Corporate Tax Rate

RBI expected to cut its repo rate by 25 basis points on FridayBut nearly 60% of around 50 economists said stimulus measures were unlikely to have a notable impact on economy

Last week the government announced 8 percentage point cut in corporate tax. Lower tax would mean that companies get to keep more profits with themselves for various purposes. Companies may pay higher dividend, pay off costly debt, invest in capacity or even pass on the benefits to customers by cutting prices of their products. Here, we discuss the impact on two sectors: consumer staples and banking.

Given current weak demand conditions, OEMs are expected to pass on some benefits of the tax revision to end consumersThe reduction in corporate tax will also help improve the cash flow of manufacturers

FM Nirmala Sitharaman slashed corporate tax rates across the board —lowering it to 15% for companies incorporated after 1 October — sending the markets soaring by 1650 points — the highest one-day gain

The finance ministry lowered the corporate tax rate to 22% for firms that do not avail tax incentives. New manufacturing companies will have to pay an even lower corporate tax rate of 15%Listed companies announcing share buybacks before 5 July to be exempt from buyback tax

Hindustan Unilever CMD Sanjiv Mehta Thursday pitched for reducing corporate tax rate and redressal of technical glitches and procedural matters of GST

The new direct tax code will focus of making the Income Tax Act simpler and less prone to litigation

Finance secretary Hasmukh Adhia says it is important to 'remove the unevenness' in tax collections, with the salaried class paying more tax than businessmen

Arun Jaitley says the Indian economy is witnessing a phase of consolidation after a series of structural reforms over the last two years and this consolidation will be led by the MSMEs sector

Narendra Modi government's last full-year budget before elections may not have lit any large fires, but it also failed to ignite any big hope