Current context: The Finance Ministry, GOI has slashed the corporate tax rates to 22% for domestic companies and 15% for new domestic manufacturing companies.
- The tax rates are slashed by following an amendment in the Income-tax Act 1961 and the Finance (No. 2) Act 2019
- The effective rate for domestic companies with inclusive surcharge and cess shall be 25.17%
- The effective rate for new domestic companies with inclusive surcharge and cess shall be 17.01%
- The new domestic companies are those companies that are incorporated on or after 1st October 2019 and will commence production on or before 31st March 2023
- The FinMin has also said that it will expand the scope of CSR 2 % spending
- The decisions have been taken to increase industrial growth and investment, boost ‘Make In India’ projects and to promote research in the country
- Rs. 1.45 lakh crore is the estimated total revenue foregone for the reduction in corporate tax rate and other relief
Question:
The Finance Ministry has recently slashed the corporate tax rates to ___% for domestic companies and _____% for new domestic manufacturing companies.
a. 15%, 20%
b. 22%, 20%
c. 22%, 15%
d. 15%, 22%
a. 15%, 20%
b. 22%, 20%
c. 22%, 15%
d. 15%, 22%
