Find
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.
Startup ecosystem · Tax
Corporate tax rates: 22% vs 15% vs 25%
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Provisions
IT Act, Sec 200 (old 115BAA; 22%), Sec 201 (old 115BAB; 15%), Sec 115BA (25%)
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.
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