Income Tax--Taxation Laws (Amendment) Ordinance, 2019

Amendments by Taxation Laws (Amendment) Ordinance, 2019

CA. Manoj Gupta

Recently, the Taxation Laws (Amendment) Ordinance, 2019 has carried out various amendments to the Income Tax Act, 1961 and Finance (No. 2) Act, 2019 so as to provide certain tax incentives. The learned author discusses these amendments.

1. Amendment of Section 115BA

The Taxation Laws (Amendment) Ordinance, 2019 has amended Section 115BA from assessment year 2020-21 so as to-

(a) Amend marginal heading of Section 115BA to 'Tax on income of certain domestic manufacturing companies'

(b) Amended Section 115BA(1) so as to not give overriding effect of this section to Sections 115BAA and 115BAB;

(c) A new proviso to Section 115BA(4) has been inserted from the assessment year 2020-21 so as to provide that where the person exercises option under Section 115BAA, the option under this section may be withdrawn.

2. Tax at 22% for Certain Domestic Companies