India slashes corporate tax to fire up economy, Dalal street responds with a massive surge.

Diwali came early for India Inc and the bourses after the Centre slashed effective corporate tax to 25.17 per cent. Indian  Finance Minister says the new rates would be "comparable with the lowest tax rates in South Asian region and in South East Asia". The announcement sent shares soaring more than five percent in Mumbai -- the biggest jump in 10 years .

Here's what India FM announced on Friday,  20^th Sept :

• Domestic company to pay income tax at the rate of 22% subject to condition they will not avail any incentive or exemptions. 

• Manufacturing companies set up after October 1 to get option to pay 15% tax. Effective tax rate for new manufacturing firms to be 17.01% inclusive of surcharge & tax.

• Listed companies that have announced buyback before July 5, 2019, tax on buyback of shares will not be charged.

• Higher surcharge will also not apply on capital gains on sale of security including derivatives held by FPIs.

• Enhanced surcharge will not apply to capital gains arising on equity sale or equity-oriented funds liable to STT stabilise flow of funds into capital markets.

• To provide relief to companies availing of concessions and benefits, a MAT relief by reducing it from 18% to 15%.

• CSR 2% spending to include government, PSU incubators and public funded universities, IITs, National  Labs & autonomous  bodies engaged in  research in science, technology, engineering & medicines. 

The following graphics from Eco times of India  sums it all.