Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Top Headlines »
Open DEMAT Account in 24 hrs
 8 reasons why old tax regime is still attractive for many taxpayers in this income tax bracket
 March 31 deadline is getting near. How to save income tax with tax loss harvesting?
 45-day MSME payment rule: Impact and details of Section 43B(h) explained
 Small savings schemes that offer tax benefits of up to Rs 1.5 lakh under section 80C
 RE-OPENING OF CORRECTION WINDOW FOR MAY 2024 CA EXAMINATIONS
 Powerful Upgrades, Tally 12+1 months renewal Plan and Connected Services for your growing Business - March 2024
 How innovative solutions can help fix the Sec 43B conundrum for MSMEs
 Income Tax dept asks many individuals to explain high value transactions of FY20-21 as Updated ITR deadline nears
 Release Notes for TallyPrime and TallyPrime Edit Log Release 4.1 | What s New!
 Deadline to file updated ITR FY20-21 ends on March 31: Details on additional tax
 4 tax-planning mistakes to avoid this season

Clarification in respect of option exercised under section 115BBA of the Income-tax Act, 1961 inserted through the recent Ordinance
October, 03rd 2019
                                                                                                                -
                                                                                  Cin:ular No  / 2019
                                           F. No. 142f2012019·TPL
                                             Go~'cmmcn1   of India
                                            Minist!)' of filllUlCC"
                                          Ocpanmcnl of Revenue

                                                    .....
                                        Ccnlnd Iloard of Direct Taxes

                                                                         Nt' ..· Drlhi. 2'" of OClobc'r, 2019

Subj«l: Cl uifiutionl in rt'!lpttl of oplion unciscd under Hction 115RA, of t he In come-
        1-": Ac l, 1961 inicrled throu gh The Ta ution Laws (Am endment) Ordinance.
        20 19· KI:.

      The Ta~31ion Laws (Amcoomcnl) Ordinance, 2019 (the Ordinance) has been promulgated
by the President of India on September 20. 2019, lbc Ordinance. inter alia. inscrtl-d a new
section IISBAA in the Income-Iall Act. 1961 (the ACI) wilh effect from April 1. 2020.
2.          Section 115111/ so inserted. inter "lia, provides that,-
      (d)    IIdomestic compon)' shall. III ils opt ion. pay lax al a lower rale of 22 per cenl for any
             previous yellT relevant 10 the Assessment Year beginning on or after 1" April 2020.
             subjcct to certain conditions. including that the total income ~hould be computed
             without claiming any deduction or exemption:

      (e)    the option is required to be cxen;iSl!d by thc company before the due datc of furnishing
             return of income: and

      (f)    the option. once exen;:iSI.,d. cannot be subsequcntly withdra\TI and shall apply to all
             subsequent assessment )'cars.






3.     ll1C Ordinance also amended seclion 115JB ofthc Aet n;:latingto Minimum Alternate Tax
(MA'I) so lIS to. inter alia. provide that thc provisions of said section shaJloot apply to a person
woo has eXl:n;:iscd thc option referred to und(:T newly inscned section 115BAA.
4.     Representations have bttn recei,"Cd from the stakeholders seeking clarification on
following issues relating to exertisc of oplion under seclion 115BAA:

      (a)    Allo",ability of brought forward loss on account of additional depreciation: and
      (b)    AlloWllbil ity of brought fornlUtl MAT credit.

4.1         These issues have been examincd in !he Hoard and in order to provide clarity in the
mailer. the clarifications are issued in following paras.
S.l     As regards ollowobili ty of brought forward loss on account of additional depreciation. it
may be noted that clause (i) of sub-section (2) of the newly inscned section l15 BAA. infer alia.
provides that the total income shall be computed without claiming any deduction under clause
(iia) of sub-section ( I) of section 32 (additional depreciation): and clouse (ii ) of the said sub-
                                                                                                    ·




section provide! thai the lOla! income shall be computed without claiming sel ofT of any 10$$
canied forward from any earlier a5SC'>smcnt year if the same is allribulablc. j/llcr uliu. 10
additional depredation.
05.1.1 Therefore, a domestic company which ,,'ould exercise option for 3'ailing beroc:fit of lo"cl'
lax rate uno:Icr section 11 SflAA shall 1101 be allowed  claim SCI ofT of any brought forv.'afd toss
on account of additional depreciation for an Assessment Year for "hich the option has been
exercised and [or any subsequent Assessment Year.

S.1.2   Further. as there is 00 lime line within which option under SCi:tion 1I5BAA can be
cxercised. it may be noted thaI a domestic company having brought forward losses on account of
additional dcprecitllion may. if it so desires. exercise the option after sci ofT of the losses so
accumulated.
5.2     As regards allowabilil)' of brought forward MAT credit. it may be noted thai as the
provisions of SC(:tion I J 5JB relating to MAT itsel f shall not be applicable to the domestic
company which exereises option under =:tion 115BAA. it is hereby clarified that the t!IX credit
of MAT paid b)' the domestic comr",ny exercising option under section 115BAA of the Act shall
nol be available consequent 10 cllcrcising of su,h option.

5.2.1 Further, as there is no lime line within which option under section 1l5BAA can be
exercised, it may be noted that a domestic ~ompan}' having credit of MAT may, if it 50 desires.
exercise the option after utilising the said cn..'

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting