Concessional tax rate for qualifying manufacturing companies restricted by disallowed deductions and binding election requirement.
An elective regime permits a domestic company incorporated on or after 1 March 2016 and engaged solely in manufacture/production (including related research and distribution) to compute tax at a flat 25% rate if it validly exercises the option in the prescribed manner. The option excludes specified deductions (notably sections 45(2), 47(1)(b), most of Chapter VIII-C except section 146, and sections in section 205(1)(a)-(g)) and bars set-off of earlier losses attributable to those deductions; the provision contains a non-obstante clause while preserving interplay with specified Parts and sections.