With more economic activity entering the tax net post demonetisation, government should lower the corporate tax rate to 18 per cent, said CII in its pre-Budget memorandum to the Finance Ministry. The current corporate tax rate works out to be 30 per cent plus cess and surcharge. CII noted that there are 32 incentives applicable on corporate profits before calculating tax. The effective tax rate works out to about 19.8 per cent. “we believe that lowering the tax rate to 18 per cent and removing all tax exemptions will not negatively impact government revenues on this head,” they said. [may be incentive can be added again!]. Finance Minister Arun Jaitley had announced in his 2015 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.
— source economictimes.indiatimes.com