The 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 the Income Tax Act 1961 & the Finance (No 2) Act 2019. It replaces the Ordinance which was Promulgated by the President in September.
In the biggest reduction in 28 years, the govt in September slashed corporate tax rates up to 10 percentage points as it looked to pull the economy out of a 6-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, & to 15 per cent from 25 per cent for new manufacturing firms incorporated after Oct 1, 2019, & starting operations before Mar 31, 2023.
The companies opting for lower tax rates, however, willn't be entitled to claim any rebate or deductions.
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