1. This section is applicable on domestic companies
2. This section is applicable from the AY 2020-21
3. Effective Tax rate under this section is 17.16% (Tax 15% plus, Surcharge 10% and Cess 4%)
4. The company should be incorporated and registered in India on or after 1st October 2019
5. The company should commenced manufacturing or production of an article of thing on or before 31st March 2023
6. The company should not be formed by virtue of splitting up, reconstruction of already business in existence
7. It should not use Plant & Machinery previously used for any purpose, however the company can use old plant and machinery, the value of which does not exceed 20% of the total value of the plant and machinery used by the company
8. It should not use Building previously used for hotel or convention centre
9. It should not engaged in any business other than the business of manufacturing or production of an article of thing
10. The total income of the company will be computed without giving following deductions-
11. Deprecation can be claimed
12. Company opting section 115BAB should exercise this option at the time of filing it first return and should file Form 10ID with the department online.
13. Once the option has been exercised for any previous year, it cannot be subsequently withdrawn for the same or any other previous year.
14. Provisions of MAT under section 115JB shall not be applied on companies opting for new regime.
15. The loss referred to in point no. 10 shall be deemed to have been given full effect to and no further deduction for such loss shall be allowed for any subsequent year.