This issue of LexCognito, which in Latin means 'awareness about law', seeks to provide you an insight into significant legal and regulatory developments that have taken place very recently in India.

Date: 21 September 2019
Big Tax Announcements by Finance Minister
The Finance Minister of India yesterday announced big relieves for corporates in an attempt to provide an impetus to the sagging economy by introducing the Taxation Laws (Amendment) Ordinance, 2019. A summary of announcement is as follows: 
  1. Corporate tax rate to be reduced to 22%+surcharge for companies which do not operate under any exemption/incentive scheme and the effective corporate tax rate after surcharge for such companies will be 25.17%. Such companies will also not be required to pay Minimum Alternate Tax (MAT);
  2. The Minister has stated that the companies already operating under incentive schemes may avail the reduced tax rate after completing the exemption period;
  3. The effective tax rate for a new company setting up from October 2019 shall be 17.1%;
  4. Minimum Alternate Tax (MAT) is proposed to be reduced to 15% from present 18.5%;
  5. Enhanced surcharge announced earlier shall not apply on capital gains arising on sale of any securities including derivatives in the hands of foreign portfolio investors (FPIs);
  6. Buyback tax for listed companies announcing buybacks pre-July 5, 2019 will not be exempted;
  7. Enhanced surcharge will not apply to capital gains arising on equity sale or equity-oriented funds liable to Securities Transaction Tax;
  8. The 2% spend requirement towards CSR will also include permitted spending on government schemes, PSU incubators and public funded education entities, IITs etc.
LexCognito - Our Legal Newsletter
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Chambers of Rajan & Indraneel 
T: +91 11 41000224, 41030225| Fax:+91 11 29239074 
Mobile: +91 9810404086 
N 103 Greater Kailash - I, New Delhi - 110048, India.
About us
Chambers of Rajan & Indraneel is a premier full service law firm headquartered at New Delhi, India. The Firm represents amalgamation of vast experiences and practices of two eminent lawyers. Indranil Ghosh is highly reputed as a disputes lawyer. He was a senior partner and head of litigation practice in one of the oldest Indian law firm Fox Mandal for several decades before setting up his own practice. Rajan D Gupta is a rank holder Chartered Accountant turned Corporate Lawyer. He is also a licensed Insolvency Resolution Professional. He has been associated with internationally renowned big law firms in past and has held senior level positions in firms like PwC, Fox Mandal, Khaitan & Co. and SRGR Law, etc. before starting the Firm.

We have a team of experienced Lawyers, Chartered Accountants, Company Secretaries and Insolvency Resolution Professionals with access to network of high quality experienced lawyers in all major commercial cities of India.

The Firm offers a wide range of expert legal services in the areas of corporate and commercial laws and specializes in representing major foreign and domestic corporations with diverse business interests in India. The Firm is professionally equipped to handle large sized and complex corporate transactions like Mergers & Acquisitions, Corporate Restructuring, Joint Ventures, Inbound & Outbound Investments, Private Equity and Venture Capital Investment Transactions, Real Estate Transactions, Infrastructure Projects, Project Finance, Power Projects, Non-Conventional Energy Projects, Highways & Road Projects and Corporate Taxation as well as GST, etc. The Firm also offers proven capabilities in litigation and dispute resolution practice areas, especially in handling international and domestic arbitrations as well as litigation in Supreme Court, various High Courts of India and various judicial and quasi-judicial tribunals/forums including at National Client Law Tribunal, Appellate Tribunals, Tax Tribunals, Competition Commission, Electricity Tribunal, Telecom Disputes Tribunal, Designated Authorities and other adjudicatory bodies.

We have set up a Japan Business Desk (JBD) in order to serve our Japanese clients in a better way. The endeavour of the JBD is to act as a bridge between our professionals and clients from Japan so as to ensure that there are no barriers as to linguistic and cultural differences. This will indeed facilitate Japanese corporates doing business in India. 
This newsletter contains general information available in public domain at the time of its preparation. It is intended as a general news update and is not intended to be comprehensive nor to provide specific business, financial, investment, legal, tax or other professional advice or opinion or services. This newsletter is not a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any decision or action that may affect you or your business. Before making any decision or taking any action that may affect you or your business, you should consult a qualified professional adviser and refer to the source pronouncement/documents on which this business alert is based. It is also expressly clarified that this newsletter is neither a solicitation nor an invitation of any sort whatsoever or a source of advertising from our firm or any of its partners or lawyers or other professionals to create any adviser-client relationship. Whilst every effort has been made to ensure the accuracy of the information contained in this news alert, this cannot be guaranteed, and neither our firm nor any related person/entity shall have any liability to any person or entity that relies on the information contained in this publication. Any such reliance is solely at the user's risk.
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Chambers of Rajan & Indraneel · G-68 LGF, East of Kailash · New Delhi, Delhi 110065 · India

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