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TMI BlogClarifications in respect of option exercised under section 115BAA of the Income-tax Act, 1961 inserted through The Taxation Laws (Amendment) Ordinance, 2019X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Board of Direct Taxes New Delhi 2 nd of October, 2019 Subject: Clarifications in respect of option exercised under section 115BAA of the Income-tax Act, 1961 inserted through The Taxation Laws (Amendment) Ordinance, 2019- reg. The Taxation Laws (Amendment) Ordinance, 2019 (the Ordinance) has been promulgated by the President of India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment years. 3. The Ordinance also amended section 115JB of the Act relating to Minimum Alternate Tax (MAT) so as to, inter alia, provide that the provisions of said section shall not apply to a person who has exercised the option referred to under newly inserted section 115BAA . 4. Representations have been received from the stakeholders seeking clarification on fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. provides that the total income shall be computed without claiming set off of any loss carried forward from any earlier assessment year if the same is attributable, inter ailia to additional depreciation. 5.1.1 Therefore, a domestic. company which would exercise option for availing benefit of lower tax rate under section 115BAA shall not be allowed to claim set off of any broug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 115BAA of the Act shall not be available consequent to exercising of such option. 5.2.1 Further, as there is no time line within which option under section 115BAA can be exercised, it may be noted that a domestic company having credit of MAT may. if it so desires, exercise the option after utilising the said credit against the regular tax payable under the taxation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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