Finance Ministry extends deadline for comments on corporate tax reduction

New Delhi: In a bid to give stakeholders sufficient time to study the plan, the Finance Ministry has extended the deadline to give comments on the roadmap for corporate tax exemption by over three weeks till December 31.

"We would like all stakeholders to study and give their views on draft exemption phase-out plan placed in public domain. “In order to give them sufficient time, the last date forgiving views is extended to December 31, 2015," Revenue Secretary Hasmukh Adhia tweeted.

The Finance Ministry had on November 20 proposed a roadmap for ending various tax exemptions currently enjoyed by the industry as a precursor to gradual bringing down of corporate tax rate to 25 per cent from 30 per cent at present.

It had then given 15 days time for stakeholders to comment on it. According to the roadmap, sunset clauses with regards to tax exemptions will be renewed and no weighted deduction will be allowed for any specified business activity from April 1,2017 onwards.

“The profit-linked, investment-linked and area-based deductions will be phased out for both corporate and non-corporate tax payers", it added.

Finance Minister Arun Jaitley had announced in his last Budget speech that the rate of corporate tax will be reduced from 30 per cent to 25 per cent over the next four years along with corresponding phasing out of exemptions and deductions.

This, he had said, was a step towards simplification of tax laws, which is expected to bring about transparency and clarity.