Lok Sabha passes Bill to effect corporate tax reduction

Lok Sabha on Monday passed a Bill to replace an Ordinance for effecting reduction of corporate tax rates. Taxation Laws (Amendment) Bill, 2019, will amend Income Tax Act 1961 and Finance ( 2) Act 2019. It replace Ordinance which was Promulgated by President in September. In biggest reduction in 28 years, government in September slashed corporate tax rates up to 10 percent points as it looked to pull ecomy out of a six-year low growth with a Rs 1.45 lakh crore tax break.

Base corporate tax for existing companies has been reduced to 22 per cent from 30 per cent, and to 15 per cent from 25 per cent for new manufacturing firms incorporated after October 1, 2019, and starting operations before March 31, 2023. companies opting for lower tax rates, however, will t be entitled to claim any rebate or deductions.