New Delhi: Investor wealth Monday rose by Rs 6.82 lakh crore as the domestic equity market rallied following Finance Minister Nirmala Sitharaman's announcement on reduction of corporate tax and MAT rates.
Led by the spike in equities, the market capitalisation of BSE-listed companies climbed Rs 6,82,938.6 crore to Rs 1,45,37,378.01 crore on Friday as compared to Rs 1,38,54,439.41 on Thursday (September 19).
In its largest single-day jump in the last 10 years, the BSE Sensex rose 1921.15 points or 5.32 percent at 38,014.62 while the NSE Nifty zoomed 569.40 points or 5.32 percent to 11,274.20.
The government on Friday announced that corporate tax rates will be slashed to 22% for domestic companies and 15% for new domestic manufacturing companies.
“In order to promote growth and investment, a new provision has been inserted in the Income-tax Act with effect from FY 2019-20 which allows any domestic company an option to pay income-tax at the rate of 22% subject to condition that they will not avail any exemption/incentive. The effective tax rate for these companies shall be 25.17% inclusive of surcharge & cess. Also, such companies shall not be required to pay Minimum Alternate Tax,” an official release said.