Published on 21/09/2019 9:16:58 AM | Source: Quantum Mutual Fund

Views On FM announcement in terms of direct tax cut for corporate India - Mr. Sorbh Gupta

Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel 

Download Telegram App before Joining the Channel

Below is the Views On FM announcement in terms of direct tax cut for corporate India by Mr. Sorbh Gupta. Associate Fund Manager, Quantum Mutual Fund


“ Market has reacted to positive announcement made by finance minister in terms of direct tax cut for corporate India. The effective tax rates will come down from 33-34% to 25%. It will clearly benefit earnings of most of the companies. Since earnings have gone up market has reacted positively and moved sharply. The govt has reduced   Minimum Alternate Tax (MAT) too and is now at  17% which will also benefit corporates . Further to this new companies doing fresh capex in the manufacturing sector will be taxed at 15% + surcharges which is much lower than current tax structure. This  will incentivize  companies for capex plans under new subsidiaries.  The economy is facing slowing consumer demand and crisis of confidence among lenders . We don’t think these problems will improve in near term as instead of giving instant bump up to consumption or shoring up confidence among lenders the government t is trying long route of more investments and more structure growth improvement.”


Above views are of the author and not of the website kindly read disclaimer