Go AD-FREE with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Income tax @ 25% for new companies

Tax queries 334 views 1 replies

shivakumara swamy s

Finance executive

151 Points Joined December 2007

The company is incorporated in July 2017 and has a turnover of less than 50 crore. Can it avail the benefit of 25% Income Tax as per finance act 2017. (as the finance act specifically mentions about the turnover of the PY 2015-16 and do not talk about new companies). The CBDT chairman had even told then that they will comeout with clarification for the new companies (about the 25% tax) and I am not in possession of any such clarificaiton.

Can you please clarify if there is any such communicaiton or how this has to be treated

Replies (1)

Kartikey Jain

Intern

2382 Points Joined July 2013

Yes, I remember reading the same statement at the time of budget 2017 that the CBDT would come out with a clarification on tax rate for new companies (which incorporated in the year 16-17 or 17-18) and thus have no sales in the PY 15-16. But I could'nt find any notification/clarification from the department on the internet.

I would advise you to call on the Income tax helpline to get clarification on this matter as the rate for new companies should most likely be 25% itself for the AY 18-19.

If you do get any clarification on this matter, please do not forget to post it on this forum so that all our members also get enlightened on it.