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 Finance Minister Nirmala Sitharman on Friday slashed corporate tax rates for domestic companies and new domestic manufacturing companies. The announcement comes ahead of the crucial GST meet in a bid to boost the capital markets.

The government has cut the effective corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic companies.

 

This, she said is being done to promote investment and growth.

In effect, the corporate tax rate will be 22 per cent for domestic companies, if they do not avail any incentive or concession.

Making the announcement, Finance Minister Nirmala Sitharaman said: "In order to promote growth and investment, a new provision has been inserted in the Income Tax Act, with effect from financial year 2020. It will allow any domestic company an option to pay income tax at 22 per cent subject to the condition that they will not avail any exemption or incentives".