Budget 2019: Here's how to make sense of changes in tax rules & regulations

Here are some insights on key issues

Reduction in corporate tax rates

Background
 

The headline corporate tax rate in India is 30 per cent, coupled with the dividend distribution tax of 20 per cent. With most tax incentives being phased out, it is imperative that the headline rate be reduced.

Further, LLPs are treated on a par with companies as a vehicle to undertake various activities. Even the phasing out of tax incentives were made applicable to both companies as well as LLPs. Hence, the benefit of reducing tax rate should also apply to LLPs. 

Issue

Globally, key economies (the likes of the US and the UK) have lowered the corporate