Tax on Income of newly formed Resident Co-Operative Societies - Section (New) 204 / (Old) 115BAE

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....are satisfied. Tax Rates Type of Income Tax Rate (a) Manufacturing income 15% (b) Non-manufacturing income not otherwise taxed 22% (c) Short-term capital gain (on non-depreciable asset) 22% (d) Deemed income under section 205(4) 30% Surcharge Rate - Such Concessional Rate has been increased by the Surcharge (i.e. 10% on Income Tax) and Health & Education Cess (i.e. 4% of the Income tax and Surcharge) Conditions (a) exercises the option in the manner provided in sub-section (2); (b) has been set-up and registered on or after the 1st April, 2023; (c) has commenced manufacturing or production of an article or thing on or before the 31st March, 2024; (d) the total income of ....

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....iction on nature of business (i.e. assessee must only engage in manufacture or production) • - it is not engaged in any business other than the business of manufacture or production of any article or thing and research in relation to, or distribution of, such article or thing manufactured or produced by it, • Power of the Board to issue guidelines • - if any difficulty arises in fulfilling any of the conditions contained in clause (b) or (c) or (d), the Board may issue guidelines for the purpose of removing the difficulty and to promote manufacturing or production of article or thing using new plant and machinery. • - Such guidelines required prior approval of the Central Governm....

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....ied • (b) section 45(3)(a) or (b) or (c) :- Certain payments to research association, university, college, national laboratory, etc.; • (c) section 46 :- Capital expenditure for the purposes of any specified business; • (d) section 47(1)(a) :- Expenditure on agricultural extension project by any assessee; • (e) section 48 :- Deductions related to certain business or investment expenditures • (f) section 49 :- Deduction of the amount Deposited in Site Restoration Fund by a company engaged in extracting, or producing petroleum or natural gas, or both;; • (g) section 144 :- Deduction in respect of profits and gai....

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....ch no specific rate of tax has been provided separately under this Chapter • Such income shall be taxed at the rate of 22% and no deduction or allowance in respect of any expenditure or allowance shall be made in computing such income. • Income-tax payable in respect of the income, of the assessee deemed so under the second proviso to section 115BAE(4) shall be computed at the rate of 30%. • Short term capital gains derived from transfer of a capital asset on which no depreciation is allowable under the Act • income-tax payable in respect of such STCG at the rate of 22%. • Surcharge rate will be 10% irrespective of total Income. • Certain Conditions specified....

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....ng and research in relation to, or distribution of, such article or thing manufactured or produced by it. • The business of manufacture or production of any article or thing shall include the business of generation of electricity, but not include a business of-  • (i) development of computer software in any form or in any media; • (ii) mining; • (iii) conversion of marble blocks or similar items into slabs; • (iv) bottling of gas into cylinder; • (v) printing of books or production of cinematograph film; or • (vi) any other business as may be notified by the Central Government in this behalf; • Clause (c) Certain Restrictions ....

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....ply. • Section 115BAE(4) • Where it appears to the Assessing Officer that, owing to the close connection between the assessee to which this section applies and any other person, or for any other reason, the course of business between them is so arranged that the business transacted between them produces to the assessee more than the ordinary profits which might be expected to arise in such business, the Assessing Officer shall, in computing the profits and gains of such business for the purposes of this section, take the amount of profits as may be reasonably deemed to have been derived therefrom. • In case the aforesaid arrangement involves a specified domestic transaction referred to in section 92BA,....