Share on LinkedInShare on LinkedIn

ARTICLE · 25 SEPTEMBER 2019

Legal Update On Recent Tax Rate Reductions

The Government of India has introduced the Taxation Laws (Amendment) Ordinance 2019 on September 20, 2019 and thereby made amendments in the Income-tax Act 1961 and the Finance (No. 2) Act 2019.

IndiaTax

The Government of India has introduced the Taxation Laws (Amendment) Ordinance 2019 ("the Ordinance") on September 20, 2019 and thereby made amendments in the Income-tax Act 1961 ("the Act") and the Finance (No. 2) Act 2019. These amendments provide fiscal reliefs that are aimed to attract foreign investment, act as a stimulus to the government's "Make in India" initiative, improve competitiveness of the private sector, job creation and counter the current economic slowdown.

Key announcements:

1. Option for Indian company to pay income tax at the rate of 22%

In order to promote growth and investment, a new provision has been inserted in the Act with effect from April 1, 2019 which allows Indian companies to pay income-tax at a reduced rate of 22%, which were earlier taxed at a base rate of 30% plus applicable surcharge and cess (25% for companies which had a turnover less than approx. USD 60 million, excluding surcharge and cess). The reduced base rate of 22%

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

DISCLAIMER: The views and opinions expressed in this article are those of the author and does not constitute a legal opinion/advice by DMD Advocates. The information provided through this article is not intended to create any attorney-client relationship between DMD Advocates and the reader and, is not meant for advertising the services of DMD Advocates or for soliciting work by DMD Advocates. DMD Advocates does not warrant the accuracy and completeness of this article and, the readers are requested to seek formal legal advice prior to acting upon any information provided in this article. Further, applicable laws and regulations are dynamic and subject to change, clarification and amendment by the relevant authorities, which may impact the contents of this article. This article is the exclusive copyright of DMD Advocates and may not be circulated, reproduced or otherwise used by the intended recipient without our prior permission.

See more popular content from