Finance Minister Nirmala Sithraman today said, a new provision has been inserted in the Income-tax Act which allows any domestic company an option to pay income-tax at the rate of 22% if they do not avail any exemption/incentive. It will be effective from the current Financial Year. Addressing the media ahead of 37th GST council meeting in Goa today, she announced reduction in corporate tax for domestic companies and domestic new manufacturing companies.
Another new provision allows any new domestic company incorporated on or after 1st October 2019 making fresh investment in manufacturing and commences their production on or before 31st March, 2023, will have to pay income-tax at the rate of only 15%. Finance Minister has also announced the government decision to expand the scope of 2 percent CSR spending.
Prime Minister Narendra Modi has hailed the decision to cut corporate tax terming it as historic one. In a tweet, Mr Modi said, it will give a great stimulus to Make In India, attract private investment from across the globe, improve competitiveness of the private sector, create more jobs and result in a win-win for 130 crore Indians.