Lok Sabha passed Taxation Law Amendment Bill 2019 on the 2nd of December 2019 to give effect to reduction in Corporate Tax. The corporate tax rate has been reduced to 22 percent from 30 percent for the domestic companies and to 15 percent from 25 percent for new manufacturing firms incorporated after October 1, 2019, and starting operations before March 31, 2023. The Finance Minister said that the government wants to draw manufacturing companies from all over the world and the service sector companies will also benefit from the concessional tax regime of 22% extended to all existing domestic companies.
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