[Section 115BA]: Tax on income of Certain Manufacturing Domestic Companies

Section 115BA: All Special Provisions relating to Rate of Income-Tax on Income of Certain Manufacturing Domestic Companies are described below:

(1)   [Section 115BA (1)]:  Certain Manufacturing Domestic Companies given an option to be taxed at the special rate of 25%

Notwithstanding anything contained in this Act but subject to the other provisions of Chapter XII, other than those mentioned under section I1SBAA and section 115BAB, the income-tax payable in respect of the total income of a person, being a domestic company, for any previous year relevant to the assessment year beginning on or after 1.4.2017, shall, at the option of such person, be computed @ 25%, if the conditions specified in section 115BA(2) are satisfied.

(2) [Section 115BA (2)]: Specified conditions for opting provisions of section 115BA (1)

(a)        the company has been set-up and registered on or after 1.3.2016;

(b)        the company 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; and

(c)        the total income of the company has been computed,—

(i)  without any—

—         deduction under the provisions of section I OAA (relating to special economic zone), or

—         benefit of accelerated depreciation/additional depreciation under section 32(1)(iia), or

—         benefit of investment allowance under section 32AC or under section 32AD, or

—         deduction under section 33AB (tea/coffee/rubber development account), or

—         section 33ABA (site restoration fund), or

—         section 35(1)(ii), (iia), (iii), section 35(2AA), section 35(2AB) (relating to amount paid or/donated for scientific research/social research), or

—         section 35AC (expenditure on eligible projects and scheme), or

—         section 35AD (deduction on account of capital expenditure on specified business), or

—         section 35CCC (agricultural extension project), or

—        section 35CCD (skill development project), or

—        any provisions of Chapter VI-A under the heading “C.—Deductions in respect of certain incomes” other than the provisions of section 80JJAA;

(ii)        without set off of any loss carried forward from any earlier assessment year if such loss is attributable to any of the deductions referred to in sub-clause (i) of clause (c) above; and

(iii)       by claiming depreciation under section 32, other than additional depreciation under section 32(1)(iia), determined in the manner as may be prescribed.

(3) [Section 115BA (4)]: Section not to apply unless the option is exercised in the prescribed manner on or before due date specified under section 139(1)

Nothing contained in this section shall apply unless the option is exercised by the person in the prescribed manner (See rule 21 AD and Form No. 10-IB) on or before the due date specified under section 139(1) for furnishing the first of the returns of income which the person is required to furnish under the provisions of this Act:

Provided that once the option has been exercised for any previous year, it cannot be subsequently withdrawn for the same or any other previous year:

Provided further where the person exercises option under section 115BAA, the option under this section may be withdrawn (Second proviso).