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Union MoS for Finance and BJP MP Pankaj Chaudhary speaks in Lok Sabha in the course of the Monsoon Session of Parliament, in New Delhi | Photo Credit: ANI
Corporate tax charges have been regularly decreased since 2016 whereas phasing out the exemptions and incentives.
In a written reply within the Rajya Sabha, Chaudhary gave the estimated income forgone as a result of tax incentives by means of varied deductions in company tax, from FY 2019-20 to 2023-24.
The company tax income foregone in 2023-24 stood at ₹98,999, adopted by ₹88,109 crore and ₹96,892 crore in 2022-23 and 2021-22, respectively.
In 2020-21 and 2019-20, the full company tax income foregone was ₹75,218 crore and ₹8,043 crore respectively.
The minister was replying to a query from AAP MP Raghav Chadha on the estimated loss to the exchequer as a result of company tax reductions from 2019-20 to 2024-25, and for the monetary 12 months (2024-25).
Estimated income foregone for the monetary 12 months 2024-25 until date is just not obtainable, Chaudhary mentioned.
Through Finance Act, 2016, the company tax charges have been decreased to 29% of the full revenue to advertise progress, increase funding and create extra job alternatives.
In 2017, the company tax charges have been decreased to 25% of the full revenue, make smaller home corporations having annual turnover of ₹50 crores extra viable and to encourage corporations emigrate to firm format.
In September 2019, the federal government introduced a reduce in base company tax for then current corporations to 22% from 30%; and for brand new manufacturing corporations, included after October 1, 2019, to fifteen% from 25%, supplied they forego all exemptions and incentives.
Vide Finance Act, 2024, tax charges on the revenue of international corporations (apart from that chargeable at particular charges) have been decreased from 40% to 35% to advertise funding and employment.
Published – July 22, 2025 10:33 pm IST
