented fund or unit of business trust liable for a securities transaction tax, the FM announced. The enhanced surcharge shall not apply to capital gains on the sale of any securities, including derivatives, in the hands of Foreign Portfolio Investors (FPIs). 

Listed companies which have made a public announcement of buyback before July 5, 2019, will be exempted from paying tax on buyback of shares. 

The finance minister also announced an expansion in the scope of CSR activities. The companies can now spend up to 2 per cent of their money on state or union govt incubators, PSUs, state universities, IITs, or public-funded entities.

Also Read: Government Bans E-Cigarettes But Not Tobacco, Who Stands To Gain?


Written by : Shubhendu Deshmukh

Edited by : Shweta Kothari

Related Stories

Air India, BPCL To Be Sold By March 2020: FM Nirmala Sitharaman

Sitharaman Housing Project

Nirmala Sitharaman Announced Rs 10,000 Cr For Unfinished Housing Projects

Nirmala Sitharaman Blames UPA Govt, Rajan For ‘Worst’ Banking Crisis, Manmohan Singh Hits Back

Nirmala Sitharaman Defends Govt, After Husband’s Advice To Embrace Rao-Manmohan Model To Save Economy

GST Might Have Flaws, But We Cannot Just Damn It Now: Finance Minister Nirmala Sitharaman


As #BoycottMillennials Trends On Social Media, Nirmala Sitharaman Has Lot To Answer

Latest on The Logical Indian


Detained For Over 110 Days Under PSA, Farooq Abdullah Named On A Defence Panel By Centre


Chhattisgarh Panchayat Penalises Gang-Rape Survivor Rs 5,000 For Going To Cops, Bringing Disrepute To Village


State-Run Banks Disbursed Over ₹2.5 Trillion In Loans In October: Finance Ministry


Kerala: 10-Yr-Old Girl Dies Of Snakebite In School; Teachers, Doctors Accused Of Negligence


ABVP Protests Against JNU Fee Hike, Demands Dissolution Of High-Level Committee Formed By HRD Ministry

Fact Check

Fact Check: Viral Photo Of Ranu Mondal’s Makeover Is Fake, Makeup Artist Shares Real Pictures


Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.