Lower Corporate Rate @22% for FY 2019-20 u/s.115BAA

[gvenugopal g]

Dear Experts,

The new Section 115BAA has been inserted in the Income tax Act, on 5th September 2019 to give the benefit of a reduced corporate tax rate for all the domestic companies. They have the option to pay tax at a rate of 22% from the FY 2019-20 onwards.

Kindly advice whether any threshold limit in turnover for availing the benefit?

[Nandan Khambete]

No threshold limit is turnover is prescribed. 22% Tax will be increased by 10% surcharge and 4% cess.

AI Summary

Reduced corporate tax rate option for domestic companies; no turnover threshold, surcharge and health cess apply.
A statutory amendment inserted in September 2019 allows domestic companies to elect a reduced corporate tax rate of 22% from FY 2019 20; no turnover threshold applies. The elected reduced rate is subject to the statutory surcharge and the health and education cess, which are added to the tax computed under the optional regime.