Corporate tax rates SLASHED for domestic cos & new domestic manufacturing cos
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Income Tax rates for all domestic companies have been slashed from 30% to 22% (or from 35% to 25.17% including surcharges and cess). Any domestic companies will have an option to pay income tax at the rate of 22% if they give up their exemptions or incentives -- and these companies will not be required to pay MAT, said the Union Finance Minister. 

Changes in the Income Tax Act and Finance Act will be made effective through an ordinance. "The total revenue foregone for the reduction in corporate tax and other changes is Rs 145,000 crore per year," she said.

1. Manufacturing companies registered after Oct 1 to get option to pay 15% tax. Effective tax rate for new manufacturing firms to be 17.01% inclusive of surcharge & tax.

2. From 2019-2020 or Current FY, Corporation tax on any domestic company shall be 22% provided they don't avail exemptions of any kind. Effective tax rate will now be 25.17, including surcharge and cess.

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• 3. MAT will be reduced from 18% to 15%.
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• 4. Companies will now be permitted to use their 2% CSR on incubation, IITs, NITs, and national laboratories. 
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5. Higher surcharge on individuals will not apply on capital gains arising from sale of securities including derivatives held by FPIs. No tax on buyback of shares on listed companies for deals announced before July 5, 2019.

Corporate tax slashed for domestic companies and new domestic manufacturing companies