Diwali Bonus by FM Nirmala Sutharaman : Mega announcement on taxation front
FM announces reduction in Corporate Tax rate as per Income Tax. Know new rate of tax FY 2019-20
1.Total revenue foregone by undertaking these measures is Rs 1.45 lakh crore per year, says Sitharaman
2.For listed companies which made announcement for public buyback before July 2019 it is provided that tax on buyback on shares of such companies will no be charged
3.To stabilise flow of funds into the market the enhanced surcharge announced in Budget 2019 will not apply on capital gains arising on sale of any security, including derivatives by foreign portfolio investors (FPI)
4.To attract investment in manufacturing, local companies incorporated after October 2019 will pay tax at 15 percent
5. Announcement to give MAT relief for those opting to continue paying surcharge and cess. MAT has been reduced to 15 percent from 18.5 percent for companies who continue to avail exemptions and incentives
6.Finance Minister also announced that effective tax for new companies shall be 17.01 percent, including cess and surcharge. Companies enjoying tax holidays would be able to avail concessional rates post the exemption period.