Finance Minister Nirmala Sitharaman proposed to slash corporate tax for domestic companies.
Equity benchmark Sensex and Nifty rallied nearly 2 % after Finance Minister Nirmala Sitharaman on Friday proposed to slash corporate tax for domestic and new local manufacturing companies. The effective rate will be 25.17 %, including surcharges and cess. The measures will be implemented through an ordinance, she told.
The FM said the new provision has been inserted into the Income-Tax Act with effect from the fiscal year 2019-20 to promote growth. it will allow any domestic company to pay income-tax at 22 % subject to the condition that it will not avail any other incentive or exemptions
The rate of Minimum Alternative Tax (MAT) has been reduced from 18.5 % to 15 %. The objective is to provide relief to companies that continue to avail exemptions and incentives, the Finance Minister said.
The 30-share Sensex jumped 1,300 points while Nifty topped 11,000-mark.
ll the players in the Sensex pack were trading in the green with Tata Steel gaining the most 5.19 %. It was followed by Maruti Suzuki (up 5 %), HDFC Bank (up 4.86 %), YES Bank (up 4.62%) and Reliance Industries (up 3.50 %).
Among the sectoral indices on BSE, the Auto index rallied the most 3.69 %. Bankex, Capital Goods, Metal, Consumer Durables, and Oil & Gas were up between 1.50% and 3.70 %
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