“ The cut in corporate tax rate was much needed reform but has been ill timed “

India’s taxation system is the most criticized. If we look into our economy the main reason that our country is not developing or prospering is because of the ill allocation of policies and systems. If we take India’s taxation system into account there are several issues that this system faces. Several forms of taxes are taken by the government but the form of tax collection needs to be changed. Even though our tax rates are simplified with various implementations there need to be several other changes that need to be made .last year the corporate tax was reduced to 22 % from 30 %. The main aim before reducing the corporate tax was to increase and open up the investment opportunities for the corporates. The more the investment the more will be the growth of the economy and if there is growth in the economy the Indian firms will have less capital invested on tax and more capital invested on bonds and other things that will boost the overall growth of the company as well as the country . investment will, in turn, increase productivity in the country it will eventually then increase more employment opportunities, enhances the exports.

 Tax Reduction Advantages :

• With the decrease in the tax rates, the companies are now more open towards the creation of more company asset's and it will help in the reduction of the liabilities of the companies as well.
• If we look into previous tax rates that were 30 % paying such huge tax amount for the small budding companies used to be difficult even though the small manufacturing companies as the reduction in tax rates will increase the profits of the company but the issue was whether to opt for the new tax rates or deal with the loss that is already there.
• Depreciation amount that can be claimed by the companies at a normal rate is up to 15% in the first year. any manufacturing company can claim an additional 20 % depreciation on the newly installed plants and machinery, adding both the depreciation together a total of 35% depreciation amount can be claimed.
• The firms that are making losses and have recently invested in a few technology or assets. it’s the discretion of the companies whether to choose the new tax regime or the older one.
• But if the companies opt to choose the new tax regime no doubt that the company can earn more profits with less tax but the depreciation exemptions claimed so far that is not received cannot be acquired by the companies if they opt for the new tax regime