look news india
To keep the private capital expenditure cycle going, the government may announce a new scheme of concessional corporate tax rate for new manufacturing units in the next general budget. The new scheme may also be similar to the previous scheme.
In which a concessional rate of 15 per cent was offered as compared to 22 per cent for others. But it ended on 31 March 2024. When the curtain is lifted on the old scheme, its tenure cannot be extended. Of course a new scheme will be announced. However, the final decision on the structure of this scheme is yet to be taken.
Notably, in September 2019, an ordinance introduced a relief regime with a tax rate of 15 per cent, effective from fiscal year 2019-20, for domestic manufacturing units incorporated after October 1, 2019, and units that commence production before the extended sunset deadline of March 31, 2024.
new tax relief scheme
New concessional corporate tax rate scheme likely to be applicable for new manufacturing units
In the financial year 2019-20, 1,244 companies opted for 15 percent lower tax rate.
Under the old regime, the corporate tax rate was 15 per cent, but it ended on March 31, 2024.
Now new units set up in FY 2024-25 are eligible to pay 22 per cent corporate tax
Under the old scheme, 3,508 companies availed tax relief in the financial year 2020-21.