New Delhi, Oct 17 (TIWN): A third of India Inc is yet to decide on whether to shift to the newer corporate tax regime offering lower outgoes, and those planning to switch have no plans to pump the gains into capex investments, given the plunging demand, finds a survey.

Two-thirds of the 850 companies surveyed by rating agency CrisilNSE 3.32 % want to shift, but the benefits are unlikely to result in higher investments by them immediately, the agency said Tuesday.

The government had last month announced a massive 10- 12 percentage points reduction in corporate tax rate to 25.17 percent in a bid to push investment-ironically at a time when already the existing capacity across industriesNSE 1.85 % is heavily underutilised as demand keeps falling month after month.

While announcing the massive tax giveaways to the tune of Rs 1.45 lakh crore, government had said companies would have to give up all existing tax exemptions to be eligible to move to the new regime.