Putting at rest months of post-budget gloom, the Indian markets roared back on Friday as the finance minister announced a reduction in corporate income tax. In an unexpected move, the dismissed-as-a-newbie to finance,Nirmala Sitharaman used a smart nudge to get the existing firms to on-board a lower tax regime, while she announced the reduction of the tax rate for new firms. Firms incorporated on or after 1 October 2019, that do not avail any tax break, will now pay 15% (effective rate is 17.01% post surcharge and cess) as corporate income tax, down from the existing top marginal rate of 34.94% for firms of turnover over ₹400 crore.
2 comments
K
October 23, 2019 at 4:36 am
Hi –
I have a question about 80C, not sure if this is the right place to do so, but asking nonetheless.
Under 80C, if I max out the 1.5 Lac limit through EPF, ULIP etc., can I still invest in PPF? I understand that I will not get tax exemption at “entry” i.e. my contribution to PPF will not be tax deductible, but can I still put money in and get the tax exemption at “exit” [+ the security and general higher rate of return compared to FD].
I already have a PPF, so in order to keep it active I have already contributed 1k for the fiscal year in April.
Haven’t seen a post in a long time. Hope all is well and hope to see a post soon.
Thanks in advance.
monikahalan
October 25, 2019 at 6:10 am
All good, thanks. Was out of the country. PPF won’t allow inflows more than the limit. Regards