Income-tax Act, 2025

Tax on income of new manufacturing domestic companies - Section 201

Tax on income of new manufacturing domestic companies.

201. (1) Irrespective of anything contained in this Act, but subject to the provisions of Parts A, B, E and this Part (other than sections 199 and 200) of this Chapter, the income-tax payable in respect of the total income of an assessee, being a domestic company, specified in column B of the Table below, shall, at the option of such assessee, be computed at the rates specified in column C, if the conditions contained in column D thereof are fulfilled.

TABLE

Sl. No.AssesseeTotal income and rate of taxConditions

ABCD

1.A domestic company engaged in business of manufacture or production of any article or thing.

(a) 15% on the total income other than the income mentioned in clauses (b), (c) and (d);

(b) 22% (without any deduction or allowance in respect of any expenditure or allowance) on such income,

(i) which has neither been derived from nor is incidental to manufacturing or production of an article or thing; and

(ii) in respect of which no specific rate of tax has been provided separately under Parts A, B, E and this Part of this Chapter;

(c) 22% on short-term capital gains derived from transfer of a capital asset on which no depreciation is allowable under this Act;

(d) 30% on the income deemed so under section 205(4).

Such domestic company

(a) exercises the option in the manner provided in sub-section (2);

(b) has been set-up and registered on or after the 1st October, 2019;

(c) has commenced manufacturing or production of an article or thing on or before the 31st March, 2024;

(d) the total income of which is computed as per the provisions of sub-section (3); and

(e) fulfils all the conditions provided in sub-section (5) of this section and section 205(2).

(2) The option under this section shall be exercised by the assessee in the manner prescribed s .... To read the full section download the app from Google Play store