Home » National » Union government has cut the corporate tax from nearly 35 to about 25 per cent for domestic investors

Union government has cut the corporate tax from nearly 35 to about 25 per cent for domestic investors

Newdelhi20/9/19::Union  government has cut the corporate tax from nearly 35 to about 25 per cent for domestic investors.
Addressing Media ahead of 37th GST council meeting in Goa, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman said the new domestic manufacturing companies will have to pay 15 per cent tax.
The Minister said a new provision has been ed in the Income-tax Act with effect from Financial Year 2019-20, which allows any domestic company an option to pay income-tax at the rate of 22 per cent if they do not avail any exemption/incentive.
Now, the corporate tax rate for domestic companies shall be 25.17 per cent inclusive of surcharge & cess, which was earlier nearly 35 per cent. Also, such companies shall not be required to pay Minimum Alternate Tax.

Under the new provision a new domestic company incorporated on or after 1st October 2019 making fresh investment in manufacturing and commences their production on or before 31st March, 2023, will have to pay income tax at the rate of only 15 per cent.
Finance Minister has also announced the government decision to expand the scope of 2 per cent CSR spending.

The Minister also expressed confidence that the move is well studied whereby industrial growth and investment which is due to increase with this move will compensate revenue forgone for reduction.

Total revenue foregone for the reduction in corporate tax rate and other relief are estimated to be at 1.45 lakh crore rupees

About Editor in chief

Ashok Palit has completed his graduation from Upendranath College Soro, Balasore and post graduation from Utkal University in Odia Language and literture.. He has also carved out a niche for himself as a scribe of eminence after joining the profession in 1988. He is also an independent media production professional. He brings loads of experience to Advanced Media, Ashok Palit as a cineaste has been active in film criticism for over three decades. As a film society activist, he soared to eminence for his profound commitment to the art film appreciation and aesthetics of cinema. His mode of discourse is often erudite but always lucid and comprehensible marked by a perfect acumen so rare in the field. A film aesthete with an immense fond of critical sensibilities, he wrote about growth and development of odia cinema in New Indian Express, The Times of India, The Hindustan Times, The Asian Age and Screen. He has been working as an Editor for Cine Samaya from 2002-2004.. He had made solid contribution on cinema in many odia Dailies and weekly such as Samaj, Prajatantra, Dharatri, Samaya, Satabadi, and weekly Samaya.

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