Domestic companies - Eligible Rate of Inconme tax for A.Y 2018-19

[gvenugopal g]

Dear All,

Kindly suggest us, whether applicability of tax rate is 25% or 30% for A.Y 2017-18 & 2018-19

Company incorporated on 16-Dec-2015

Turnover (Rupees in Crore) of last three financial years are

FY 2015-16 ₹ 37.42,

FY 2016-17 ₹ 236.22 and

FY 2017-18 ₹ 108.55

For the Assessment Years 2017-18 & 2018-19, whether the above domestic company is eligible for Income tax payable at the rate of 25%

Kindly suggest whether we need to pay Income tax @ 25% or 30%

[DR.MARIAPPAN GOVINDARAJAN]

Already replied.

[gvenugopal g]

To - DR.MARIAPPAN GOVINDARAJAN

Respected Sir

You have replied for rate of tax for 115BA companies as below:

The first condition of Section 115BA(2) is not fulfilled your company is not eligible to pay tax at 25%. (The company is not incorporated after 01.04.2016).

But my second query is relating to a domestic company with turnover below ₹ 250 Crore and turnover below ₹ 50 Crore for P.Y 2015-16

( NOT for Tax on income of certain domestic companies u/s 115 BA)

Are you still contending that the company is not eligible to pay tax at 25%

Apart from this

The first condition of Section 115BA(2) is the company should have been incorporated on or after 01.03.2016 and NOT 01.04.2016.

Kindly confirm

[DR.MARIAPPAN GOVINDARAJAN]

Yes, I confirmed the reply.

AI Summary

Company Ineligible for 25% Tax Rate Under Section 115BA(2) Due to Incorporation Date Before April 1, 2016. A discussion forum participant inquires about the applicable income tax rate for a domestic company for the Assessment Years 2017-18 and 2018-19, questioning whether it should be 25% or 30%. The company was incorporated on December 16, 2015, with turnovers of 37.42 crore, 236.22 crore, and 108.55 crore for the financial years 2015-16, 2016-17, and 2017-18, respectively. A respondent clarifies that the company is not eligible for the 25% tax rate under Section 115BA(2) since it was not incorporated after April 1, 2016, confirming the company's ineligibility for the reduced rate.