Short Introduction of section-115ba,115baa &115bab of Income-Tax act -1961.
- Rahul kumar jha
- Jun 18, 2022
- 3 min read
Updated: Jun 21, 2022
Information Basically, the tax rate applicable for domestic companies is 30%. it could be 25% if the Turnover or Gross Receipt of the Domestic company doesn't Exceed Rs 400 crore in the previous Financial Year. let's move ahead towards these above sections... Domestic company Ref. Sec 2(22a) can Opt to Pay Tax either of section 115ba,115baa,115bab, only on Fulfillment of certain terms & conditions. once a company opts to pay tax in these sections then it has to follow the same in the subsequent F.Y. it can't be subsequently withdrawn.
Conditions of these sections 115ba,115baa,115bab of Income Tax act-1961 !
Section 115ba
25% Tax applicable
applicable from A.Y 2017-18
Domestic company Ref. sec 2(22a) of Income act should only be engaged in manufacturing/Production activity.
a company must be incorporated/Registered on or after March 2016
Section 10AA: Deduction From SEZ unit.
Section 32AD: Investment allowance towards new Plant machinery made in Notified Backward areas (Andhra-Pradesh, Bihar, Telangana, and West Bengal).
Section 33AB: Deduction of Tea coffee and rubber manufacturing.
Section 33ABA: Deposits made by companies engaged in the production or extraction of petroleum and natural gas in India towards the site restoration fund.
Section 35AD: Capital expenditure by any specified business.
Section 35CCC: Expenditure on an agriculture extension project
Section 35CCD: Expenditure on the skill development project
Deduction under section 80H to 80TT (except 80JJAA)
Deduction under section 32AC, 35(1) (ii) / (iia) / (iii) / 35(2AA) / (2AB), 35AC
Additional depreciation under section 32.
No set-off and carried forward losses attributed to any of the deductions mentioned above from earlier years.
These above Deductions are not to be allowed while Computing the Total-Income.
Surcharge: applicable is 7% if total income exceeds rupees 1 crore and 12% if it exceeds rupees 10 crores.
cess: 4%
MAT: (Minimum alternate tax) is applicable @ 15%
Section 115baa
22% Tax applicable
Applicable from A.Y 2020-21
Any Domestic Company can Opt for this Section.
Section 10AA, Section 32AD, Section 33AB, Section 33ABA, Section 35AD, Section 35CCC, Section 35CCD. For Details: Ref.(Section 115ba)
Additional depreciation under section 32.
Deduction under section 35.
Deduction under section 80IA, 80IAB, 80IAC, 80IB and so on (except 80JJAA).
These above Deductions are not to be allowed while Computing the Total-Income.
No set-off and carried forward losses attributed to any of the deductions mentioned above from earlier years.
Surcharge: 10%
Cess: 4%
Minimum alternate Tax is not Applicable
Section 115bab
Tax applicable 15%
Applicable from A.Y 2020-21
Domestic company Ref. sec 2(22a) of Income act should only be engaged in manufacturing/Production activity.
A company must be set up & Registered on or after 1st October 2019 and must not commence manufacturing on or Before 31st March 2024
That company must not be formed by splitting up and reconstructing of a business already in existence except in case of a business re-established under section 33B.
That company must not use any previously used plant or machinery and building which was previously used for a hotel or convention center.
Old plants & machinery used outside India can be used. The value of old plants & machinery does not exceed 20% of the total value of plant and machinery used by the company.
Section 10AA, Section 32AD, Section 33AB, Section 33ABA, Section 35AD, Section 35CCC, Section 35CCD. For Details: Ref.(Section 115ba)
Additional depreciation under section 32.
Deduction under section 35
Deduction under section 80IA, 80IAB, 80IAC, 80IB and so on (except 80JJAA).
These above Deductions are not to be allowed while Computing the Total-Income.
No set-off and carried forward losses attributed to any of the deductions mentioned above from earlier years.
Surcharge: 10%
Cess: 4%
Minimum alternate Tax is not Applicable
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