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The Hindu
an hour ago
- Business
- The Hindu
Corporate tax revenue foregone at ₹99,000 crore in FY24: MoS Finance
The government is estimated to have forgone around ₹99,000 crore in revenue in the 2023-24 fiscal on account of tax incentives extended to corporates, Minister of State for Finance Pankaj Chaudhary said on Tuesday (July 22, 2025). Corporate tax rates have been gradually reduced since 2016 while phasing out the exemptions and incentives. In a written reply in the Rajya Sabha, Chaudhary gave the estimated revenue forgone due to the tax incentives by way of various deductions in corporate tax, from FY 2019-20 to 2023-24. The corporate tax revenue foregone in 2023-24 stood at ₹98,999, followed by ₹88,109 crore and ₹96,892 crore in 2022-23 and 2021-22, respectively. In 2020-21 and 2019-20, the total corporate tax revenue foregone was ₹75,218 crore and ₹8,043 crore respectively. The minister was replying to a question from AAP MP Raghav Chadha on the estimated loss to the exchequer due to the corporate tax reductions from 2019-20 to 2024-25, and for the financial year (2024-25). Estimated revenue foregone for the financial year 2024-25 till date is not available, Chaudhary said. Through Finance Act, 2016, the corporate tax rates were reduced to 29% of the total income to promote growth, boost investment and create more job opportunities. In 2017, the corporate tax rates were reduced to 25% of the total income, make smaller domestic companies having annual turnover of ₹50 crores more viable and to encourage firms to migrate to company format. In September 2019, the government announced a cut in base corporate tax for then existing companies to 22% from 30%; and for new manufacturing firms, incorporated after October 1, 2019, to 15% from 25%, provided they forego all exemptions and incentives. Vide Finance Act, 2024, tax rates on the income of foreign companies (other than that chargeable at special rates) have been reduced from 40% to 35% to promote investment and employment.
Business Recorder
3 hours ago
- Business
- Business Recorder
COAS Munir instructs FBR to have dialogue with businessmen over arrest powers, penalties: FPCCI
While focusing on the recently enacted expansions of the Federal Board of Revenue's (FBR) powers, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh with the trade and industry's delegation met Chief of Army Staff (COAS) Field Marshal Syed Asim Munir, NI (M). who assured them of his full support for the economic growth of the country, according to a FPCCI statement on Tuesday. The development comes days after Pakistan's two largest cities - Karachi and Lahore - faced partial and complete market closures over a strike call by traders against what they called 'anti-business' tax measures introduced in the Finance Act 2025. Karachi, Lahore hit by strike against 'anti-business' tax measures In the Finance Act, the government expanded the FBR powers with Sections 37A and 37B, which empower the tax authority officials with arbitrary arrests; Section 21(S), which imposes harsh penalties on cash transactions of Rs200,000 or more; mandatory digital invoicing under SRO 709; and the imposition of e-Bilty under Section 40(C). 'Mr Atif Ikram Sheikh maintained that the business community is immensely thankful to Field Marshal Asim Munir for immediately directing that the new provisions; particularly those added under Sections 37A and 37B of the Sales Tax Act 1990, pertaining to arrest and detention; be held in abeyance; and, for instructing the FBR to enter meaningful and solution-oriented dialogue with stakeholders and address their concerns,' the FPCCI statement read. The statement further said the delegation had presented a comprehensive overview of the challenges faced by the industrial sector – with particular emphasis on the recently enacted expansions of the FBR's powers. 'Additionally, the GHQ will support economic activities in the country through the platform of Special Investment Facilitation Council (SIFC); fostering an environment of collaboration and trust.' The business community's delegation also called for interest rates to be brought down in line with inflation to stimulate businesses and economic activities. It also highlighted the delay in notification of the Export Facilitation Scheme (EFS) amendments relating to exclusion of cotton and cotton yarn from the scheme; and, imposition of an 18% sales tax on their imports, according to FPCCI statement.
Mint
3 hours ago
- Business
- Mint
Govt foregoes ₹99,000 crore corporate tax revenue in FY24, says MoS Finance. Here's why
The government has foregone nearly ₹ 99,000 crore in revenue during the 2023-24 fiscal year due to tax incentives provided to corporates, PTI reported Minister of State for Finance Pankaj Chaudhary. The minister, in a written reply at the Rajya Sabha, provided estimates of the revenue lost due to tax incentives, including various corporate tax deductions, from FY 2019-20 to 2023-24. The government waived ₹ 98,999 crore tax revenue in 2023-24, compared to ₹ 88,109 crore in 2022-23 and ₹ 96,892 crore in 2021-22. In the fiscal years 2020-21 and 2019-20, the total amount of corporate tax revenue foregone was ₹ 75,218 crore and ₹ 8,043 crore, respectively. The minister shared the data on corporate tax revenue foregone, in response to a question from AAP MP Raghav Chadha on the estimated loss to the exchequer due to the corporate tax reductions from 2019-20 to 2024-25. Chaudhary said that the estimated revenue foregone for the financial year 2024-25 till date is not available. Since 2016, corporate tax rates have gradually decreased as exemptions and incentives are phased out. The Finance Act, 2016, lowered corporate tax rates to 29% of total income with the aim to encourage growth, increase investment, and generate more employment. The corporate tax rate was lowered to 25 per cent of total income in 2017, with the goal of benefiting smaller domestic companies with an annual turnover of ₹ 50 crores and making it more attractive for firms to adopt a company structure. In September 2019, the government announced a reduction in the base corporate tax rate, lowering it to 22 per cent from 30 per cent for existing companies. For new manufacturing firms incorporated after October 1, 2019, the rate was decreased to 15 per cent from 25 per cent, on the condition that they forgo all exemptions and incentives.
Mint
4 hours ago
- Business
- Mint
Govt foregoes ₹99,000 crore corporate tax revenue in FY24, says MoS Finance. Here's why
The government has foregone nearly ₹ 99,000 crore in revenue during the 2023-24 fiscal year due to tax incentives provided to corporates, PTI reported Minister of State for Finance Pankaj Chaudhary. The minister, in a written reply at the Rajya Sabha, provided estimates of the revenue lost due to tax incentives, including various corporate tax deductions, from FY 2019-20 to 2023-24. The government waived ₹ 98,999 crore tax revenue in 2023-24, compared to ₹ 88,109 crore in 2022-23 and ₹ 96,892 crore in 2021-22. In the fiscal years 2020-21 and 2019-20, the total amount of corporate tax revenue foregone was ₹ 75,218 crore and ₹ 8,043 crore, respectively. The minister shared the data on corporate tax revenue foregone, in response to a question from AAP MP Raghav Chadha on the estimated loss to the exchequer due to the corporate tax reductions from 2019-20 to 2024-25. Chaudhary said that the estimated revenue foregone for the financial year 2024-25 till date is not available. Since 2016, corporate tax rates have gradually decreased as exemptions and incentives are phased out. The Finance Act, 2016, lowered corporate tax rates to 29% of total income with the aim to encourage growth, increase investment, and generate more employment. The corporate tax rate was lowered to 25 per cent of total income in 2017, with the goal of benefiting smaller domestic companies with an annual turnover of ₹ 50 crores and making it more attractive for firms to adopt a company structure. In September 2019, the government announced a reduction in the base corporate tax rate, lowering it to 22 per cent from 30 per cent for existing companies. For new manufacturing firms incorporated after October 1, 2019, the rate was decreased to 15 per cent from 25 per cent, on the condition that they forgo all exemptions and incentives. Under the Finance Act, 2024, tax rates on the income of foreign companies, excluding those charged at special rates, have been reduced from 40 per cent to 35 per cent to encourage investment and employment.
Indian Express
5 hours ago
- Business
- Indian Express
Income Tax Appellate Tribunal dismisses Congress appeal against Rs 199 crore tax assessment
Denying relief to the Indian National Congress, the Income Tax Appellate Tribunal (ITAT) on Monday dismissed an appeal by the party against a tax demand of ₹199.15 crore for the year 2018-19. Late return filing and violations of cash donation limits were among the main grounds due to which the ITAT rejected the party's claim for tax exemption. 'The assessee's return filed on 02.02.2019 is not within the 'due' date to make it eligible for the impugned exemption,' ruled the coram on July 21. The INC had filed its income tax return on February 2, 2019 – over a month after the extended due date of December 31, 2018, prescribed under the IT Act. It had declared income after claiming an exemption of Rs. 199.15 crores. Another issue that the ITAT looked at was a violation of cash donation limits. According to scrutiny proceedings, the party had received ₹14.49 lakh in cash donations exceeding ₹2,000 from various individuals. Donations above ₹ 2,000 can only be received through banking channels like account payee cheques or electronic transfers as per the Finance Act, 2017. 'As per section 13A(d) of the Act, donation in excess of ₹2,000/- is mandatorily be received through a/c payee cheque/draft or through electronic mode and therefore donation in excess of ₹2,000/- received in cash violates provisions of clause (d) of first proviso to section 13A of the Act,' the ITAT order stated. The Congress tried to find respite in Section 139(4) of the IT Act which states that if an individual misses the ITR filing deadline, they can still file a belated return, subject to penalties. The ITAT, however, denied it relief. '…it is manifestly clear that the legislature has incorporated the statutory expression therein as 'within the time allowed under that section' i.e. section 139(1) as well as u/s 139(4)…we thus reject the assessee's instant first and foremost substantive grievance in very terms and decide the above first question framed between the parties; in the department's favour,' the tribunal ruled.
