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Sensex Surges 1,921 Points After Govt Announces Cut In Corporate Tax Rates

In a major booster to the market, the government has decided to not levy the enhanced surcharge introduced in the Budget on capital gain arising on sale of equity shares in a company liable for securities transaction tax.

Domestic equity benchmark BSE Sensex skyrocketed over 1921.15 points to end at 38,014.62 on Friday after Finance Minister Nirmala Sitharaman announced a slew of measures to revive the ailing economy.

The 30-share index zoomed 5.32 per cent, to 38,014.62, while the broader Nifty rose 569.40 points, or 5.32 per cent, to 11,274.20.

In a major booster to the market, the government has decided to not levy the enhanced surcharge introduced in the Budget on capital gain arising on sale of equity shares in a company liable for securities transaction tax.

Also, the super-rich tax will not to apply on capital gains from sale of any security including derivatives in hands of foreign portfolio investors.

In another relief, the minister said listed companies which have announced buyback of shares prior to July 5 will not be charged with super rich tax.

The government has also slashed corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic companies.

Sitharaman said the revenue foregone on reduction in corporate tax and other relief measures will be Rs 1.45 lakh crore annually.

This, she said, is being done to promote investment and growth.

(With inputs from PTI)

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