Budget 2017: Jaitley May Cut Taxes, Corporate Income Tax

INDORE, India - Jan. 27, 2017 - PRLog -- Finance Minister Arun Jaitley may look to spur consumption lessening taxes in the coming week's Budget. He may lower the MAT (Minimum Alternate Tax) from the existing rate of 18.5% in Budget 2017 as part of the government's broad strategy to redefine India's corporate income tax structure that is overwhelmed with layers of exemptions and incentives. The Minimum Alternate Tax cut extent will depend on the reduction in headline corporate income tax rate that the Finance Minister is expected to announce in the Budget.

Further, Corporate income tax rate is expected to be reduce by 1.25 to 1.5 percentage points to 28.75 - 28.5% in the Budget 2017, but will possibly remove a excess of exemptions that permit companies to cut down on their effective tax payouts.

The Minimum Alternate Tax is currently applied at a rate of 18.5% and goes up to 21.34% including cesses and surcharges. Tax deductions and exceptions have been tend to misuse and consequential litigation. Currently, there are 32 incentives applicable on corporate profits before calculating tax.

In November 2015, the government had laid down a complete roadmap for phasing out corporate tax exemptions by 2018 since it looks to reduce the tax rate, simplify the administration and brighten India's competitive edge globally.

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