Historical reduction in corporate tax rate.vinod inaniyan December 24, 2019 0 COMMENTS
Finance Minister Nirmala Sitharaman announced a corporate tax cut on September 20 with the aim of boosting the economy and establishing India as an attractive investment destination.
Under this, the rate of corporate tax for domestic companies has been reduced from 30 percent to 22 percent, and new domestic companies investing in manufacturing sector will have to pay corporate tax at the rate of only 15 percent.
The rate of corporate tax was earlier 30% plus cess surcharge, 34.94% was taxed, now 25.17% will be taxed.
Apart from this, domestic companies will also not need to pay minimum internet tax.
For this, the government has brought Taxation Laws Ordinance 2019 to make some changes in Income Tax Act 1961 and Finance Act 2019.The new tax rates are effective from 1 April 2019.
After the new announcement, the new rates of corporate tax have come down in Southeast Asia.Investment in employment and economic activity under Make in India is likely to increase with tax exemption.
The government’s move has been called by S & p Global as the government’s credit negative development.
Corporate tax is also called corporation tax or company tax It is a direct tax imposed by the government on the income or capital of corporations or respected legal entities.
The company, whether Indian or foreign, is liable to taxation under the Income Tax Act, 1961.