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How the tax rate cut will impact earnings of top listed companies

The cut in corporation tax will give a one-time boost of 13.2 per cent to corporate net profit and earnings per share of India’s top listed companies that are paying higher taxes based on their FY19 financials. Under the new tax regime, companies’ combined tax liability is likely to reduce by around Rs 45,000 crore compared to what they paid in FY19. This excludes deferred tax and refunds and only includes current taxes. This is combined savings for 490 companies that are part of BSE 500, BSE MidCap and BSE SmallCap index and whose effective tax rate was greater than 25.2 …

Source: Business Standard