Income Tax On New Company
In order to give a boost to the Indian economy and to promote corporatization, the government has introduced an all-new section namely Section 115BAA and Section 115BAB to the Income tax act, whereby the governments have declared the tax benefits to those manufacturers who runs the business by formulating company subject to certain terms and condition. The said sections have received welcoming responses all over the nation. By this step of the government, the environment of running the business in India is expected to be more transparent and legalize. Let us discuss these sections in detail in this article. S e ction 115BAA: Section 115BAA of the Income-tax act states that, a Domestic company whether Manufacturer or not, needs to pay income tax at the rate of 22% (plus surcharge and cess) from the F.Y 2019–20 if such company adhere to certain terms and condition as prescribed under the act. After adding a surcharge of 10% and a cess of 4%, the effective tax rate would be 25.17%. A com