Answer

Startup ecosystem · Tax

Corporate tax rates: 22% vs 15% vs 25%

Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.

  1. Facts

    Sec 115BAA (now Sec 200), 22% + surcharge = 25.17% effective: All domestic companies. No MAT. No exemptions/deductions (Sec 140 (old Sec 80-IAC) exception applies). One-time irrevocable election.

  2. Provisions and law

    • IT Act, Sec 200 (old 115BAA
    • 22%), Sec 201 (old 115BAB
    • 15%), Sec 115BA (25%)

  3. Analysis

    Sec 115BAB (now Sec 201), 15% + surcharge = 17.01% effective: New manufacturing companies incorporated after Oct 2019 and starting production before March 31, 2024. No MAT. Lowest corporate tax rate in India. Sec 115BA, 25%: Domestic companies with turnover up to ₹400Cr in preceding year. Most startups should elect Sec 115BAA (now Sec 200), 22% with no minimum alternate tax (MAT) and no book profit complications.

  4. Conclusion

    Talk to a Savvy for the exact next step on your case.

A Savvy can do this for you

Updated return, ITR-U, Sec 263(6) (old 139(8A))

₹2,999

Get this doneAsk a Savvy on WhatsApp

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.

People also ask