New Delhi: Finance Minister Nirmala Sitharaman held a press conference before the GST Council meeting on 20 September in Modi Government 2.0. During this, she announced the reduction of tax on companies and said that the new changes will take effect after an ordinance. In order to promote Make in India, another provision has been added in the Income Tax Act from 2019-20, so that any new domestic company formed on or after October 1 makes a fresh investment in manufacturing, then an income tax of 15 percent on it. Will take.
A new provision has been added to the Income Tax Act, according to which, a domestic company will have to pay income tax at the rate of 22 percent with certain conditions. To do this, these companies will not be able to take advantage of any incentives or discounts. Including all surcharges and cess, the effective tax rate for these companies will be 25.17 percent. In order to make the flow of funds in the capital market permanent, this provision has been made that the increased surcharge brought in the budget of July 2019 will not apply to the capital gains received from the sale of equity shares in a company.
There will not be any surcharge on the capital gains from any security cell. Listed companies which have made the buyback public before 5 July 2019 will get relief. Such companies will not have to pay any tax on the buyback of shares. The government will have to bear the additional expenditure of 1.45 lakh crore after this announcement.