What is Section 115BAA?
Nexa Consultancy | Startup & Finance Glossary
This section of the Income Tax Act gives domestic companies the option to pay tax at a concessional rate of 22% (plus surcharge and cess), provided they do not claim certain specified deductions and exemptions.
Startup Example: A profitable startup evaluates whether to opt for the new 22% tax rate under 115BAA or continue with the old regime and claim benefits like accelerated depreciation. This is a one-time, irreversible decision.
We help startups make this crucial decision as part of our tax planning.