Corporate tax charges noticed sharp reductions in 2018 and 2019. After remaining fixed at 34.61% between FY2015 and FY2017, it fell to 30% in FY2018. The fee was minimize once more in FY2019 to 25.71%. However, the charges are skewed, with uneven distribution amongst corporations.
The effective tax fee of the total base of corporations reporting profits was 27.81 per cent for monetary 12 months 2018-19 as towards the fee of 29.49 per cent reported in the monetary 12 months 2017-18.
Steep fall
India’s company tax fee has fluctuated over the years, with FY18 and FY19 recording steep drops. In FY19, the company tax fee in India was 25.71%.
More revenue, extra tax
Higher effective tax charges had been paid by corporations having a bigger share in profits. Firms with an effective tax fee between 25% and 33% had 58.5% share in complete profits.
Skewed in the direction of the richest
While the tax fee was highest for corporations with profits between Rs. 100 and Rs. 500 crore, corporations with the highest profits (greater than Rs. 500 crore) had the least effective tax fee.
Global snapshot
In 2019, India’s company tax fee was amongst the lowest in the world.
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Source: Budget paperwork | *Figures for FY2021-22 are Budget estimates; FY2020-21 are revised estimates.
