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
- sale of any security including derivatives in hands of FPIs
- 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
New tax rates are subject to not availing of any exemptions or incentives. What are the exemptions / incentives are comes under this