Finance Minister Nirmala Sitharaman on Friday proposed widening the lower corporate tax rate of 25 percent to cover companies with an annual turnover of up to Rs 400 crore, up from the current limit of Rs 250 crore.

What was proposed

Sitharaman told the Lok Sabha, while presenting the Union Budget 2019-20, that the change would bring 99.3 percent of companies operating in India under the lower rate. Only 0.7 percent of firms would remain outside the 25 percent bracket.

• Old turnover limit for the 25 percent rate: Rs 250 crore
• New turnover limit proposed: Rs 400 crore
• Share of companies covered: 99.3 percent
• Corporate tax rate for other firms: 30 percent

Background

The Budget was presented weeks after Narendra Modi was sworn in for a second term as Prime Minister on 30 May 2019, following an election in which the BJP won 303 of the 543 Lok Sabha seats.

See also: Bharatiya Janata Party | Election news

Originally published on 6 July 2019. Rewritten on 9 October 2026.

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