The recession is the major issue which has to be addressed by the Government. The slowdown in the economy is hurting all the segments and it is important that the negative sentiment regarding the slowing economy has to be checked in time. The government is working hard to improve the sentiment and has been interacting with the trade and industry, Professionals, Economist and others about the steps needed for putting the economy on the fast track.
The Finance Minister Smt. Nirmala Sitaraman has on 20.09.2019 given a major surprise by announcing the Tax reliefs in the corporate tax rate and other relief which had a wide impact. The amendments has been carried out through a Tax ordinance issued by Government of India. The major relief announced are –
Corporate tax rate has been slashed.
Manufacturing company which are incorporated after 1st October, 2019 may chose to pay tax @ 15%. The effective rate which surcharge / cess will be 17.01%.
Domestic company to pay tax @ 22%. The effective rate which surcharge / cess will be 25.17% provided they will not avail any exemption or incentive.
Listed company that announced Buyback before 5th July, 2019 will not have to pay tax on Buyback of shares.
MAT rate reduced from 18% to 15%.
The finer prints are contained in the ordinance issued and the same should be seen. The benefit given are really great and it would definitely jump start the economy in a big way.
AIFTP welcomes the concession given by the Union Finance Minister and also request that concessions are also required for the individual tax payer also. The penalty provisions should also be rationalized.
AIFTP is having the next National Tax Conference and NEC Meeting at Varanasi in November, 2019 and thereafter there will be Mumbai convention in December, 2019. All the Members are requested to join the programmes in large numbers.
Wish you all the best and a very happy Dusshera and Ram Navmi.
Dr. Ashok Saraf
National President, AIFTP