Concession for foreign firms, no digital tax

NEW DELHI: Finance minister Nirmala Sitharamana on Tuesday while presenting the Union Budget for 2024-25 proposed to reduce the corporate tax rate on foreign companies from 40% to 35% to attract foreign capital for India’s development needs.

In addition to this, she announced withdrawal of the 2% equalisation levy or digital tax. She said the proposal has been made in the Finance Bill and the levy shall no longer be applicable on or after August 1, 2024. In a bid to provide level playing field for local digital businesses, equalisation levy was introduced in 2016, to tax non-resident digital companies providing services to Indian firms.