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The objective of this document is to summarize all the tax concessions, applicable w.e.f FY 2019-20, announced by Finance Minister, Nirmala Sitharaman with intent to boost the economy and to promote ‘Make-in-India’.
Highlights of Tax Concessions by Finance Minister press Conference on 20 Sep 2019
1. Tax Concessions for Existing Domestic Companies.
1.1. Option has been given to existing domestic companies to pay corporate tax @22% and the same are not required to pay MAT
1.2. MAT has been reduced from 18.5% to 15% for companies which continue to avail tax exemptions/incentives
2. Tax Concessions for New Domestic Companies.
Option has been given to pay corporate tax @15% to domestic companies incorporated on or after 01-Oct-2019 making fresh investment in manufacturing and the same are not required to pay MAT
3. Enhanced surcharge of 25%/37% shall not be applicable on tax payable on capital gains arising from transfer of certain securities.
4. No tax on buy back of shares in the hands of listed companies announced buy-back of shares prior to 05-July-2019
5. Going forward the amount spent by corporate on incubators run by public sector undertakings (PSUs) shall also be considered as part of CSR expenditure.
1.1. Option has been given to existing domestic companies to pay corporate tax @22% and the same are not required to pay MAT
1.2. MAT has been reduced from 18.5% to 15% for companies which continue to avail tax exemptions/incentives
Option has been given to pay corporate tax @15% to domestic companies incorporated on or after 01-Oct-2019 making fresh investment in manufacturing and the same are not required to pay MAT
3. Enhanced surcharge of 25%/37% shall not be applicable on tax payable on capital gains arising from transfer of certain securities
To stabilize the flow of funds into the capital market, Central Government withdraws enhanced surcharge from the FY 2019-20 (AY 2020-21) on tax payable on transfer of capital assets as mentioned below:
4. No tax on buy back of shares in the hands of listed companies announced buy-back of shares prior to 05-July-2019
5. Going forward the amount spent by corporate on incubators run by public sector undertakings (PSUs) shall also be considered as part of CSR expenditure
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Disclaimer:
This document had been written to provide updates under Income Tax in a simple manner. The author shall not be responsible for any of the decision made based on the contents of this document.