Corporate Tax to be Slashed for Domestic 'Manufacturing Companies
With the country's economy taking it's worst beating in years, Finance Minister Nirmala Sitharaman has announced revenue-related measures to boost the economy. Ahead of the GST Council meet, Ms. Sitharaman said that the Government proposed to slash corporate tax rates for domestic companies and for new domestic manufacturing companies.According to the new provision in the Income Tax Act, domestic companies will be allowed to pay 22 per cent income tax which will be effective from Financial Year 2019-2020.
Ms. Sitharaman said that new companies coming up in manufacturing will be taxed at 15 per cent if they are willing to forgo incentives and exemptions. She also added that further, MAT (Minimum Altenative Tax) relief would be given for those opting to continue paying surcharge and cess.The MAT has been reduced to 15 per cent from 18.5 per cent for companies who continue to avail incentives and exemptions.
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