On February 1, the fact-checking arm of the Press Information Bureau denied NDTV’s claims that Finance Minister Nirmala Sitharaman had announced a corporate tax cut from 18% to 15%.
Fake news is spreading about the corporate tax cut in the budget. #PIBFactCheck
▶️ The government has proposed to reduce the alternative minimum tax rate for cooperative societies to 15%, from 18.5% currently. pic.twitter.com/FVvUjU2zaD
– GDP Fact Check (@PIBFactCheck) February 1, 2022
In a tweet, GDP Fact Check said: “False information being spread about the corporate tax cut in the budget. The government has proposed to reduce the alternative minimum tax rate for co-operative societies to 15%, from 18.5% currently.
NDTV called for corporate tax cut during live broadcast
The screenshot from news channel NDTV was shared by PIB in the tweet while debunking the claim. The budget speech that NDTV broadcast live on Tuesday is available on his YouTube channel. At the 1:16 timestamp, the misleading note posted by NDTV is still available in the video.
What did FM announce?
During his speech, FM Sitharaman noted, “Currently, cooperative societies are required to pay the alternative minimum tax at the rate of eighteen and a half percent. However, companies pay the same at the rate of fifteen percent. In order to ensure competitive conditions between cooperative societies and companies, I propose to reduce this rate for cooperative societies also to fifteen percent.
What is AMT?
AMT or Alternative Minimum Tax is the minimum tax that cooperative societies must pay if they claim profit-related deductions in a financial year where the normal tax payable is less than the AMT. It operates on the same principle as the Alternative Minimum Tax (MAT) applicable to businesses. Previously, the AMT for cooperative societies was 18.5%, it has been reduced to 15%.