New Corporate Income Tax By Government Of India

  • Admin
  • 06 Mar, 2020

The Government of India has introduced the Taxation Laws (Amendment) Ordinance 2019 bringing certain key amendments in the Income-tax Act 1961 and the Finance (No. 2) Act 2019. 

The amendments were announced by the Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman. For your kind reference, we have compiled the key amendments which are as under

Domestic companies to be taxed @ 22% and new domestic manufacturing companies @ 15%

Domestic company has been given an option to pay income-tax at the rate of 22% provided they will not avail any specified exemption/incentive. The effective tax rate for these companies shall be 25.17% inclusive of surcharge &cess

In order to boost fresh investment in manufacturing, a new provision has been inserted in the Income-tax Act with effect from FY 2019-20 which allows any new domestic company incorporated on or after 1st October 2019 making fresh investment in manufacturing, an option to pay income-tax at the rate of 15%. This benefit is available to companies which do not avail any exemption/incentive and commences their production on or before 31st March, 2023. The effective tax rate

We hope you will find this information useful and let us know if you need any further information. For the sake of brevity we have only highlighted the major changes and these are conditions attached to the availing of above reduced rates of Income Tax. Thanks.

Best regards

Corpcode Team 

Share Your Thoughts