Panaji: Union Finance Minister Nirmala Sitharaman on Friday announced to slash the corporate tax for domestic companies and stated that a new provision has been inserted in the Income Tax Act with effect from the fiscal year 2019-20.
“We today propose to slash the corporate tax rates for domestic companies and also for new domestic manufacturing companies,” Sitharaman told media.
This new step will help to promote growth and investments in the country.
“A new provision has been inserted in the Income Tax Act with effect from the fiscal year 2019-20, which allows any domestic company an option to pay income tax at the rate of 22 per cent subject to the condition that they will not avail any exemptions or incentive,” she said. Such companies shall not be required to pay any minimum alternative tax.
She added, “to attract investment in manufacturing, local companies incorporated after October 2019 will pay tax at 15 per cent.”
“No Minimum Alternate Tax (MAT) applicable to such companies,” she said.