Finance Minister Nirmala Sitharaman today announced big cuts in corporate tax rate, giving a 1.45 lakh crore stimulus aimed at reviving private investment and lifting growth from a six-year low. The government also rolled back enhanced surcharge, announced in this year's Budget, on capital gains arising on sale of equity share in a company or a unit of an equity oriented mutual fund in the hands of an individual. The Dalal Street cheered the move, with the Sensex soaring over 2,200 points. The government has promulgated an ordinance to make amendments in the Income-tax Act and make them effective from retrospective from April 1

Prime Minister Narendra Modi in a tweet said: "The step to cut corporate tax is historic. It will give a great stimulus to #MakeInIndia, attract private investment from across the globe, improve competitiveness of our private sector, create more jobs and result in a win-win for 130 crore Indians.

Here are 10 things to know about changes announced in Income Tax Act:

1) The government slashed basic corporate rate tax to 22% from 30% for domestic companies that don't avail any exemption/incentive.

2) The effective tax rate for these companies shall be 25.17% inclusive of surcharge and cess. Also, such companies shall not be required to pay Minimum Alternate Tax or MAT.

3) To boost manufacturing and the ‘Make-in-India’ initiative, the government has slashed corporate tax rate to 15%, from 25%, for domestic companies incorporated on or after 1st October 2019 making fresh investment in manufacturing.

4) The option to pay income tax at the rate of 15% is available to companies which do not avail any exemption/incentive and commence their production on or before 31st March, 2023.

5) The effective tax rate for these companies shall be 17.01% inclusive of surcharge & cess. Also, such companies shall not be required to pay Minimum Alternate Tax.

6) A company which does not opt for the concessional tax regime and avails the tax exemption/incentive can continue to pay tax at the pre-amended rate. After expiry of their tax holiday/exemption period, these companies can opt for the new concessional tax regime.

7) To provide relief to companies which continue to avail exemptions/incentives, the government has reduced the rate of Minimum Alternate Tax or MAT to 15%, from 18.5%.

8) To increase the flow of funds into capital markets, the government rolled back increased surcharge introduced in this year's Budget on capital gains arising on sale of equity share in a company or a unit of an equity oriented fund or a unit of a business trust liable for securities transaction tax, in the hands of an individual, HUF, AOP (Association of Persons), BOI (Body of Individuals) and AJP (Artificial Juridical Person).

9) The enhanced surcharge will also not apply to capital gains arising on sale of any security including derivatives, in the hands of Foreign Portfolio Investors (FPIs).

10) To provide relief to listed companies that had announced share buyback before 5th July 2019, the government exempted such companies from buyback tax announced in the Budget.

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