Udayavni Special

Highlights of announcements made by FM


Team Udayavani, Sep 20, 2019, 3:48 PM IST

Following are the highlights of the announcements made by Finance Minister Nirmala Sitharaman on reduction in corporate tax and other fiscal relief measures for the economy to promote growth and investment:

* Corporate tax rate has been slashed to 22 per cent for domestic companies not availing any incentives/exemptions; earlier rate 30 per cent

* Effective tax rate for such companies now stands at 25.17 per cent including cess and surcharge; earlier it was 34.94 per cent

* Also, such companies shall not be required to pay Minimum Alternate Tax (MAT)

* New domestic companies incorporated on or after Oct 1, 2019, making fresh investment in manufacturing can pay income-tax at a rate of 15 pc; the earlier rate was 25 pc

* However, lower tax is applicable if the companies do not avail any exemption/incentive, and commence production by March 31, 2023

* Their effective tax rate will be 17.01 per cent inclusive of surcharge and cess; earlier the rate was 29.12 per cent

* These companies, too, will not be required to pay MAT

* For cos which continue to avail exemptions/incentives, the MAT has been reduced from 18.5 per cent to 15 per cent

* Enhanced super-rich tax on capital gains on the sale of share in hands has been removed

* Enhanced surcharge will also not apply to capital gains on sale of security in hands of foreign portfolio investors (FPIs)

* Enhanced surcharge introduced in Budget shall not apply on capital gain arising on sale of equity shares in a Co liable for Securities Transaction Tax (STT)

* No tax on buyback of shares if companies have made an announcement regarding it before July 5 2019

* Scope of corporate social responsibility (CSR) activities has been expanded

* Lower tax rates are effective from April 1, 2019

* Changes in Income Tax Act, 1961 and Finance Act, 2019 made through an ordinance.

* Revenue foregone for the reduction in corporate tax and other relief is estimated at Rs 1.45 lakh crore.

Top News

No signs of Indian, Chinese troops backing off as standoff persists in eastern Ladakh

Students, migrants take first flight home after being grounded for weeks due to lockdown

As domestic flights are set to resume, tight measures in place for safety of passengers, drivers at B’luru airport

CT Ravi demands reopening of hotels

Govt extends validity of vehicle documents till July 31

Covid 19: Five new cases confirmed in Udupi, total 23 cases today

Covid 19: K’taka tally rises to 2089

Related Articles More

Hired over 20,000 employees in US in last 5 years: TCS

D-Mart April revenue declines 45 pc due to lockdown

Telcos approach TRAI seeking early decision on floor price issue

Don’t fear CBI, CVC, CAG; extend loan to eligible borrowers: FM to bankers

GoAir says awaiting ‘clarity’ on readiness of states, airports for flight operations

MUST WATCH

Tragedy and chaos: Former MIA director recalls Mangalore Air Crash

Lockdown relaxation: Long queues outside liquor stores in Mangaluru

Indian Coast Guard thank Covid-19 warriors

#WeFeed – Feeding stray animals during lockdown!

Mysuru-origin doctor honoured with parade for her service in treating COVID-19 patients in US

Latest Additions

MHA issues SOP for stranded Indians who wish to return

No signs of Indian, Chinese troops backing off as standoff persists in eastern Ladakh

Yogi calls on UP governor Anandiben Patel

Qureshi says Pak will give ‘befitting response’ to India in case of ‘any misadventure’

Watch video: NZ PM continues with TV interview during earthquake

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.