Income tax rate for FY 19-20

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kiran (Querist)
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05 November 2019 Dear Team,

what rate to be used for domestic company for 2nd quarter of FY 19-20 . Amendment has given some conditions which includes not allowability of Depreciation under Sec 32? Please help whether we can claim dep if we are opting for these rate?

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Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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26 May 2020 ♦Where it opted for Section 115BA 25%
♦ Where it opted for Section 115BAA 22%
♦ Where it opted for Section 115BAB 15%

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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26 May 2020 Surcharge : The rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be flat 10% irrespective of amount of total income.

Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

MAT : The domestic company who has opted for special taxation regime under section 115BAA & 115BAB is exempted from provision of MAT. However, no exemption is available in case where section 115BA has been opted.

In that case, the provisions of Minimum Alternate Tax (MAT) applies, tax payable cannot be less than 15% (+HEC) of "Book profit" computed as per section 115JB. However, MAT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of a company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange. For provisions relating to MAT refer tutorial on "MAT/AMT" in tutorial section.

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