Union Budget 2024: Extension of concessional corporate tax for new manufacturing units
Tax advisory firm PWC has asked the NDA administration to prolong the concessional corporate tax rate of 15%, which expired in March 2024 with the end of FY24. Section 115BAB of the Income Tax Act provides a 15 percent tax break for new domestic manufacturing companies.
LD Web Desk 
The Indian government is considering extending the concessional 15% corporate tax rate for new manufacturing units. Currently, this rate is available for new domestic manufacturing companies that commence production before March 31, 2024. The proposed extension would push this deadline to March 31, 2025, in an effort to boost private investment and encourage the growth of the manufacturing sector in India (PwC).
This measure, initially introduced in 2019, aims to stimulate investment and economic growth by offering a reduced tax rate for new manufacturing ventures. Experts believe that extending the sunset clause for this tax rate could significantly enhance foreign direct investment and help align with the 'Make in India' initiative .
The anticipated Union Budget for 2024-25, to be presented by Finance Minister Nirmala Sitharaman, is expected to focus on these and other measures to foster a favorable business environment, simplify tax compliance, and support the broader economic goals of the country
