Company tax charges have been step by step diminished since 2016 whereas phasing out the exemptions and incentives.
In a written reply within the Rajya Sabha, Chaudhary gave the estimated income forgone because of the tax incentives by the use of numerous deductions in company tax, from FY 2019-20 to 2023-24.
The company tax income foregone in 2023-24 stood at Rs 98,999, adopted by Rs 88,109 crore and Rs 96,892 crore in 2022-23 and 2021-22, respectively.
In 2020-21 and 2019-20, the whole company tax income foregone was Rs 75,218 crore and Rs 8,043 crore respectively.
The minister was replying to a query from AAP MP Raghav Chadha on the estimated loss to the exchequer because of the company tax reductions from 2019-20 to 2024-25, and for the monetary yr (2024-25). Estimated income foregone for the monetary yr 2024-25 until date shouldn't be out there, Chaudhary mentioned. By means of Finance Act, 2016, the company tax charges had been diminished to 29 per cent of the whole earnings to advertise development, enhance funding and create extra job alternatives.
In 2017, the company tax charges had been diminished to 25 per cent of the whole earnings, make smaller home corporations having annual turnover of Rs 50 crores extra viable and to encourage companies emigrate to firm format.
In September 2019, the federal government introduced a reduce in base company tax for then current corporations to 22 per cent from 30 per cent; and for brand new manufacturing companies, included after October 1, 2019, to fifteen per cent from 25 per cent, offered they forego all exemptions and incentives.
Vide Finance Act, 2024, tax charges on the earnings of overseas corporations (aside from that chargeable at particular charges) have been diminished from 40 per cent to 35 per cent to advertise funding and employment.
