Key Highlights From FM Sitharaman's Announcement

Any Domestic Companies:

• Option to pay income tax at 22 percent if they don't avail any exemptions, incentives. Effective Tax Rate: 25.17%
• No MAT

New domestic mfg company (incorporated after Oct 1, 2019)

• Option to pay 15 percent tax. Effective Rates: 17.01% 
• No MAT

Investments

• No tax surcharge on capital gains on sale of securities, including derivatives in the hands of FPIs 
• No tax on listed companies' share buybacks announced before July 5, 2019
• Enhanced surcharge in the hands of individuals, HUF, AOP, BOI, artificial juridical person stands withdrawn.

Impact:

• “Revenue foregone for the reduction in corporate tax rate is Rs 1.45 lakh crore per annum,” Finance Minister Nirmala Sitharaman said.
• Fiscal Defecit may go over 4% (75 bps)
• Positive impact on equity markets. Sensex had surged 1600 points, while Nifty covered 480 points at the time of writing this post.
• 10YR GSec? surged 22 points to 6.86%