Finance minister announced a reduction in corporate tax to 22% for existing companies and 15% for new manufacturing companies.
In a bid to stimulate the economy, the finance minister announced on Friday a reduction in corporate tax down to 22% for existing companies and 15% tax for new manufacturing companies.
“This benefit is available to companies which do not avail any exemption/incentive and commences their production on or before 31 March, 2023. The effective tax rate for these companies shall be 17.01% inclusive of surcharge and cess. Also, such companies shall not be required to pay Minimum Alternate Tax,” she added.
Sitharaman said the companies have option to opt for the new taxation system or remain take benefits under the existing taxation regime. “A company which does not opt for the concessional tax regime and avails the tax exemption/incentive shall continue to pay tax at the pre-amended rate,” she said.
Sitharaman said the companies have option to opt for the new taxation system or remain take benefits under the existing taxation regime. “A company which does not opt for the concessional tax regime and avails the tax exemption/incentive shall continue to pay tax at the pre-amended rate,” she said.
