Reduction in corporate tax rates to 22% for domestic companies and 15% for new domestic manufacturing companies
With an aim to promote growth and investment & thereby further boost the Make – In – India initiative of the Government, the Government has brought in Taxation Laws (Amendment) Ordinance 2019 to make certain amendments in Income Tax Act 1961 and Finance (No. 2) Act 2019. This was announced by the Finance Minister – Ms. Niramala Sitharaman during a Press Conference in Goa.
As per the new amendments, the corporate tax rates slashed to 22% for domestic companies and 15% for new domestic manufacturing companies and other fiscal reliefs.
The total revenue foregone for the reduction in corporate tax rate and other relief is estimated at INR 1,45,000 cr.