Reduced Corporate Tax Rate @ 25% for MSMEs/ Companies having Turnover upto 250 crore (Budget 2018)
While presenting Budget 2018-19, the Finance Minister Mr Arun Jaitley has proposed that benefit of reduced Corporate Tax rate at 25% will be extended to all MSMEs/ companies having turnover upto Rs. 250 crores in the financial year 2016-17. After this measure, out of about 7 lakh companies filing returns, about 7,000 companies which file returns of income and whose turnover is above Rs.250 crores will remain in 30% slab.
As per Budget, a reduced rate of 25% is proposed for companies that have reported turnover up to Rs 250 crores in financial year 2016-17. This will benefit the entire class of Micro, Small and Medium Enterprises (MSMEs) which accounts for almost 99% of companies filing their tax returns. reduce corporate tax rate in a phased manner. The lower corporate income tax rate for 99% of the companies will leave them with higher investible surplus which in turn will create more jobs.”
It may be noted that corporate tax rate was earlier reduced to 25% for companies whose turnover was less than Rs. 50 crores in financial year 2015-16.