Few days after corporate tax cut announcement by the government, credit rating agency, Crisil Research in its latest report has said that the move may help about 1,000 listed companies in the country to save at least Rs 37,000 crore in taxes during current financial year.
The agency further noted that segments linked to the consumer would benefit the most, given higher effective tax rates of over 30 per cent, while export-linked sectors such as IT and pharma will benefit the least, accounting for only 5-6 per cent of potential savings. That’s because they already enjoy low effective tax rates.
Meanwhile, with an aim to revive growth and investment in country, Finance Minister Nirmala Sitharaman on September 20, 2019 announced a slew of measures including a cut in corporate taxes. The government has also decided to not levy enhanced surcharge introduced in Budget on capital gains arising from the sale of equity shares in a company liable for securities transaction tax (STT).