Despite unavailability of MAT credit, 60% of firms opt for lower tax regime

In absolute terms, around 300,000 companies are now at the 22% rate, against the earlier 25-30% earlier

Around 60 per cent of taxpaying companies have moved to the government’s offer of a lower corporation tax regime, according to initial estimates of the income-tax department. In absolute terms, around 300,000 companies are now at the 22 per cent rate, against the earlier 25-30 per cent earlier.

The finance minister announced the option in September, with a shift to the lower tax regime being contingent on a company forgoing specified exemptions and incentives.

With this, the government is expecting around Rs 1 trillion of forgone revenue in 2019-20, less than the initially estimated loss of Rs 1.45 trillion. 

Around