In order to provide stimulus to companies so as to push economic growth, the Taxation Laws (Amendment) Act, 2019 has introduced new reduced tax rate regime for domestic companies. For this purpose two new sections viz section 115BAA and section 115BAB have been inserted with effect from the assessment year 2020-21 for providing option to companies to avail of benefit of the reduced tax rates. The newly inserted section 115BAA provides a reduced rate of 22 per cent for all domestic companies and section 115BAB provides a reduced rate of 15 per cent in case of new domestic manufacturing companies including electricity generation company. However, when a company opts for the reduced tax rate regime it will have to forgo the benefit of various exemptions, deductions or incentives available under the Income Tax Act. Therefore, it becomes necessary on the part of company to undertake a detailed cost benefit analysis before exercising any option of reduced tax rates.

The present book aims at providing a ready referencer as regards Corporate Taxation. A part namely 'Various Options from Tax Rates Point of View' is devoted for analysing the various features of the 'new tax regime enabling the users to make proper planning while switching over to the new regime or while starting a new company.

Apart from this, other important provisions under the Income Tax Act, particularly governing company taxation, have been discussed with a view to provides a complete and purposeful guide for purpose of proper tax planning from companies point of view.

The tax implications in investors' hands has also been covered though in brief, yet meaningfully in the context. Now a days mutual fund has become a popular medium of investment. The present book, therefore, incorporates Taxation of Mutual Funds and of its Investors as well.

The subject matter of this book is divided in Thirteen self expressive and self-contained Parts, as under --

Part I


Options Available to Companies from Tax Rate Point of View

Part II


Minimum Alternate Tax (MAT)

Part III


Tax Treatment of Dividend

Part IV


Taxation of Mutual Funds and Investors Therein

Part V


Taxation of Investors Income from Share Dealings

Part VI


Handling of Depreciation by Companies

Part VII


Certain Issues Relevant to Company Taxation



Income Computation by Companies

Part IX


Availability of Deduction Under Chapter VI-A of Income Tax Act

Part X


Business Reorganisation

Part XI


Company in Liquidation

Part XII


Various Tax Obligations



Accounting and Audit

There are as many as 85 Chapters in the book, unfolding various issues relating to Corporate Taxation. The purpose of this book would be well served if it helps to the concerned executive to take a right decision in the current scenario.

We are very certain in our minds that the framework of this product of ours will be fully appreciated and also recognised as the firstever devised and scientifically presented literature on the related subject. Even so, there is always room for corrections, adjustments and improvements which we would be willing to take care of at the earliest possible opportunity, and for which indulgence of, and feedback from its readers is solicited.

Accompanying free website support comprises Full Reports of all decisions cited in the text of the book and also includes reproduction of the Circulars, Notifications, instructions, etc., referred to in this book. The change(s), if any, in the subject matter will also be provided on website till 31-12-2020.

Disclaimer: The subject matter of the book is updated in the wake of Finance Bill, 2020. In case there is any changes while passing the Finance Bill, 2020 the same will be provided on our website.



8 FEBRUARY, 2020