The lower middle class already had much to cheer in Budget 2017 when late former finance minister Arun Jaitley halved the personal income tax in the Rs 2.5-5 lakh bracket to 5 per cent and again in the Interim Budget 2019, thanks to the full tax rebate offered to individuals with taxable annual income up to Rs 5 lakh. Those with a total annual income of over Rs 10 lakh currently fall in the 30 per cent tax slab. The buzz is that those earning up to Rs 55 lakh may also get major tax relief.
Sitharaman recently had announced a relaxation in the corporate tax rates for domestic companies and new manufacturing domestic companies. As per the tax reforms, domestic companies will be taxed at 25.17 per cent, whereas new manufacturing firms will be taxed at 17 per cent.
Both tax rates include all the surcharges and cess and will be applicable from the ongoing financial year. The decision is meant to increase liquidity at the companies' disposal and encourage foreign investment, especially in the manufacturing segment.
Courtesy: Business Today
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