NEW DELHI: FM Nirmala Sitharaman proposes to slash corporate tax for domestic cos, new local manufacturing cos through an ordinance.
Any domestic co gets an option to pay income tax at a rate of 22 pc subject to condition that they will not avail any incentive said FM.
New domestic manufacturing cos incorporated after Oct 1 can pay income tax at 15 pc rate without any incentives says FM.
Cos opting for 22 pc income tax slab won’t have to pay minimum alternative tax; effective rate will be 25.17 pc incl surcharges, cess said FM.
Effective tax rate for new manufacturing cos will be 17.01 pc inclusive of all surcharge and cess said FM.
Companies can opt for lower tax rate after expiry of tax holidays, concessions that they are availing now said FM.
Enhanced surcharge introduced in Budget shall not apply on capital gain arising on sale of equity shares in a Co liable for STT said FM. (Agencies)
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