New Corporate tax rates in India w.e.f. FY 2019-20 – A quick and easy guide

The Finance Ministry has announced new corporate tax rates applicable from the financial year beginning on 1st April 2019 for certain types of companies in India. Sections 115BAA & section 115BAB have eliminated the concept of MAT under section 115JB for the Domestic Companies while removing some deductions which are detailed in the attached presentation.

 

Each of the above sections provide for different rates of income tax ranging from base rate of 15% to 30%. Income Tax law requires assessee to exercise an option for a preferred section. Option can be exercised in a particular prescribed manner on or before due date of filing of return of income. Option once exercised cannot be withdrawn subsequently. A careful perusal of provisions is required before opting for any specific rate. Review of benefits like set off of losses, MAT credit available etc. will be required to be considered before opting for any option.