Cabinet gives nod to corporate tax rate cut implemented through Ordinance.

• Nirmala Sitharaman said that all the proposals in the Ordinance have been approved by the cabinet including minor corrections to be done and clarifications to be issued

• The government had in September announced lower corporate tax for companies

The Union Cabinet on Wednesday approved the Taxation Laws (Amendment) Ordinance 2019, which lowered the corporate tax rate for domestic and new manufacturing companies through an Ordinance on 20 September, finance minister Nirmala Sitharaman said. The Ordinance had amended the Income Tax Act 1961 and the Finance (No 2) Act of 2019.

The minister said that all the proposals in the Ordinance have been approved by the cabinet including minor corrections to be done and clarifications to be issued. The government is now expected to move a bill in Parliament in the winter session of Parliament.

The government had in September announced a lower 22% corporate tax rate for companies that do not avail of any tax incentives and a 15% rate for new manufacturing companies that start production before March 2023 in a bid to reverse the economic slowdown. (Source: Livemint)