The Government has brought in the Taxation Laws (Amendment) Ordinance 2019 to make certain amendments in the Income-tax Act 1961 and the Finance (No. 2) Act 2019. Some salient features include:
- A new provision has been included in the Income Tax act, that allows any domestic companies an option to pay income tax at the rate of 22% without exemptions. These companies will not be required to pay MAT.
- Companies which want to avail of the exemptions shall be taxed at the earlier rates.
- For new manufacturing companies set up from 1 October 2019 and operational before 31st March 2023, the existing tax rate is 25% which has been brought down to 15% (plus surcharge & cess).
This is subject to analysis of the fine prints as per the Taxation Laws (Amendment) Ordinance 2019.