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IMPORTANT ANNOUNCEMENTS by FM
A domestic company can pay income tax at 22% if they dont seek any exemption or incentives.
Effective Tax Rate 25.17% inclusive of all surcharges and cess for such domestic companies
Such companies also not required to pay Minimum Alternative Tax.
A domestic company can pay income tax at 22% if they dont seek any exemption or incentives.
Effective Tax Rate 25.17% inclusive of all surcharges and cess for such domestic companies
Such companies also not required to pay Minimum Alternative Tax.
To provide relief to companies which continue to avail exemptions and incentives, rate of Minimum Alternate Tax has been reduced from existing 18.5% to 15%.
BOOST TO INVESTMENT IN MANUFACTURING
New Provision in IT Act
Any new domestic company incorporated on or after 1st Oct 2019 making fresh investment in manufacturing has an option to pay tax at 15% if not seeking incentives and commence production before 31st Mar 2023.
New Provision in IT Act
Any new domestic company incorporated on or after 1st Oct 2019 making fresh investment in manufacturing has an option to pay tax at 15% if not seeking incentives and commence production before 31st Mar 2023.
Relief to listed companies which have already made a public announcement of buy-back before 5th July 2019,
No tax on buy-back of shares in case of such companies.
No tax on buy-back of shares in case of such companies.
Stabilising flow of funds into the capital market:
Enhanced surcharge under Finance (No.2) Act, 2019 not to apply on capital gains arising on sale of equity share in a company or a unit of an equity oriented fund or a unit of a business trust liable for STT.
Enhanced surcharge under Finance (No.2) Act, 2019 not to apply on capital gains arising on sale of equity share in a company or a unit of an equity oriented fund or a unit of a business trust liable for STT.
Total revenue foregone for the reduction in corporate tax rate and other relief: 1 lakh 45 thousand crores rupees per year.
Govt. has decided to expand the scope of 2% spending on CSR; this can now be spent on incubators funded by central/state governments, or any agency or PSU of central/state govt, and making contribution to publicly funded universities.
