The steep corporate tax cut in 2019 and pandemic-driven cost-cutting boosted the bottom-line of India Inc by 105 percent in FY21 over FY20, even though the top line declined 5 percent, according to a report. This also had 4,000 listed companies paying record corporate tax, a net increase of over Rs 50,000 crore in FY21 to Rs 1.90 lakh crore, from around Rs 1.40 crore in FY20, an analysis by SBI Research showed on Tuesday.

The government had slashed the effective corporate tax rate from 35 to 26 percent in September 2019, coupled with lower expenses due to the pandemic, has boosted their bottom line to record levels in FY21, the report said without citing the actual profit numbers. For these companies, average revenue fell only 5 percent in FY21, but their net income grew by 105 percent over FY20, the report said without quantifying it. The tax cut has contributed 19 percent to the topline of these companies during the pandemic with cement, tyre and consumer durables gaining in excess of 50 percent, it added.

 More importantly, 15 sectors led by refineries, steel, fertilisers, textiles, pharma, IT, mining;etc reduced their loan funds in the range of 6-64 percent or to the tune of Rs 2.09 lakh crore in FY21, which again boosted their bottom-line. Carrying on the benefit of cost cuts, arising from lower expenses by way of salary cuts have come as a blessing in disguise for the government in FY22 as corporate tax mop-up in the first two months of the fiscal is the best in two decades at Rs 43,454 crore, up from Rs 16,981 crore in FY20, and Rs 1,126 crore in FY19, according to Soumya Kanti Ghosh, group chief economic adviser at State Bank of India.

10,000 fine for non-linking of Aadhaar-PAN card, do this while sitting at home

Modi govt to build green corridor to fight drone attack

Centre grants a 5-year extension on tax deductions on donations to Ramdev’s Patanjali Research