India to Cut Effective Corporate Tax from 30% to 25.17%
In order to promote growth and investment, Finance Minister Nirmala Sitharaman on September 20 slashed the effective corporate tax from 30 percent to 25.17 percent, inclusive of all cess and surcharges for domestic companies. However, the move, effective from April 1, is subject to the condition that they will not avail any other incentive or exemptions.
The government has also decided not to levy the enhanced surcharge introduced in Budget 2019 on capital gain arising from sale of equity shares in a company liable for the securities transaction tax (STT).
Also, the super-rich tax will not apply on capital gains arising from sale of any security including derivatives in hands of foreign portfolio investors (FPIs).