15,080 profitable Indian companies paid no tax in 2015-16

Tax incentives allowed 15,080 profit-making Indian companies to have effective tax rates of zero, and in some cases less than zero, in 2015-16, according to an IndiaSpend analysis of the latest available national tax data or more specifically a government analysis called the Revenue Impact of Tax Incentives under the Central Tax System. The central government introduced a minimum alternate tax (MAT) in the late 1980s to tackle this anomaly, but even MAT has exemptions that appear to have negated its original intent partially: 52,911 companies made profits in 2014-15 and paid no tax, IndiaSpend reported in March 2016. Nifty Trading Tips

Larger corporates paid lower tax rates than smaller ones for 2015-16

Effective tax rate is the tax rate actually paid by companies on profits, calculated as tax actually paid divided by profits before tax. While effective tax rates rose between 2012-13 and 2015-16, many exemptions remain, especially for larger companies. For instance, corporates have a statutory tax rate of 34.47%, which they must pay on profits. The effective tax rate in 2015-16 was 28.24%, higher than it was in 2014-15 (24.67%). Future & Option Trading Tips