The government has introduced a favorable tax regime for new manufacturing companies. The Taxation Laws (Amendment) Ordinance, 2019 passed on 20 September 2019 has inserted Section 115BAB offering a low tax rate of 15% (plus surcharge and cess) to new manufacturing companies. This is done to promote the new manufacturing start-ups.
Domestic Manufacturing Companies
For all the new domestic companies engaged in manufacturing or production of an article, concessional income tax rate @15 % (plus surcharge and cess as applicable) may have opted, provided certain conditions are fulfilled.
The new company referred to herein means a company that has been set up and registered on or after the 1st October 2019, and has commenced manufacturing or production of any article or thing on or before the 31st March 2023.
Rate change in budget for manufacturing company.