Explanatory notes on the Finance Act, 2022

The Central Board of Direct Taxes vide circular dated the 3rd of November, 2022 has issued explanatory notes on the Finance Act, 2022. The notes clarifies that in case of a domestic company, the revised rate of income-tax is:

1. Twenty-five per cent. of the total income, if the total turnover or gross receipts of the company in the previous year 2020-21 does not exceed four hundred crore rupees;
2. Twenty-five per cent. of the total income, at the option of the company, if it opts for taxation under section 115BA of the Act;
3. Twenty-two per cent. of the total income, at the option of the company, if it opts for taxation under section 115BAA of the Act;
4. Fifteen percent of the total income, at the option of the company, if it opts for taxation under section 115BAB of the Act;
5. Thirty percent of the total income, in all other cases.
6. Where the domestic company exercises the option under section 115BAA or section 115BAB, the tax computed shall be enhanced by a surcharge of ten per cent.