Cabinet clears bill to replace ordinance on tax reduction

Union Cabinet on vember 20, approved a bill to replace an ordinance promulgated to reduce corporate tax to 22 per cent to boost ecomy. After Cabinet meeting here, Finance Minister Nirmala Sitharaman said decision has been taken to bring bill to replace ordinance.

bill is likely to be introduced in Parliament during ongoing Winter Session, sources said.

Bill on Tax reduction

On September 20, Sitharaman said revenue foregone on reduction in corporate tax and or relief measures would be Rs 1.45 lakh crore annually.

Following decision, corporate tax rate has come down to 22 per cent for domestic companies if y do t avail any incentive or concession.

Also, companies opting for 22 per cent income tax slab would t have to pay minimum alternate tax (MAT).

tax rate has been reduced to 15 per cent for new domestic manufacturing companies incorporated after October 1.

government had also anunced t to levy enhanced surcharge introduced in Budget on capital gains arising from sale of equity shares in a company liable for securities transaction tax (STT).

Besides, government had decided that listed companies which have anunced buyback of shares prior to July 5 will t be charged with super-rich tax.

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