Govt may fix 2015-16 threshold for lower corporation tax rate

Rollback of petroleum product duties likely to be considered if crude oil reaches $60-65 a barrel

The finance ministry said on Saturday the threshold for the reduced corporation tax rate of 25 per cent on companies earning up to Rs 50 crore, announced in the Budget for 2017-18, might be 2015-16. This means even if these companies grow bigger in subsequent years, the lower tax rate would continue to apply for them.

Revenue Secretary Hasmukh Adhia said at the Business Standard Budget Round-table that a clarification regarding the year on which the reduced corporation tax rates would be frozen for small and medium enterprises would be given soon. “The criteria of Rs 50 crore turnover is frozen,”