Source Times of India dated 04.02.2022
The government wants new domestic companies to set up their manufacturing units in India fast and hence the concessional tax rate of 15% has been extended by a year till March, 2024, revenue secretary Tarun Bajaj said on Friday.
Stating that direct and indirect tax collections are going up and have good buoyancy, Bajaj said it means that the corporate section is also doing well, and India’s tax to GDP ratio could be “highest ever” in the current year.
The budget 2022-23 presented on February 1 has proposed that the concessional 15% corporate tax rate would be available for one more year till March 2024 for newly incorporated manufacturing units.
While reducing the corporate tax rate in September 2019, the government had said that any new domestic company incorporated on or after October 1, 2019 making fresh investment in manufacturing, will have an option to pay income-tax at the rate of 15% if they commenced their production on or before March 31, 2023.
However, these companies will not be allowed to avail to any income tax exemption / incentives.
Share this content: