Tax rate on companies upto 250 crore is 25% For A.Y 19-20.
SSec115BA is different section for certain specified companies
Is 25% corporate tax applicable to all companies or only THOSE meeting the 115 ba criterion
Sec 115BA: 25 % Tax on certain domestic Co. Section 115BA: Tax at the rate of 25 % on income of certain domestic companies: AS PER THIS SECTION ONLY COMPANIES REGD ON OR AFTER 01-03-16 WILL ENJOY THE BENEFIT OF 25% TAX- ALL OTHERS STILL PAY AS PER OLD RATE OF 30% PLEASE CLARIFY As per new section 115BA has been inserted with effect from assessment year 2017-18 that the domestic companies satisfy following conditions will eligible for tax rate of 25 per cent. Conditions: 1. The Assessee is a domestic company. 2. The company has been set-up and registered on or after 01.03.2016. 3. The company is not engaged in any business other than the business of manufacture or production of any article or thing and research in relation to (or distribution of) such article or thing manufactured or produced by it. 4. Total income of the company is computed without claiming additional depreciation and deduction under sec.10AA,32AC,32AD,33AB,33ABA.35(1)(ii)/(iia)/(iii)/35(2AA)/(2AB), 35AC, 35CCC, 35CCD and Section 80H to 80TT (not being sec-80JJAA). 5. Total income of the company is calculated without adjusting brought forward loss from any earlier year (if such loss pertains to any deduction under the aforesaid sections).Moreover, such loss will not be carried forward. Option in the Hands of Assessee: If the above conditions are satisfied,the company has an option to pay tax at the rate of twenty five per cent(+SC+EC+SHEC). This Option shall be exercised on or before the due date for furnishing the returns of income, which the company is required to furnish under the Act. Once the company has exercised the option for any previous year, it cannot be subsequently withdrawn for the same or any other previous year.
Asked 6 years ago in Income Tax
Dear Sir,
Section 115BA of the Act provides that the total income of a newly set up domestic company engaged in business of manufacture or production of any article or thing and research in relation thereto, or distribution of such article or thing manufactured or produced by it, shall, at its option, be taxed at the rate of 25 per cent. subject to conditions specified therein. This benefit is available from assessment year 2017-18.
This section is not applicable to every domestic company.
Currently, the lower rate of 25% is applicable all companies having annual turnover up to Rs 400 crore (Rs 25 Cr for AY 2019-20).
MY CA STATES THAT THE 25% TAX CANNOT BE CLAIMED IF THE COMPANY IS REGISTERED BEFORE [deleted]. WE ARE A TRADING COMPANY THAT IMPORTS ENGINEERING GOODS AND SUPPLIES IN INDIA EITHER AS IT IS OR IN SOME CASES ASSEMBLED IN INDIA. KINDLY BE SPECIFIC IS WE CAN CLAIM 25% TAX OR NOT.
Asked 6 years ago
Yes you can go for 25% as the tax rate has been changed from this assessment year, provided your turnover is below 250 crores.
Yes, you can claim 25% tax.
WE HAVE PAID THE TAX AT 30% FOR THE FY 17-18 - RETURNS FILED END SEPTEMBER 2018. OUR TURNOVER WAS AROUND 16 CRORES.( FOR ACCOUNTING YEAR 16-17) CAN WE FILE RECTIFICATION AND CLAIM OUR EXCESS PAID TAX BACK. IF YES WHAT IS THE PROCEDURE
Asked 6 years ago
Hi,
You can submit a rectification request u/s 154 online after the income tax return is processed or on receiving an Intimation u/s 143(1). You can rectify mistakes apparent from the record. Under this section, one can rectify clerical, arithmetical mistakes, a mismatch in tax payments, inclusion of income chargeable under an incorrect heading, and even changes in your resident status. Further, there must be confirmation that the mistake is apparent from the records and it is not a mistake that requires debate, elaboration, investigation, etc.
For A.Y. 2019-20, rate is 25% if turnover in the previous year 2016-17 does not exceeds Rs.250 crore.
Section 115BA is a specific section applicable to persons who are eligible for claiming deduction u/s 35AD, 33 and other such section and they let go such deduction and pay taxes at 25%.
For normal companies rates were changed from F.Y. 16-17 i.e. A.Y. 2017-18 where if your turnover is below 50 crore in F.Y. 2014-15 you can pay tax @25%.
Later on in budgets this limit was increased to turnover of Rs. 250 crore in next budget. So you dont have to take benefit of any specific section you need to look at the finance bill for such tax rate and it is general and available to all.
Although your CA is correct in mentioning that this section is only available to companies registered after that date but you are not taking benefit of that section you are taking benefit of normal tax rates provided by government.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hi,
The time limit to file revised return has been elapsed. If you have received 143(1), you can try filing a rectification application under section 154.
Since your turnover was below the prescribed revenue threshold, you were eligible to claim lower tax rate of 25%.
Hello,
Yes, tax rate was 25%, since your turnover was below the prescribed limit.
Yes, you can file rectification if you have received an intimation u/s. 143(1).
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