New Income Tax Rate Option for Domestic Companies

It provides new domestic manufacturing companies with an option to pay income tax at the rate of 15%, provided they do not claim the deductions specified above. These new companies must be set up and registered after September 30, 2019, and start manufacturing before April 1, 2023.

  • The Taxation Laws (Amendment) Act, 2019 clarifies that certain businesses will not be considered as manufacturing businesses. These include businesses engaged in - development of computer software, book printing, production of cinematograph film, mining and any other business notified by the central government.
  • KABIL Set up to Ensure Supply of Critical Minerals.
  • On 1st August, a joint venture company namely Khanij Bidesh India Ltd. (KABIL) was set up with the participation of three CPSUs namely, National Aluminium Company Ltd. (NALCO), Hindustan Copper Ltd. (HCL) and Mineral Exploration Company Ltd. (MECL).
  • Its objective is to ensure a consistent supply of critical and strategic minerals to Indian domestic market.
  • The KABIL would carry out identification, acquisition, exploration, development, mining and processing of strategic minerals overseas for commercial use and meeting country’s requirement of these minerals. It will scout for strategic mineral assets abroad and 12 minerals have been identified. The initial focus will be on lithium and cobalt.
  • The sourcing of these minerals or metals is to done by creating trading opportunities, Government To Government (G2G) collaborations with the producing countries or strategic acquisitions or investments in the exploration and mining assets of these minerals in the source countries.
  • It will help in building partnerships with other mineral rich countries like Australia and those in Africa and South America.
  • The equity participation between NALCO, HCL and MECL is in the ratio of 40:30:30
  • The sustained source of mineral and metal commodities is imperative for the transportation and manufacturing segment.
  • Electric vehicles, segments like Aviation, Defence and Space Research require minerals with lower weight and high mechanical strength.
  • KABIL would ensure mineral security of the nation; it would also help in realizing the overall objective of import substitution.

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