The government has slashed corporate tax to 22 percent without exemptions or incentives for the domestic and new manufacturing companies in a major fiscal booster.
Companies that opt for 22 percent income tax slab will not have to pay minimum alternative tax and the effective tax rate will be 25.17 percent, as said by the Finance Minister Nirmala Sitharaman.
Nirmala Sitharaman has said that the new tax rate will be applicable from the current fiscal which began on 1st April. She also said that the revenue foregone on reduction in corporate tax and other relief measures will be Rs 1.45 lakh crore annually.
The 30-share index has zoomed 1608.91 points, or 4.46 percent, to 37,702.40 at 11.30 am, while the broader Nifty went up 474 points, or 4.43 percent, to 11,179.