Comparison Chart for Companies opting New Rates of Tax Under Section 115BA, 115BAA or 115BAB - Income Tax - Ready Reckoner - Income Tax

S. No Company Rate of Tax 1. If the Domestic Company opts to be taxed under section 115BA 25% Conditions / Restrictions 2. If the Domestic Company opts to be taxed under section 115BAA 22% Conditions / Restrictions 3. If the Domestic Company opt to be taxed under section 115BAB 15% Conditions / Restrictions Comparison Chart for Section 115BA , Section 115BAA Section 115BAB Sr No. Points for Comparison Sec 115BA Sec 115BAA Sec 115BAC 1. Applicable to Certain Domestic Manufacturing Companies Certain Domestic Companies Certain New Domestic Manufacturing Companies 2. Company set-up registered to qualify for availing benefit under the section On or after 01.03.2016 Benefit available irrespective of date of set-up On or after 01.10 2019 3. Tax Rate 25% 22% 15% 4. Rate of surcharge 7% if total income exceeds 1 Crore/12% if total income exceeds 10 Crores. 10% 10% 5. Effective Rate of Tax including Surcharge HEC 26% if total income is 1 Crore or less, 27.82% if total income exceeds 1 Crore but upto 10 Crores, 29.12% if total income exceeds 10 Crores 25.168% 17.16% 6. Provision of MAT Applicable Not Applicable Not Applicable 7. If existing MAT credt unutilized? Company carry forward and utilize it as per sec 115JAA Unutilised credit lapses if company opts for sec 115BAA This section applies to new companies. Therefore, No unutilsed MAT credit. 8. When an option for benefit u/s should be exercised On or before due date of ROI On or before due date of ROI for any PY relevant to AY commencing on or after 01.04.2020 On or before due date of ROI for furnishing first return of income under the provisions of the Act. 9. Whether existing company can migrate from section 115BA to the new section - Yes, Company which has opted for section 115BA can irrevocably opt for sec 115BAA and thereupon withdraw the option exercised for sec 115BA No. Company which has opted for Sec 115BA can t opt for Sec 115BAB. 10. Tax Rate for Special rates of Income (U/s 112A, 112, 111A etc.) Special rate (Surcharge if applicable) +4% HEC Special Rate + 10% Surcharge + 4% HEC Special Rate + 10% Surcharge + 4% HEC 11. Tax on Other Income (HP/IFOS) 25% (Surcharge if applicable) +4% HEC 22% + 10% Surcharge + 4% HEC 22% + 10% Surcharge + 4% HEC 12. Benefits which are not available for companies opting new tax rates 10AA 32(1)(iia), 32AD 33AB, 33ABA 35(1)(ii),(iia), (iii), 35(2AA), 35(2AB) 35AD, 35CCC, 35CCD 80IA to 80RRB Except 80JJAA 10AA 32(1)(iia), 32AD 33AB, 33ABA 35(1)(ii),(iia), (iii), 35(2AA), 35(2AB) 35AD, 35CCC, 35CCD Chapter VI-A Except 80JJAA, 80LA, 80M No setoff of any b/f loss or unabsorbed depreciation attributable to such deduction 10AA 32(1)(iia), 32AD 33AB, 33ABA 35(1)(ii),(iia), (iii), 35(2AA), 35(2AB) 35AD, 35CCC, 35CCD Chapter VI-A Except 80JJAA, 80M No setoff of any b/f loss or unabsorbed depreciation attributable to such deduction