Key Takeaways from the Press Release by Ministry of Finance on 20th September, 2019

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  1. Any Domestic Company has an option to pay income tax at the rate of 22% provided that they will not avail any exemption/ incentive. The effective tax rate shall be 25.17% inclusive of cess and surcharges.
  2. The Domestic Companies taking the above option is also not required to pay Minimum Alternate Tax.
  3. Companies incorporated after 1st October 2019 has an option to pay income tax at the rate of 15%. This benefit is available to companies which do not avail any exemption/incentive and commences their production on or before 31st March, 2023.
  4. A Company which do not opt for the concessional tax regime and avails the tax exemption/incentive shall continue to pay tax at the pre-amended rate.
  5. The enhanced surcharged introduced by the Finance (No.2 ) Act , 2019 shall not apply on the capital gains arising on the sale of equity share in the company or unit of an equity oriented fund or a unit of a business trust liable  for STT, in the hands of individual, HUF, BOI and AJP.
  6. The enhanced surcharge shall also not apply to the capital gains arising on sale of any security including derivatives, in  the hands of Foreign Portfolio Investors.
  7. Now, CSR 2 % fund can be spent on incubators funded by Central or State Government and making contributions to Public funded universities, IITs, National Labs and autonomous Bodies.

To download the press release, Press Release dated 20.09.2019

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