SMEs to pay 25% tax even if Rs 50-crore limit crossed in FY17: CBDT

Yardstick after FY18 to be decided by Finance Bills of those years

While companies that had up to Rs 50 crore of turnover in 2015-16 will be taxed at the reduced rate of 25% in 2017-18, even if they crossed the threshold in subsequent years, the yardstick for reduced corporation tax rate after FY18 will be decided by the Finance Bills of those years.

“If Finance Bills after 2017 retain this provision, the reduced rate of 25% will continue for companies with turnover of up to Rs 50 crore in 2015-16. If amended, the changed rules will apply,” Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra told this newspaper.