Tax on income of certain manufacturing domestic companies under section 115BA - Income Tax - Ready Reckoner - Income Tax

Section 115BA : 25% rate of tax on certain Domestic Companies Conditions: - Domestic manufacturing company should be set up registered in India on or after 1 st March, 2016. Company should be engaged in the business of manufacturing or production of any article or things Company should not claim benefit of other deductions under IT Act :- Section 10AA : Deductions from the Special Economic Zones (SEZ) unit. Section 32(1)(iia) : Additional Depreciation Section 32AD : Expenditure that is allocated on machinery and new plants manufactured in the notified backward areas in the states of Bihar, West Bengal, Telangana and Andhra Pradesh. Section 33AB : Deduction given on rubber manufacturing, tea and coffee. Section 33ABA: Deposits made to the site restoration fund by the companies producing or extracting petroleum and natural gas in India. Section 35(1)(ii) , (iia) , (iii), 35(2AA) , 35(2AB) Scientific Research Section 35AD : Capital spent by any particular business. Section 35CCC : Investment in agriculture extension projects. Section 35CCD : Investment in projects concerning skill development. Any deduction in respect of certain income under chapter VI-A (except Section 80JJAA ) Option has to be exercise upto the due date of ROI u/s 139 Once the option is exercised it can t be withdrawn for the same or any other PY. If a company wants to opt for benefits u/s 115 BAA , only then can it opt out of benefits from Section 115BA . As per the rules of CBDT, this option will be present in Form 10-IB . One needs to submit the form online under EVC or a digital signature. Special Income shall be taxable as per Special Rates of Tax i.e., U/s 111A , 112 , 112A Surcharge shall be applicable depending upon Total Income of Company i.e., 7%/12% Health Education Cess will be levied @ 4% always. Company is required to pay MAT, Utilization and carry forward of MAT can be availed as per section 115JAA .