Tax Rate of New Company, Income Tax

[KrishnaKumar A]

Hi Experts,

One of my client is a new company, incorporated in FY 2018-19. It's turnover is less than 5 crore during the FY. The company was not in existence during the FY 2016-17 and turnover criteria of 250 Crore may not be applicable here. Its a service sector company and section 115BA is not applicable also. It would be great if anyone can clarify what is the tax rate for this company? 25% or 30%?

Thank you.

Posts / Replies

[Neekita Jindal]

Hello Dear

Since Sec 115BA is not applicable to your client, tax rate for your client is 30%.

[CASusheel Gupta]

Section 115BA is special section.

Tax rate for all companies, except covered under section 115BA, having turnover less than 250 crore is 25%.

Refer to Section 2 of Finance Act (No. 2) 2019 for tax rate.

CA Susheel Gupta