- By Talib Khan
- Fri, 20 Sep 2019 01:36 PM (IST)
- Source:JND
New Delhi | Jagran Business Desk: In another major reform to boost the economy, Finance Minister Nirmala Sitharaman on Friday announced a slew of measures to uplift the domestic companies and new manufacturing domestic companies. The minister announced sharp cuts in corporation tax among a series of announcements.
Here are the key highlights from her press briefing:
*Corporate tax rate to be 22% without exemptions: All domestic companies to be allowed to pay corporation tax at the rate of 22% (effective rate 25.17% including cess and surcharge) subject to the condition that they will not avail any exemptions or incentive.
*Providing relief to the companies which avail exemptions and incentives, the finance minister announced that the rate of MAT has been reduced from 18.5% to 15%.
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*Any company registered on or after 1 October will be allowed to pay corporation tax at the rate of 15% (effective rate 17.01%) said the FM.
*Companies that are availing tax holidays at present can join the new regime once their tax holiday period ends.
*Total revenue forgone for Government is estimated around Rs 1.45 lakh crore per year because of the tax cut.
*Enhanced surcharge announced in Budget shall not apply on capital gains arising on sale of any securities including derivatives in the hands of foreign portfolio investors
*Relief to listed companies which have already made a public announcement of buyback before 5th July 2019. No tax on buyback of shares in case of such companies.
*Enhanced surcharge will not apply to capital gains arising on equity sale or equity-oriented funds liable to STT stabilize the flow of funds into capital markets.
*The companies can now spend 2% of the money on state or union govt incubators, PSUs, state universities, IITs, public-funded entities.