Corporate tax has been a dynamic area of India's fiscal policy, undergoing significant reforms to adapt to economic needs, global competitiveness, and ease of doing business. The recent rate cuts and DDT abolition were landmark steps to stimulate growth.

• 1961Income Tax Act, 1961: Established the legal framework for corporate taxation in India.
• 1987Introduction of Minimum Alternate Tax (MAT): To ensure companies showing book profits pay a minimum tax.
• 1991Economic Liberalization: Led to gradual rationalization of corporate tax rates over the years to attract investment.
• 1997Introduction of Dividend Distribution Tax (DDT): Tax on companies distributing dividends, aimed at simplifying shareholder taxation.
• 2015Commitment to Phased Reduction of Corporate Tax: Government announced a plan to reduce corporate tax from 30% to 25% over four years.
• 2019Historic Corporate Tax Rate Cuts: Reduced rates to 22% for existing companies (without exemptions) and 15% for new manufacturing companies to boost investment.
• 2020Abolition of Dividend Distribution Tax (DDT): Dividends made taxable in the hands of shareholders, simplifying tax structure and attracting FIIs.
• 2022Faceless Assessment Scheme for Corporate Tax: Enhanced transparency and efficiency in corporate tax assessments.
• 2024-25Corporate Advance Tax Slowdown: Reflects potential moderation in corporate profitability despite previous rate cuts (Current News Context).

Corporate tax has been a dynamic area of India's fiscal policy, undergoing significant reforms to adapt to economic needs, global competitiveness, and ease of doing business. The recent rate cuts and DDT abolition were landmark steps to stimulate growth.

• 1961Income Tax Act, 1961: Established the legal framework for corporate taxation in India.
• 1987Introduction of Minimum Alternate Tax (MAT): To ensure companies showing book profits pay a minimum tax.
• 1991Economic Liberalization: Led to gradual rationalization of corporate tax rates over the years to attract investment.
• 1997Introduction of Dividend Distribution Tax (DDT): Tax on companies distributing dividends, aimed at simplifying shareholder taxation.
• 2015Commitment to Phased Reduction of Corporate Tax: Government announced a plan to reduce corporate tax from 30% to 25% over four years.
• 2019Historic Corporate Tax Rate Cuts: Reduced rates to 22% for existing companies (without exemptions) and 15% for new manufacturing companies to boost investment.
• 2020Abolition of Dividend Distribution Tax (DDT): Dividends made taxable in the hands of shareholders, simplifying tax structure and attracting FIIs.
• 2022Faceless Assessment Scheme for Corporate Tax: Enhanced transparency and efficiency in corporate tax assessments.
• 2024-25Corporate Advance Tax Slowdown: Reflects potential moderation in corporate profitability despite previous rate cuts (Current News Context).