Highlights of the announcements made by the Finance Minister (FM) on 19 Sep 2019:
1. FM slashes corporate tax rate to 22% also removes liability to pay MAT for domestic companies.
2. Buy-back tax not to apply for listed cos, Companies made public announcement of buy back before July 5, 2019.
3. Companies enjoying tax holiday can avail concessional rate after exemption period and MAT reduced to 15% for such companies.
4. Manufacturing companies incorporated after Oct 2019 and commencing production till March 31, 2023 to pay tax at 15%.
5. No Enhanced surcharge on capital gains on sale of equity shares, unit of Equity Oriented Fund or unit of business trust liable for STT in hands of I/HUF/AOP/BOI/AJP.
6. No Enhanced surcharge on capital gains on sale of securities including derivatives in the hands of FPIs.
7. CSR 2% can be spent on incubators or institutes engaged in promoting science research.
The total revenue loss due to reduction in corporate tax rate and other relief estimated at Rs. 1,45,000 crore.
For detailed press release click on below link:
CS Aman Jain