Friday, October 23, 2020
Home Government and Policy Corporate tax cuts will improve revenue generation: FM Nirmala Sitharaman

Corporate tax cuts will improve revenue generation: FM Nirmala Sitharaman

In tune with the Corporate Tax cuts announced in September 2019, Nirmala Sitharaman on Saturday announced proposed reduction of tax rates on cooperative societies to 22 per cent plus surcharge and cess, from 30 per cent at present.

Union Finance Minister Nirmala Sitharaman presented her second budget on Saturday. Ahead of the budget, there were great expectations from her to deliver on Narendra Modi’s vision of a $5 trillion economy. As such, the provisions in the budget regarding corporate taxes are crucial towards achieving that objective.

In tune with the Corporate Tax cuts announced in September 2019, Nirmala Sitharaman on Saturday announced proposed reduction of tax rates on cooperative societies to 22 per cent plus surcharge and cess, from 30 per cent at present.

In addition, Nirmala Sitharaman also announced the abolition of Dividend Distribution Tax(DDT), pegging the revenue forgone due to its removal at Rs 25000 crores. The Finance Minister said that the removal of DDT will encourage corporates to invest more.

Defending the loss of substantial revenue due to corporate tax slashed in September 2019, the Finance Minister Nirmala Sitharaman assured that the recent loss of government treasury will reap huge returns in due course. “Corporate tax cut and benefit derived by new companies, as well as improved GST collections will improve revenue generation & give the comfort to bring down fiscal deficit next year, with disinvestment too improving,” Sitharaman said.

The measures announced in the budget are consistent with the trajectory of the second term of the Narendra Modi government. In September, last year, Corporate Tax Rates were slashed by a significant degree in order to boost the economy. In a bid to give an impetus to the ‘Make in India’ campaign, a provision was inserted in the Income Tax Act with effect from 2019-20 which allowed new domestic company incorporated after 1st October 2019 to make fresh investment in manufacturing with an option to pay income tax at the rate of 15%.

Sitharaman had also announced that domestic companies can also pay income tax at the rate of 22% if they do not avail any incentive or exemptions. Following the move, the effective tax rates for these companies, including surcharge and cess came down to 25.17% from earlier 35%. To provide relief to companies availing of concessions and benefits, the FM had brought in a MAT relief by reducing it from 18% to 15%.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

US Senate Committee on Judiciary approves subpoenas for Jack Dorsey and Mark Zuckerberg asking them to testify over allegations of censorship

The senate approved the subpoenas in a 12-0 vote after both Facebook and Twitter censored a New York Post report on Joe Biden

Remembering Lalu’s Jungle Raj in Bihar: When an IAS officer’s wife was raped for two years by an RJD leader

During Lalu's Jungle Raj in Bihar, IAS Officer BB Vishwas's wife Chamba Biswas was raped for 2 years by RJD leader Mrityunjay Yadav

“Your outrage against Hinduphobic content on OTT platforms may actually be fuelling more such content”- Here is what an industry insider says

OTT platforms are not hit if a movie or a series if boycotted for Hinduphobic content as people have already paid for subscription

No, India Today, Katrina Kaif in yellow saree for Navratri is not offensive to Hindus, this is where you got it wrong

India Today tries to be holier than thou while trying to paint Hindus as trolls over Eros Now's vulgar Navratri posts

CM Yogi distributes relief amount of Rs 113.21 crore among the flood-affected farmers in Uttar Pradesh

CM Yogi distributed the relief amount to the flood-affected farmers in 19 districts of the state by online transaction.

‘Mughal Prince Tucy’ lashes out on AIMIM’s Asaduddin Owaisi, calls him ‘Bewakoof, and Gadha’

Prince Tucy said that when the people of Hyderabad are dealing with horrific floods, MP Asaduddin Owaisi is busy doing poll campaign in Bihar.

Recently Popular

France: Charlie Hebdo cartoons projected on government building to express solidarity with deceased teacher who was beheaded by Islamic terrorist

Days after the barbaric beheading of teacher Samuel Paty on the streets of Paris by a terrorist for showing the cartoons of Prophet Mohammad to his students, support continues to pour in for the deceased teacher.

Eros Now apologises for publishing vulgar Hinduphobic content on Navratri

After netizens outraged over vulgar posts on Navratri, Eros Now issued an apology.

Lucknow: Jama Mazar caretaker ‘Kale Baba’ caught running sex racket, video goes viral

The caretaker has allegedly confessed to police that he was sexually exploiting women and engaging them in illicit activities in the name of curing infertility and other ailments.

No, India Today, Katrina Kaif in yellow saree for Navratri is not offensive to Hindus, this is where you got it wrong

India Today tries to be holier than thou while trying to paint Hindus as trolls over Eros Now's vulgar Navratri posts

Complaints filed against Eros Now and Arré for vulgar social media posts related to Navratri

Both Eros Now and Arre had published social media posts linking Navratri festival with sex and vulgarity

Remembering Lalu’s Jungle Raj in Bihar: When an IAS officer’s wife was raped for two years by an RJD leader

During Lalu's Jungle Raj in Bihar, IAS Officer BB Vishwas's wife Chamba Biswas was raped for 2 years by RJD leader Mrityunjay Yadav
- Advertisement -

Argentinian artist accuses Disha Patani of passing off his artwork as her brother’s: Read details

In fact, the anime artwork shared by Disha Patani claiming to be her brother's artwork was first shared by Argentinian artist 'Inhoso' in July this year.

Raza Academy threatens to move court against Maharashtra govt if Eid-e-Milad procession is not allowed

Eid-e-Milad is celebrated to commemorate the birthday of Prophet Muhammad and it falls on 29th October this year.

US Senate Committee on Judiciary approves subpoenas for Jack Dorsey and Mark Zuckerberg asking them to testify over allegations of censorship

The senate approved the subpoenas in a 12-0 vote after both Facebook and Twitter censored a New York Post report on Joe Biden

Complaints filed against Eros Now and Arré for vulgar social media posts related to Navratri

Both Eros Now and Arre had published social media posts linking Navratri festival with sex and vulgarity

Chhattisgarh police file FIR against video journalist who had reported on farmer protests based on an allegedly edited video

Video journalist Manish Soni had reported about the plight of farmers whose paddy crops were ruined due to anti-encroachment drive

Reducing Navratri to ‘mating dance’, comparing Holi with terrorism— how the Indian media has turned Hinduphobic

After Eros Now posted series of vulgar messages associated with Navratri, far-left site Arre posted a Hinduphobic tweet on Durga puja

Remembering Lalu’s Jungle Raj in Bihar: When an IAS officer’s wife was raped for two years by an RJD leader

During Lalu's Jungle Raj in Bihar, IAS Officer BB Vishwas's wife Chamba Biswas was raped for 2 years by RJD leader Mrityunjay Yadav

“Your outrage against Hinduphobic content on OTT platforms may actually be fuelling more such content”- Here is what an industry insider says

OTT platforms are not hit if a movie or a series if boycotted for Hinduphobic content as people have already paid for subscription

Mumbai Police threatens Republic TV executive editor with imprisonment for refusing to reveal source of Hansa report in TRP scam

Republic TV Executive Editor warned by Mumabi Police that he will be booked under IPC sections 174 and 179 if does not give source of Hansa report

No, India Today, Katrina Kaif in yellow saree for Navratri is not offensive to Hindus, this is where you got it wrong

India Today tries to be holier than thou while trying to paint Hindus as trolls over Eros Now's vulgar Navratri posts

Connect with us

245,563FansLike
466,002FollowersFollow
18,800SubscribersSubscribe