Union Finance Minister Nirmala Sitharaman has announced that a bill has been approved by the Union Cabinet to replace an ordinance promulgated to reduce corporate tax to 22% in order to boost the economy.
The bill is likely to be introduced in Parliament during the ongoing Winter Session, sources said.
It may be recalled that on September 20, Sitharaman said that the revenue foregone on reduction in corporate tax and other relief measures would be Rs 1.45 lakh crore annually.
After the decision, the corporate tax rate has come down to 22% for domestic companies if they do not avail any incentive or concession. Also, companies opting for the 22% income tax slab would not have to pay minimum alternative tax.
The tax rate has been reduced to 15% for new domestic manufacturing companies incorporated after October 1.