- Sunday 20 Oct 2019
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.
Mumbai: Housing finance major HDFC Ltd on Sunday said it has localised its website in six Indian languages, in addition to English, to help homebuyers....
New Delhi: Mukesh Ambani-led Reliance Jio has alleged that review of call connect charges by Trai "sabotages" the Prime Minister's vision for Digital ....
New Delhi: The railways has decided to prune the Railway Board by 25 per cent, cutting down its strength from 200 to 150 by transferring director-leve....
Kolkata: Thomas Cook India Ltd (TCIL) has taken a strategy of "wait and watch" on the use of brand, as the travel and leisure company is striving to c....
Mumbai: Depositors of scam-hit Punjab and Maharashtra Cooperative Bank on Saturday staged a protest outside the Reserve Bank headquarters here demandi....
Mangaluru: A Gandhi Sankalp Yatra was organised by DK District Committee of the BJP on Sunday in connection with the 150th birth anniversary celebrati....
New Delhi: Finance Minister Nirmala Sitharaman has said the global economic risks and imbalances reinforce the need to strengthen international co-ope....
Chandigarh: The ruling BJP is locked in a tight contest with the opposition Congress and the fledgling JJP for the 90 assembly seats that will go to p....
Lucknow: The family members of little-known Hindu outfit chief Kamlesh Tiwari, killed two days ago here, met Uttar Pradesh Chief Minister Yogi Adityan....
New Delhi: Only a little over 25,000 of the nearly one lakh overseas Indians who had registered as voters flew down to India to exercise their franchi....