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:
- 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;
- 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;
- 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;
- Fifteen percent of the total income, at the option of the company, if it opts for taxation under section 115BAB of the Act;
- Thirty percent of the total income, in all other cases.
- 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.
