Two in three cos may shift to new corporation tax rates immediately: Crisil

Half of those shifting may use tax savings for ongoing capex to strengthen balance sheet

Two in three companies may shift to the new corporation tax regime immediately, finds a Crisil Ratings survey of 850 large companies. The reduction in corporation tax rate announced by the government spawns optimism with a tinge of cautiousness among companies, it said.

"(There is) Optimism as most companies will benefit and intend to retain the savings to reduce funding constraints and strengthen balance sheets to be ready for fresh capex once demand revives. And cautiousness as the savings alone may not lead to immediate pick-up in fresh capex given the weak demand environment," Crisil said in a statement.

These finding are