Section 115BA provides that subject to the fulfilment of conditions specified therein, the total income of certain newly set-up domestic companies shall, at their option, be taxed at the rate of 25%. However, the rate of 25% is not applicable in the case of income covered by section 111A or 112 of Chapter XII (income covered by these sections will be taxable at the rate specified in these sections).
Amendment –
Section 115BA has been amended (with effect from the assessment year 2017-18) to provide that the provisions of this section shall be subject to the other provisions of the said Chapter XII instead of only sections 111A and 112. If a domestic company (which has opted for 25% tax rate under section115BA by uploading Form No. 10-IB) has incomes taxable under other provisions of Chapter XII (i.e., sections 110 to 115BBG), then tax on such other incomes will be calculated as per the rate specified by these sections.
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