Corporate Tax rate proposals:

1. New manufacturing companies incorporated on or after 1.3.2016 to be given an option to be taxed at 25% + surcharge and cess provided they do not claim profit linked or investment linked deductions and do not avail of investment allowance and accelerated depreciation.

2.  Lower the corporate tax rate for the next financial year for relatively small enterprises i.e companies with turnover not exceeding ` 5 crore (in the financial year ending March 2015), to 29% plus surcharge and cess.

3. 100% deduction of profits for 3 out of 5 years for startups setup during April, 2016 to March, 2019. MAT will apply in such cases.

4. 10% rate of tax on income from worldwide exploitation of patents developed and registered in India by a resident.

5. Complete pass through of income-tax to securitization trusts including trusts of ARCs. Securitisation trusts required to deduct tax at source.

6.Period for getting benefit of long term capital gain regime in case of unlisted companies is proposed to be reduced from three to two years.

7. Non-banking financial companies shall be eligible for deduction to the extent of 5% of its income in respect of provision for bad and doubtful debts.

8. Determination of residency of foreign company on the basis of Place of Effective Management (POEM) is proposed to be deferred by one year.

9. Commitment to implement General Anti Avoidance Rules (GAAR) from 1.4.2017.

10. Exemption of service tax on services provided under Deen Dayal Upadhyay Grameen Kaushalya Yojana and services provided by Assessing Bodies empanelled by Ministry of Skill Development & Entrepreneurship.

11. Exemption of Service tax on general insurance services provided under ‘Niramaya’ Health Insurance Scheme launched by National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disability.

12. Basic custom and excise duty on refrigerated containers reduced to 5% and 6%.