New Manufacturing companies to get an option to be taxed at 25%

Announcing Corporate Tax proposals Shri Arun Jaitley said that new manufacturing companies incorporated on or after 1st March 2016 will be given an option to be taxed at 25% + Surcharge and Cess provided they do not claim profit-linked or investment-linked deductions and do not avail of investment allowance and accelerated depreciation.

He further proposed to lower the Corporate Tax rate for the next financial year for relatively small enterprises i.e., companies with turnover not exceeding Rs.5 crore (in the financial year ending March 15), to 29% +Surcharge and Cess.

Source : Equity Bulls

Keywords