Less taxing times for some

In this year's Budget, the government announced its plans to reduce corporate tax from 30 per cent to 25 per cent in four years. To seek public comments, the tax department has issued a draft proposal for implementing the finance minister's road map for reduction in corporate tax and phasing out of exemptions and incentives.

The move is likely to benefit companies currently taxed at highest rate of 34.6 per cent. Companies that pay low taxes by availing certain exemptions might stand to lose. Bank of Amercia-Merrill Lynch has analysed firms' earnings per share (EPS), based on estimated tax rate for 2018.

To list out companies that would be biggest beneficiaries and losers by the move. For instance, the aggregate tax rate for the Sensex companies is likely to be 29 per cent in 2016-17. Lower tax rate of 25 per cent would boost Sensex earnings per share (EPS) by 5 per cent. On an individual basis, the impact would be much better (see list below):