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    TaxKiln

    115BAA vs standard corporate

    A domestic company can opt into s.115BAA's flat 22% (no MAT) by forgoing most incentives, or keep the standard 25%/30% structure plus its incentives — and MAT.

    ≤ ₹400 cr → 25% standard rate; otherwise 30%.

    s.115BAA effective: 25.168% → ₹25,16,800

    Standard effective: 26.000% (rate 25% + 0% surcharge + cess; MAT does not bind) → ₹24,70,000

    Lower-tax route: Standard regime — gap ₹46,800.

    For small companies (profit under ₹1 cr) the gap is narrow — and 115BAA forgoes incentives permanently, so it is NOT automatically the cheaper route. Model your incentive stack carefully before opting in.

    s.115BAB is CLOSED. The 15% concessional rate for new manufacturing companies under s.115BAB is not available to companies commencing manufacture after 2024-03-31. We do not offer it as a live option here.

    Private limited company guide →Manufacturing-sector notes →

    NOT financial advice - seek advice from a professional for your specific situation

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