The government is considering to reintroduce the concessional corporate tax rate in the upcoming Union Budget 2025, CNBC-TV18 reported citing sources. Several leaders of India Inc have been asking the government to reintroduce the scheme.
However, the rate may be set at 18%, higher than the earlier 15%, the report added. Moneycontrol couldn't verify the report independently.
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Concessional corporate tax was introduced in 2019. It allowed any new domestic company incorporated on or after October 1, 2019 to pay income tax at the lower rate of 15% if they commenced their production on or before March 31, 2023.
The concessional tax rate was lower than the 22% rate that generally prevailed for companies. In the Budget presented on February 1, 2023, the government extended the concessional 15% corporate tax rate for new manufacturing units by one more year till March 2024.
The tax rate was then phased out and stopped in 2024.
The proposal to reintroduce the concessional tax rate is under active consideration by the North Block and Prime Minister's Office (PMO), sources told CNBC-TV18.
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