A complete Rs 2.28 lakh crore was misplaced in tax income within the 2019-20 and 2020-21 monetary years on account of discount in company tax from 30% to 22%, the federal government advised Parliament on Tuesday.
The concessional tax regime was launched within the 2020 Finances to put off exemptions or deductions in company tax. The tax fee was diminished from 30% to 22% in 2019-20 beneath Part 115BAA of the Earnings-tax Act as a part of the concessional tax regime.
Replying to a query within the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary mentioned 62% of the reported aggregated whole earnings of all corporations has opted for the brand new concessional tax scheme for 2019-20.
This was additionally maintained alongside the identical traces within the 2020-21 when 61% of the reported aggregated whole earnings of all corporations had opted for the concessional tax scheme, he mentioned.
Based mostly on the above talked about developments in taxpayer migration and neglecting the affect of non-availability of exemptions beneath this regime, the Ministry of Finance estimates a income loss on account of the company tax fee discount at Rs 1,28,170 crore in 2019-20 and Rs 1,00,241 crore in 2020-21, Chaudhary mentioned.
Chaudhary mentioned there was no proposal to revise the speed of company tax to beat this income loss and the expansion of company tax assortment would make up for any loss.
The present 12 months additionally shows buoyancy in company tax assortment on account of financial progress and new funding on account of discount in company tax, in response to Chaudhary.
In 2021-22, there was a resurgence in company tax assortment, which reveals progress of about 56% as in comparison with the tax assortment of 2020-21, he mentioned.
“It could be famous that the company tax assortment of FY 2021-22 of Rs 7.12 lakh crore is even increased than the company tax assortment of FY 2018-19,” Chaudhary mentioned.