New Delhi: Finance Minister Nirmala Sitharaman on Friday proposed to extend the lower rate of 25 percent Corporate Tax to all companies with annual turnover up to Rs 400 crore. Currently, this rate is only applicable to companies having annual turnover up to Rs. 250 crore.
Presenting the Union Budget 2019-20 in Lok Sabha, Sitharaman said, “Currently, the lower rate of 25 percent is only applicable to companies having annual turnover up to 250 Crore. I propose to widen this to include all companies having annual turnover up to 400 crore. This will cover 99.3% of the companies. Now only 0.7% of companies will remain outside this rate.”
The tax rate for corporate assessees was gradually reduced to 25 percent and currently, only large corporates (with turnover above Rs 250 crore) are required to pay tax at the rate of 30 percent.
Moreover, even a large new manufacturing company having turnover above Rs. 250 crore is taxed at 25 percent.