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ARTICLE · 25 SEPTEMBER 2019

MAT Is Abolished – FM Announces Other Reforms

Corporate tax rate to be 22% without exemptions, inclusive of surcharge and cess.

IndiaTax
  • Corporate tax rate to be 22% without exemptions, inclusive of surcharge and cess.
  • No Minimum Alternate Tax (MAT) applicable on such companies
  • Effective corporate tax rate after surcharge to be 25.17 percent
  • To attract investment in manufacturing, local companies incorporated after October 2019 will pay tax at 15 percent
  • That effective tax for new companies shall be 17.01 percent, including cess and surcharge. Companies enjoying tax holidays would be able to avail concessional rates post the exemption period.
  • Will give MAT relief for those opting to continue paying surcharge and cess. MAT has been reduced to 15 percent from 18.5 percent for companies who continue to avail exemptions and incentives:

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