Bills on corporate tax, unified regulator for IFSCs in Lok Sabha today

The government will introduce two important Bills in the Lok Sabha on Monday -- the Taxation Laws Bill and the International Financial Services Centres Authority Bill. A new provision was inserted in the Income Tax Act that with effect from the current financial year, an existing domestic company can opt to pay tax at 22 per cent plus surcharge at 10 per cent and cess at 4 per cent if it does not claim any exemption. The same Cabinet meeting also approved the introduction of International Financial Services Centres Authority Bill, 2019, in the Lok Sabha after its withdrawal from the Rajya Sabha. In order to promote growth and investment, a new provision was inserted in the IT Act to provide that with effect from the current financial year, an existing domestic company may opt to pay tax at 22 per cent plus surcharge at 10 per cent and cess at 4 per cent if it does not claim any incentive/deduction. In order to attract fresh investment in manufacturing and provide a boost to the 'Make in India' initiative of the government, another provision was inserted to the IT Act to provide that a domestic manufacturing company set up on or after October 1, 2019 and which commences manufacturing by March 31, 2023, may opt to pay tax at 15 per cent plus surcharge at 10 per cent and cess at 4 per cent if it does not claim any incentive/deduction.