Section 115BAB (Lower rate of Income Tax @ 15%)

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This discussion concerns the eligibility for the lower income tax rate under Section 115BAB for a company formed in December 2019. The user wishes to merge an older company (formed in 2015) with existing assets into the new company to avail the tax benefit. However, the expert opinion suggests that this is not possible as the startup must be entirely new to qualify for Section 115BAB.

Mantu Agarwal

Mantu Agarwal (Querist)
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09 July 2020 Dear Expert,
We have formed a company ABC Ltd post in Dec-2019.

We have another company xyz Ltd formed in 2015.
In XYZ Ltd we had taken a land to set up factory and imported some machines from Germany but business is yet commenced.

Now we wish to merge xyz Ltd into ABC Ltd in order to get lower income tax benefit u/s 115BAB.

Please suggest your view.

Thanks & Regards,
M K Agarwal

Mantu Agarwal

Mantu Agarwal (Querist)
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11 July 2020 Can anyone respond please.