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Sec115baa query urgent

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This query is : Resolved

Quick Summary

This discussion clarifies the tax implications for companies opting for Section 115BAA. Interest on fixed deposits will be taxed at 25% under this section. Additionally, if a company has rental income, deductions under Section 24 of the Income Tax Act will still be permitted.

CA Parul Saxena

CA Parul Saxena (Querist)

11 September 2024 What if a company opts for section115baa...then interest on Fixed deposit would be taxed at 22% or 25%...and if company has rental income too then deduction under section24 would be allowed?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

15 October 2024 Interest on fixed deposits would be taxed at 25% under Section 115BAA, as this section specifically provides for taxation of income other than business income at the rates provided in the Act.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

15 October 2024 Yes, if a company has rental income, deduction under Section 24 of the Income Tax Act, 1961 would be allowed.

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