Govt cuts corporation tax to 25.17% for domestic firms; Sensex up 1200 pts

Sitharaman said the revenue foregone on reduction in corporate tax and other relief measures will be Rs 1.45 trillion annually

In a major fiscal booster, the government on Friday slashed effective corporatIon tax to 25.17 per cent inclusive of all cess and surcharges for domestic companies.

Making the announcement, Finance Minister Nirmala Sitharaman said the new tax rate will be applicable from the current fiscal which began on April 1.

Sitharaman said the revenue foregone on reduction in corporation tax and other relief measures will be Rs 1.45 trillion annually.

This, she said is being done to promote investment and growth.

In effect, the corporate tax rate will be 22 per cent for domestic companies, if they do not avail any incentive or concession.

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