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%

AI Summary

Eligibility for reduced corporate tax rate hinges on incorporation date and turnover thresholds, affecting claim to lower tax regime.
Qualification for the concessional 25% tax rate turns on two operative requirements: the company's incorporation date and prescribed turnover thresholds. The company, incorporated on 16 December 2015, provided turnover figures below the higher threshold, but the advisor advised ineligibility under Section 115BA(2) because the company was incorporated before the required cut-off date; the taxpayer disputed the exact cut-off date cited but did not supply conflicting statutory authority.