Current context: Finance Minister Nirmala Sitharaman introduced the Taxation Laws (Amendment) Bill, 2019 in the Lok Sabha on 25th Nov 19.
a. 15%
b. 22%
c. 25%
d. 30%
- The Taxation Laws (Amendment) Bill, 2019 seeks to replace the ordinance, issued on 20th Sept 19 that contains the provision of:
- Lowering of the corporate tax rate to 22% from 30% for companies that don’t seek exemptions.
- Reduced the rate for new manufacturing companies to 15% from 25%.
- The Taxation Laws (Amendment) Bill, 2019 slashes the corporate rate tax to 22% for domestic companies provided they do not claim certain deductions under the IT Act.
- The bill provides an option to pay income tax at the rate of 15% to new domestic manufacturing companies, provided they do not claim certain deductions.
- Currently, 25% is the rate of income tax that is paid by the domestic companies with an annual turnover of up to Rs 400 crore and 30% is the rate for other domestic companies.
Question:
Q.1 The Taxation Laws (Amendment) Bill, 2019 contains the provision to slash the corporate rate tax to ______% for domestic companies provided they do not claim certain deductions under the IT Act.a. 15%
b. 22%
c. 25%
d. 30%
