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Corporate Tax Relief for Domestic Companies Announced:- It may be a surprise but the Indian Finance Minister Nirmala Sitharaman announced a tax relief for domestic companies. The corporate tax has been slashed from 30% to 22%. This is a huge boost for several manufacturing companies. The new proposals will come into existence from the current financial year which is April 2019. Nirmala Sitharaman said that the total revenue forgone through this move will be Rs 1,45,000 crores per year.
All the domestic companies will now have to pay income tax of 22% and they will not avail any incentives or exemptions. The effective tax rate for these companies shall be 25.17%, inclusive of all surcharges. All the companies that are enjoying tax holidays will be able to avail concessional rates. In order to stabilize the flow of funds into capital markets, Nirmala Sitharaman announced enhanced surcharge that is introduced during the budget in July 2019. Domestic companies will now get exemption from MAT.
After these big announcements, Sensex jumped 1510 points and Nifty gained 454 points.
(Video Source: NTV Telugu)