The top 1,000 publicly traded companies can see tax savings of Rs 37,000 cr post corporate cut-off: CRISIL
New Delhi, September 22 () CRISIL Research said Sunday that the top 1,000 publicly traded companies could see tax savings of Rs 37,000 crore due to corporate tax cuts.
In recent days, a series of measures have been introduced to address the slowdown of the Indian economy. However, Friday's announcement is the most important ... Our analysis indicates that these 1,000 companies could see tax savings of Rs 37,000 crore, or almost a quarter of the total savings planned by the government, it said in a statement.
The drop in the tax rate would now put India on par with most Asian economies, he added.
CRISIL Research's analysis of nearly 1,000 companies, distributed in more than 80 sectors so that they cover more than 70 percent of NSE's market capitalization, indicates that effective tax rates have increased over the past 5 years, he said.
These companies, including financial and oil and gas services, account for almost a third of the tax paid by India Inc.
These estimates are based on earnings before taxes for fiscal year 2019. Since we expect a 5-6% growth in income and Ebitda (earnings before interest, taxes, depreciation and amortization) of India Inc for this year fiscally, the savings could end up a little higher, he added. In an important fiscal reinforcement, the government cut the effective corporate tax on Friday at 25.17 percent, including all terminations and surcharges for national companies. SRS HRS