Comparison of Section 200 'Tax on income of certain domestic companies.' between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

Optional concessional tax regime: companies forgo specified deductions to access a lower flat tax rate, with strict irrevocable election rules.

An optional concessional tax regime permits a domestic company to elect a lower flat rate if it forgoes specified deductions and certain carry-forward reliefs; losses and unabsorbed depreciation attributable to excluded deductions cannot be set off and are deemed given full effect. The election must be made in a prescribed manner by the return due date, is irrevocable and applies to subsequent years, with failure to meet requirements invalidating the option. IFSC Units receive a limited modification preserving certain deductions subject to that provision's conditions.