Budget 2023 EXCLUSIVE: Govt may extend 15% corporate tax levy deadline beyond 31 March 2024

The government could extend timeline of 15 per cent corporate tax levy beyond 31 March 2024 in the upcoming Budget 2023, Zee Business’ Tarun Sharma reports citing his top sources. The tenure could be extended by one more year. In 2019 budget, the government had introduced a new scheme under which manufacturing companies who get registered on 1 October or later will get benefit of a lower corporate tax of 15 per cent.

This was in view of promoting the local manufacturing industry and the original deadline was to expire on 31 March 2023. However, Finance Minister Nirmala Sitharaman extended it by one year.

Sources have revealed to Zee Business that the government could extend it further in the upcoming budget.

The rationale behind this decison is in view of two important reasons - on is that 'The Development of Enterprises and Services Hub (DESH) Bill, 2022' for special economic zones is set to be shelved further; the other reason is to promote manufacturing in the country.     

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The government is planning to bring DESH Bill with a similar motive. The bill will cater to the the demands of manufactiring units set up in the SEZs with 15 per cent corporate tax. The industry was demanding tax incentives upto 2034, on which the revenue department was not in consonance.