In Corporate Tax Rate Cut, A 1.4 Lakh Crore Boost To Promote Growth ndtv.com

India cut tax on local businesses to one of the lowest rates in Asia, while providing a more than $20 billion boost to revive economic growth from a six-year low.
Tax on domestic companies will be lowered to 22% from a base rate of 30% currently, Finance Minister Nirmala Sitharaman said Friday. The effective new rate will be 25.2% including all additional levies and is applicable only for companies.

The new tax structure is effective from April 1, 2019. New companies formed from Oct. 1 will attract a base tax rate of 15%, she said.

The reduction in corporate tax rates follows a series of steps to boost demand and investments after growth slowed to 5% in the quarter ended June. The move puts India's tax rate on par with Asian peers and will boost efforts to attract investments as companies look for alternative destinations to sidestep supply chain disruptions from the U.S.-China trade war.