In a major fiscal booster, government on Friday has slashed effective corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic companies. Making anuncement, Finance Minister Nirmala Sitharaman said new tax rate will be applicable from current fiscal which began on April 1.

Corporate tax slashed to 25.17%

Sitharaman said revenue foregone on reduction in corporate tax and or relief measures will be Rs 1.45 lakh crore annually. This, she said is being done to promote investment and growth. In effect, corporate tax rate will be 22 per cent for domestic companies, if y do t avail any incentive or concession. changes in Income Tax Act and Finance Act will be me effective through an ordinance. Minister also said companies opting for a 22 per cent income tax slab would t have to pay Minimum Alternate Tax (MAT). Sitharaman furr said, new domestic manufacturing companies incorporated after October 1, can pay income tax at a rate of 15 per cent without any incentives. Meaning, effective tax rate for new manufacturing companies will be 17.01 per cent inclusive of all surcharge and cess. Sitharaman furr said companies can opt for a lower tax rate after expiry of tax holidays and concessions that y are availing w.

RE | Nirmala Sitharaman & Kiran Mazumdar-Shaw In Twitter Spat Over Ecomy

Sensex zooms over 1,300 points 

Domestic equity benchmark BSE Sensex skyrocketed over 1300 points in morning session on Friday after Finance Minister Nirmala Sitharaman anunced a slew of measures to revive ailing ecomy. In a major booster to market, government has decided to t levy enhanced surcharge introduced in Budget on capital gain arising on sale of equity shares in companies liable for securities transaction tax.

RE | Finance Minister Nirmala Sitharaman Unveils Reforms To Boost Exports

Also, super-rich tax will t apply on capital gains from sale of any security including derivatives in hands of foreign portfolio investors. In ar relief, Minister said listed companies that have anunced buyback of shares prior to July 5 will t be charged with super-rich tax.  30-share index zoomed 1326.65 points, or 3.68 per cent, to 37,420.12 at 1120 hours, while broer Nifty rose 362.95 points, or 3.39 per cent, to 11,067.75. Top gainers in Sensex pack included Maruti, M&M, HDFC Bank, Tata Motors, Yes Bank, Tata Steel, L&T, ICICI Bank, Bajaj Auto and RIL, rallying up to 9 per cent. On or hand, TCS and NTPC were tring in red. rupee too appreciated 66 paise to 70.68 against US dollar following Finance Minister's anuncements. 

RE | Nirmala Sitharaman Anunces Measures To Boost Real Estate Sector

RE |  Ecomic Crisis, Govt Taking Steps To Make It Stronger: Javekar