SECTION 115-BAA

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Section 115BAA offers beneficial tax rates for domestic companies, but it comes with specific limitations. Companies opting for this section cannot offset losses from Section 32(1)(iia) or MAT credits under Section 115JAA. It's advisable to utilise these losses and credits before choosing Section 115BAA. The good news is that there's no deadline to exercise this option, allowing flexibility for companies.

TARIQUE RIZVI

TARIQUE RIZVI (Querist)

01 November 2021 Respected Sirs,

What are the loopholes of this section ?

CA Raj Doshi

CA Raj Doshi (Expert)

02 November 2021 Practically, no loophole. It is a beneficial section.

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Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

02 November 2021 Domestic companies opting to pay tax under Section 115BAA cannot set off their loss incurred on account of Section 32(1) (iia) and MAT credits specified under Section 115JAA. Therefore, it may advisable for these companies first to exhaust the loss and credit available. The option under Section 115BAA can be exercised anytime, since there is no specified timeline for opting for this section.

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TARIQUE RIZVI

TARIQUE RIZVI (Querist)

02 November 2021 Thanks with kindest regards to all of your sirs

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