What are the major announcements made by the Finance minister on the corporate tax front. Does the tax stands reduced for all companies?

This time the Friday press conference was conducted by Nirmala Sitharaman from Goa where she had gone to attend the GST Council Meet. Among the major decisions announced by the Finance Minister, there is the proposed slash in corporate tax rates for domestic companies and for new domestic manufacturing companies. Interestingly, the ordinance for slashing the tax rate had already been passed. What is more interesting is that the tax exemptions will be effective from the current financial year which began on April 1, 2019 and ends on March 31^st 2020. Corporates that have paid excess tax in the form of advance tax can recalculate their tax now and pay lower tax in the coming quarters.

The big announcement, largely unexpected came on the rates of corporate tax. The Finance Minister has proposed to slash the corporate tax rate for domestic companies and new domestic manufacturing companies. The corporate tax rate after surcharge will now be 25.17 percent inclusive of all cess and surcharges for domestic companies. The corporate tax rate has been brought down from 30 percent to 22 percent. This is a new formula being offered to Indian companies and they will have to opt for the new 22% formula. On top of that there will be 10% surcharge and 4% cess which will take the total cost to 25.17%. There will be no MAT (minimum alternate tax) payable on this amount.