After criticism on Tax Rate Reduction for Corporates Income Tax India has given following clarification on Twitter. It is to be noted that Tax Rate for Corporates been reduced to 22% while other category of Taxpayers Including, Individuals, HUF and Senior Citizens are not been given any relief by the Government –
The corporate tax collections during FY 2022-23 (till 31st July, 2022) register a robust growth of 34% over the corporate tax collections in the corresponding period of FY 2021-22.
The corporate tax collections during FY 2021-22 at Rs. 7.23 lakh crore registered a growth of over 58% as compared to the tax collection of FY 2020-21. Even when compared to collections of FY 2018-19( pre-COVID period), the collections of FY 2021-22 are higher by over 9%.
The positive trend of growth continues, but for the overall impact of the COVID-19 pandemic during FY 2020-21, when the corporate tax collections took a temporary hit.
This indicates that the simplified tax regime with low rates and no exemptions has lived up to its promise.
Source- Income Tax India Handle on Twitter – @IncomeTaxIndia