Section 115BAA and 115BAB for reduced tax rate for Companies. What are benefits in these sections.
Section 115BAA was introduced though ordinance on 20th September 2019 and benefit under this section is available from FY 2019-20. This section gives option to existing as well as new domestic companies to pay tax at the reduced rate of 22% instead of general rate of 25%/30%. To avail this facility of reduced rate, the domestic company have to file form 10-IC on or before the due date of filing of income tax return. and once this option is exercised than it cannot be withdrawn.
To be eligible to avail this facility of reduced tax rate of 22% , such companies should not avail any exemptions/ incentives under difference provisions of income tax like 10AA, 32 (additional depreciation), 33AB, 33ABA, 35, 35AD, 35CCC, 35CCD, 80IA, 80IAB, 80IAC, 80IB except 80JJAA.