On 20th September, 2019 Finance Minister has made big announcements in order to boost the Indian economy. These announcement shall be applicable from Financial year 2019-20. Please find below cardinal announcements made by the Finance Minister:

1. Reduction in Tax Rates:

Sr. No. Particulars Tax Rate Effective Tax Rate MAT Conditions Optional to whom
1 Domestic Companies 22% 25.17% MAT shall not applicable Shall not avail any exemption/ incentive Company enjoying tax holiday subject to MAT @ 15%. However after that they can opt for this.
2 New Domestic Companies (Incorporated after 1st Oct, 19) 15% 17.01% MAT shall not applicable Shall not avail any exemption/incentive NA

2. No Surcharge:No enhanced surcharge shall not apply on

  1. sale of any security including derivatives in hands of FPIs
  2. capital gain arising on sale of equity shares in a corporation liable for STT

3. BBT: No Buy back transaction tax shall be charged to tax in the case of Listed companies

4. CSR: CSR 2% fund can be spent on incubators funded by CG/ SG or any agency or PSUs of CG/SG, Universities, IITs, National Laboratories and Autonomous Bodies

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I am a chartered accountant by profession, having good research and interpretation skills in taxation laws like Goods and Service Tax (GST) law, International taxation, Income tax Act, Customs Act and Foreign Trade Policy (FTP) etc. I am passionate to learn new concepts and share my little understa View Full Profile

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    1. santoshjagdale says:

      Provisions of section 10AA or clause (iia) of sub-section (1) of section 32 or section 32AD or section 33AB or section 33ABA or sub-clause (ii) or sub-clause (iia) or sub-clause (iii) of sub-section (1) or sub-section (2AA) or sub-section (2AB) of section 35 or section 35AD or section 35CCC or section 35CCD or under any provisions of Chapter VI-A under the heading “C.—Deductions in respect of certain incomes” other than the provisions of section 80JJAA;

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October 2020