Press Information Bureau
Government of India
Ministry of Finance

Government Calls for Comments on Proposed Plan of Phasing-Out Exemptions and Deductions under the Income-Tax Act in Order to Bring Down Rate of Corporate Tax from 30% to 25%   

The Union Finance Minister Shri Arun Jaitley in his Budget Speech 2015 had indicated that the rate of Corporate Tax will be reduced from 30% to 25% over the next four years along with corresponding phasing-out of exemptions and deductions. This is a step towards simplification of tax laws, which is expected to bring about transparency and clarity.

The Government proposes to implement this decision in the following manner:

  • Profit linked, investment linked and area based deductions will be phased out for both corporate and non-corporate tax payers.
  • The provisions having a sunset date will not be modified to advance the sunset date. Similarly the sunset dates provided in the Act will not be extended.
  • In case of tax incentives with no terminal date, a sunset date of 31.3.2017 will be provided either for commencement of the activity or for claim of benefit depending upon the structure of the relevant provisions of the Act.
  • There will be no weighted deduction with effect from 01. 04.2017.

The details of proposed phasing-out of deductions are available on the website of the Income Tax Department at

Comments on this proposal may be sent within 15 days to Director (TPL-III) on mail at [email protected] or by post at Director (TPL III), Central Board of Direct Taxes, Room No. 147G, North Block, New Delhi- 110001.


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  1. Deepak Soni says:

    I shall request the Government to reduce the harassment to the assesses and reduce the useless paper work.The cost of compliance is abnormally high and full of irritation.

  2. Rajesh,Mumbai says:

    Please stop fooling indian people.corporate Tax is not 30% but it is more than 40%.

    First Abolish Dividend Distribution Tax (DDT) which is nothing but double taxation. Example: X Company earned Rs 1 crore, they have to pay Rs. 30.9 Lacs as Income tax leaving net profit as 69.1 Lacs. Now if company wants to distribute this net tax paid profit, it has to pay Rs.11.75 Lacs as DDT leaving Rs.57.35 Lacs only for shareholders.

    So effective tax on company works out to be Rs.42.65 Lacs on income of 1 crore or 42.65%.

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June 2021