Insta
World Beyond Stock Market: Unlisted Firms Account For More Than Two-Thirds Of Corporate Tax Payments In FY18
Representative image. (Manoj Patil/Hindustan Times via Getty Images)
Listed companies in Indian stock exchanges accounted for less than a third of the total corporate tax paid to the government in FY18, as reported by Business Standard (BS). This year too represents a continuation of the downward trend in the metric over the last few years.
Listed companies are those whose shares are traded on an official stock exchange like BSE (Bombay Stock Exchange). These companies are expected to adhere to specific listing requirements like the number of shares that will be listed be on exchanges and also minimum income levels.
According to the I-T (Income Tax) Department, the total tax receipts increased by 17.8 per cent on a Y-O-Y (Year-On-Year) basis, rising to Rs 5.71 trillion in FY18. However, listed companies contributed only Rs 1.88 trillion of the total amount and data shows that the tax paid by India’s top 868 companies declined by 0.6 per cent over the last year.
While MSMEs (Medium Small and Micro Enterprises) in India, with revenues of less than 250 crores, are taxed at 25 per cent, larger firms follow the corporate tax rate of 30 per cent. However, making the 25 per cent rate for all companies in India is expected to boost economic growth and attract foreign investment.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest
