BooksIQNew domestic manufacturing companies set up AND registered on/after 1-Oct-2019, commencing manufacturing by 31-Mar-2024 (extended to 31-Mar-2026 for some), can opt for 15% income-tax rate.
Key points
- Eligibility is limited to a domestic company set up AND registered on or after 01-Oct-2019, engaged in the manufacture or production of ANY ARTICLE or THING (not services, not trading) and commencing manufacturing operations by 31-Mar-2024 — with subsequent extensions noted.
- The tax rate is 15% + 10% surcharge + 4% Health and Education cess, giving an effective rate of about 17.16%.
- Several categories are NOT eligible: (i) businesses formed by the split-up or reconstruction of an existing business;
- (ii) companies where more than 20% of plant and machinery is second-hand;
- (iii) companies whose ONLY activity is generation of electricity, mining of coal, bottling of gas, printing of books, or production of cinematograph films.
- The list of forgone benefits matches §115BAA.
- The election is filed in Form 10-ID and is IRREVOCABLE.
- MAT does not apply.
Reference: §115BAB, ITA 1961 — under ITA 2025 (FY 26-27 onwards), this is §201
This page is general information for Indian businesses, current as of the
financial year shown above — not legal or tax advice. Tax law changes,
and how a provision applies depends on your specific facts. Confirm the
current position with a qualified professional before you act.
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