After her maiden budget on July 5, Sitharaman on 20 September announced a cut in corporate income taxes for domestic companies to 22% from 30% previously. This would bring effective corporate tax rate, including all additional levies, to about 25.2%, for companies which are not receiving any incentives or exemptions. New manufacturing companies formed after October 1 will enjoy a 15% (effective rate of 17%) corporate income tax rate, against 25% previously. Subsequent to this, there have been demands for a reduction in income tax rates for individuals as well so as to put more money in the hands of the common man for a consumption-led revival of the economy. "The government policy with reference to direct taxes in the medium term is to phase out tax incentives, deductions, and exemptions while simultaneously rationalising the rates of tax.

Source: Mint November 13, 2019 11:06 UTC