Current Affairs

Taxation Laws (Amendment) Bill, 2019

Current context: Finance Minister Nirmala Sitharaman introduced the Taxation Laws (Amendment) Bill, 2019 in the Lok Sabha on 25th Nov 19.
Taxation Laws (Amendment) Bill, 2019 
  • The Taxation Laws (Amendment) Bill, 2019 seeks to replace the ordinance, issued on 20th Sept 19 that contains the provision of:
    1. Lowering of the corporate tax rate to 22% from 30% for companies that don’t seek exemptions.
    2. 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%
Taxation Laws (Amendment) Bill, 2019 Taxation Laws (Amendment) Bill, 2019 Reviewed by Neha Verma on November 25, 2019 Rating: 5

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