Finance Ministry lowers taxes for corporates, small businesses to boost growth, employment

The Revenue Department of the Ministry of Finance has taken several measures to boost-up growth and employment.

Some of the steps taken are lowering the Corporate tax rates to 25% for new manufacturing companies, extending tax benefits for housing sector so as to promote construction industry, rate of tax on royalty and fees for technical services reduced from 25% to 10%, Tax incentives for Start-up India, etc.

Similarly, it has taken various steps to give relief to the small tax payers and to the small business and professionals.

The limit of deduction that can be claimed under section 80C of Income tax Act 1961 has been enhanced from Rs 1 lakh per annum to Rs 2 lakh per annum, subject to the additional Rs 50,000 being contributed to NPS.

Further, the scope of presumptive taxation regime for small businesses has been extended by increasing the turnover up to Rs 2 crores. The presumptive taxation benefit is now available for professionals having turnover upto Rs 50,00,000.