Profit of Indian companies increased 105% in the last financial year due to tax cuts, reduction in spending
significant increase in the profits of companies due to a sharp cut in the corporate tax rate and cost reduction due to the pandemic. However, there has been a decline of five percent in the earnings of the companies during this period. This information has been given in a report.
According to an analysis by SBI Research, 4,000 listed companies have paid a record corporate tax. In the financial year 2020-21, these companies paid Rs 1.90 lakh crore corporate tax. This is Rs 50,000 crore more than Rs 1.40 lakh crore in 2019-20. The government in September 2019 reduced the effective rate of corporate tax from 35 per cent to 26 per cent.
Apart from this, due to the epidemic, these companies have also reduced their expenses, due to which their profits have reached a record level in the last financial year. The average revenue of these companies declined by five per cent in the last financial year but their net profit increased by 105 per cent. However, the company's profit figures have not been given in the report. The report said the tax cuts contributed 19 per cent to the income of these companies during the pandemic. At the same time, this contribution to the income of cement, tire and consumer durables companies was more than 50 percent.