D👑Queen: Now the 5th impact area in our coverage. I'd like you to spend time on the impact of Budget 2016 on companies and businesses. We have had lots of questions on this topic, can you address the main ones?
⚖Advocate VV: The FM true to his promise last year, began the process of phasing out corporate tax exemptions. However, he restricted marginal reduction in corporate taxes to only small companies❗ Jaitley lowered⬇ the corporate tax rate for companies with a turnover of ₹ 5cr or less to 29% from 30%...Sorry, no such luck for "big" companies....at least not yet 😃
The FM 📢 a corporate tax rate at 25% for all new manufacturing companies incorporated from 1 April - provided they don't claim any exemptions. In my view a 25% tax rate without exemptions may be a good idea, because in reality most exemptions were being scrutinized, litigated and fought over between taxpayers and the department❗
The FM for the first time in 🇮🇳 history introduced a special patent regime with 10% rate of tax on income from worldwide exploitation of patents developed and registered in 🇮🇳. Pharma companies reacted positively 👏 saying it will spur local innovation and manufacturing; in general taxes are at 35% and 10% tax will be a significant boost⬆