New Corporate Tax: Impact of Corporate Tax Cut on Indian Economy
Aarchi1, Amartya Saha2, Ankita Kumari3, Anuradha Padhy4, Anuradha Panda5
1Aarchi*, BBA.LLB, KIIT School of Law, KIIT University, Bhubaneswar (Odisha), India.
2Amartya Saha, BBA.LLB, KIIT School of Law, KIIT University, Bhubaneswar (Odisha), India.
3Ankita Kumari, BBA.LLB, KIIT School of Law, KIIT University, Bhubaneswar (Odisha), India.
4Anuradha Padhy, BBA.LLB, KIIT School of Law, KIIT University, Bhubaneswar (Odisha), India.
5Anuradha Panda, BBA.LLB, KIIT School of Law, KIIT University, Bhubaneswar (Odisha), India.
Manuscript received on June 16, 2021. | Revised Manuscript received on June 21, 2021. | Manuscript published on July 30, 2021. | PP: 44-50 | Volume-10 Issue-2, July 2021. | Retrieval Number: 100.1/ijrte.B61190710221| DOI: 10.35940/ijrte.B6119.0710221
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: On 20th December, 2019, the Central Government introduced the Taxation Laws (Amendment) Ordinance, 2019, which created a favourable taxing environment for the Companies. Through this Ordinance, section 115BAB, which covers all sorts of domestic companies, that is, any company formed and registered in India, was introduced in the Income Tax Act which offered a very low tax rate of 15% (17.5% including surcharge and cess) to the new manufacturing companies. This Ordinance also reduced the Tax rate for domestic companies to 22% (25.17% including surcharge and cess). Additionally under the new corporate assessment strategy, new organizations that set up assembling offices in India beginning in October and initiate creation before the finish of March, 2023 will be charged at a viable pace of 17%. This move did cause a rise in the value of the stock in India, but through this paper, we plan to delve deeper into how this new introduction affected the economy of India – ranging from the stock market to the value of rupees against dollar, the idea behind introducing this Ordinance, while also touching upon what is Corporate Tax and the Corporate Tax system that was present before the introduction of section 115BAB.
Keywords: Corporate Tax, Taxation Laws (Amendment) Ordinance, Economy, Stock, Section 115BAB.