Highlights of Nirmala Sitharaman’s fourth press conference to revive the economy:
– Corporate tax rate cut for domestic companies and new domestic manufacturing companies. The tax rate will be 22 percent without exemptions.
– Effective corporate tax rate after surcharge to be 25.17 percent.
– To attract investment in manufacturing, local companies incorporated after October will pay tax at the rate of 15 percent.
– Effective tax for new companies shall be 17.01 percent, including cess and surcharge.
– Companies enjoying tax holidays can avail concessional rates after the exemption period.
– Minimum alternate tax (MAT) reduced to 15 percent from 18.5 percent for companies continuing to avail exemptions and incentives.
– Enhanced surcharge to not apply to capital gains by foreign portfolio investors (FPIs).
– Buyback tax on listed companies that had announced buybacks before July 5 exempted from taxation.
– Revenue foregone for reduction on corporate tax and other measures pegged at Rs 1.45 lakh crore per year.
