India to lower corporate tax rates, ease merger rules
13 Aug 2009
The Direct Tax Code presented in Parliament by finance minister Paranab Mukherjee on Wednesday proposes to trim corporate tax rates to 25 per cent, phase out exemptions, and simplify corporate merger rules.
The draft code proposes to cut the corporate tax rate to 25 per cent from 30 per cent. The tax rate would be 15 per cent for non-profit making organisations, and 30 per cent for local authorities and unincorporated bodies.
The draft tax code also seeks to phase out all profit-linked incentives for businesses and instead link incentive to investments.
The new rules also would allow businesses to carry forward losses indefinitely. Merger and acquisition rules would also be rationalised to allow "tax-neutral" business reorganisation.
Personal Income Tax Rates
In the case of every individual, other than specified or a Hindu undivided family:
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