Before you opt for concessional tax rates of 15% or 22% !!
A domestic company opting for concessional tax rate schemes prescribed under section 115BAA or section 115BAB, can exercise this option by electronically filing Form 10-IC or Form 10-ID respectively. The forms are notified recently by the CBDT and same can be accessed at www.TheTaxTalk.com.
Newly incorporated manufacturing company have an option to opt for a tax rate of 15%. All other domestic companies shall have an option to pay income tax at the rate of 22% (plus applicable surcharge and cess), provided the following conditions are complied with:
Such companies should not avail any exemptions/incentives under different provisions of income tax.
Therefore, the total income of such company shall be computed without:
1. Claiming any deduction especially available for units established in special economic zones under section 10AA
2. Claiming additional depreciation under section 32 and investment allowance under section 32AD towards new plant and machinery made in notified backward areas in the states of Andhra Pradesh, Bihar, Telangana, and West Bengal
3. Claiming deduction under section 33AB for tea, coffee and rubber manufacturing companies
4. Claiming deduction towards deposits made towards site restoration fund under section 33ABA by companies engaged in extraction or production of petroleum or natural gas or both in India
5. Claiming a deduction for expenditure made for scientific research under section 35
6. Claiming a deduction for the capital expenditure incurred by any specified business under section 35AD
7. Claiming a deduction for the expenditure incurred on an agriculture extension project under section 35CCC or on skill development project under section 35CCD
8. Claiming deduction under chapter VI-A in respect to certain incomes, which are allowed under section 80IA, 80IAB, 80IAC, 80IB and so on, except deduction under section 80JJAA
9. Claiming a set-off of any loss carried forward from earlier years, if such losses were incurred in respect of the aforementioned deductions
All Such companies will have to exercise this option to be taxed under the section 115BAA on or before the due date of filing income tax returns i.e usually 30th September of the assessment year. Once the company opts for section 115BAA in a particular financial year, it cannot be withdrawn subsequently.