CA Goutham. D. Pipada
Domestic Company:
New Manufacturing Company to be incorporated
| Incorporated on or after 1st March 2016 | Incorporated between 1st April 2016 upto 31st March 2019 |
| Option 1:
To pay tax @ 25%, subject to following conditions namely- a. No Section 10AA benefit b. No additional/accelerated depreciation benefit c. No section 35 benefit d. No investment allowance benefit e. No Chapter VIA deduction benefit (except u/s. 80JJAA) |
Option 1:
To pay tax @ 25%, subject to following conditions namely- a. No Section 10AA benefit b. No additional/accelerated depreciation benefit c. No section 35 benefit d. No investment allowance benefit e. No Chapter VIA deduction benefit (except u/s. 80JJAA) |
| Option 2:
To pay normal tax @ 30% by claiming all benefits |
Option 2:
To claim 100% deduction of profit for 3 out of 5 years. But pay tax as per section 115JB (MAT) |
New Company (other than manufacturing Company) incorporated between 01st April 2016 to 31st March 2019:
To claim 100% deduction of profit for 3 out of 5 years if incorporated between 01st April 2016 to 31st March 2019. But pay tax as per section 115JB (MAT)
Existing Company
| If turnover less than Rs. 5 crores in financial year 2014-15 | Others |
| Corporate tax @ 29% for assessment year 2017-18 | Tax @ 30% |
Note: The benefit of the 29% is given only for assessment year 2017-18 vide finance bill 2016. Whether the same will continue for subsequent years is a subject matter of next budget.
