Opinion | The FM should extend the tax nudge to personal income tax too3 min read 20 Sep 2019, 06:14 PM IST
To level the playing field between firms and individuals, and to potentially garner higher taxes, the FM should now extend this option to the individual income tax payers as well
Putting at rest months of post-budget gloom, the Indian markets roared back on Friday as the finance minister announced a reduction in corporate income tax. In an unexpected move, the dismissed-as-a-newbie to finance,Nirmala Sitharaman used a smart nudge to get the existing firms to on-board a lower tax regime, while she announced the reduction of the tax rate for new firms. Firms incorporated on or after 1 October 2019, that do not avail any tax break, will now pay 15% (effective rate is 17.01% post surcharge and cess) as corporate income tax, down from the existing top marginal rate of 34.94% for firms of turnover over ₹400 crore.
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