Sensex rises 2,000 points after Nirmala Sitharaman slashes corporate tax for domestic companies

Following the big announcement by Finance Minister Nirmala Sitharaman, stock markets benchmark indices shot up substantially. Sensex rose over 1,700 points, while NSE's Nifty50 index rose 500 points to 11,204.55. In a bid to boost the economy, Finance Minister Nirmala Sitharaman on Friday said that the government has decided to cut the corporate tax for domestic and new local manufacturing companies through an ordinance. Sitharaman announced that Modi government has cut in basic corporate tax rate to 22 percent from the earlier 30 percent. The cut has been even bigger for the new manufacturing companies at 15 percent from the previous rate of 25 percent.  The revenue loss due to reduction in corporate tax rate is estimated to be to the tune of Rs 1.45 lakh crore per year, the minister said.

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FM #NirmalaSitharaman के ऐलान के बाद बाजार को लगे पंख, #Nifty 11,200 के पार@AnilSinghvi_ @SwatiKJain pic.twitter.com/eutPGLlB1R

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"A domestic company can pay income tax at 22% if they dont seek any exemption or incentives. Effective Tax Rate 25.17% inclusive of all surcharges and cess for such domestic companies. Such companies also not required to pay Minimum Alternative Tax," the Minister said in a press briefing in Goa.

Watch Zee Business Video: Vedanta chief Anil Agarwal  reaction below:

कॉर्पोरेट इंडिया और देश की इकोनॉमी के लिए कितना बड़ा बूस्टर है FM का ऐलान जानिए वेदांता के चेयरमैन अनिल अग्रवाल से#CorporateTax @AnilSinghviZEE @AnilAgarwal_Ved pic.twitter.com/mdpapCyF58

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She also said that any new domestic company incorporated on or after October 1, 2019 making fresh investment in manufacturing has an option to pay tax at 15 percent if not seeking incentives and commence production before March 31, 2023.

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BSE के सभी सेक्टर्स में तेजी@AnilSinghvi_ @SwatiKJain #NiramalaSitharaman #Nifty #Sensex pic.twitter.com/jcGQkVejew

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Watch Zee Business Video: Expert Reacts:

शेयर बाजार की ये बस शुरूआत है, दिवाली के बाद भी बाजार और बढ़िया होगा : संजीव भसीन, इंडिया इंफोलाइन@sanjiv_bhasin @AnilSinghvi_ #CorporateTax pic.twitter.com/N1ZCkPEFZP

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In a relief to listed companies which have already made a public announcement of buyback before 5th July 2019, she said that there will be no tax on buyback of shares of such companies.