Section 200 of the Income Tax Act, 2025 (formerly Section 115BAA of the 1961 Act) & Companies Act, 2013

Corporate Tax & Business Advisory

Comprehensive corporate direct tax advisory under Section 200 of the Income-tax Act, 2025 (formerly Section 115BAA of the Income-tax Act, 1961), Minimum Alternate Tax (MAT) computations, Section 43B(h) MSME payment compliance, startup tax holidays, and tax-neutral corporate restructuring.

CA Due Diligence

Official Portal Filing

State Stamp Advisory

Corporate Tax & Business Advisory Statutory Advisory

Turnkey Statutory Filing

MCA & Tax Practice

Official Govt of India AuthorityCentral Board of Direct Taxes (CBDT), Ministry of Finance, Govt of India

Income Tax e-Filing Official Portal

The official Government of India portal for corporate ITR-6 filing, Form 10-IC concessional regime exercise, advance tax verification, and AIS/TIS annual reporting.

Visit Govt Portal

STATUTORY OVERVIEW

Corporate Taxation & Business Tax Advisory

Corporate direct taxation in India is currently transitioning into the modernized framework of the Income-tax Act, 2025, operating alongside historical and ongoing compliance under the Income-tax Act, 1961. Domestic and multinational corporate entities navigate evolving concessional tax regimes, dynamic deduction thresholds, Minimum Alternate Tax (MAT) calculations, and statutory timelines. Our advisory assists corporate boards, finance directors, and private limited enterprises in understanding tax positions, evaluating statutory incentives, and maintaining full compliance with Central Board of Direct Taxes (CBDT) notifications.

Statutory & Practice Summary • At-A-Glance

ICAI UDIN Authentication Mandate

Governing Framework

Section 200 of the Income Tax Act, 2025 (formerly Section 115BAA of the 1961 Act) & Companies Act, 2013

Regulatory Authority

Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance, Govt of India

Professional Assurance

Chartered Accountants Attestation under ICAI Standards & Code of Ethics

DOCUMENTATION MATRIX

Mandatory Documents Checklist

Self-attested scanned copies required

1. Promoters / Partners / Directors KYC

✓Certificate of Incorporation (CIN), Memorandum & Articles of Association (MoA & AoA)
✓Corporate Permanent Account Number (PAN) Card and Tax Deduction Account Number (TAN)
✓Digital Signature Certificates (Class 3 DSC) of the Managing Director / Authorized Signatory
✓List of Directors with DIN, Residential Addresses, and Contact Details
✓Latest Form 26AS, Annual Information Statement (AIS), and Taxpayer Information Summary (TIS)

2. Registered Office & Premises Proof

✓Registered Office utility bill (Electricity / Water bill not older than 2 months)
✓Principal Bank Current Account statements with IFSC details for statutory refund credits

3. Specific Statutory Declarations & Enclosures

•Audited Financial Statements (Balance Sheet, Profit & Loss Account, Notes to Accounts, and Cash Flow Statement)
•Statutory Tax Audit Report in Form 3CA/3CD with detailed 44-clause disclosures
•Aging schedule of trade payables at financial year-end to verify adherence to MSME payment deadlines [formerly Section 43B(h)]
•Computation of book profits and unutilized MAT credit ledgers [formerly Section 115JAA]
•Form 10-IC e-filing acknowledgment for opting into Section 200 (formerly Section 115BAA) concessional corporate regime

PROCEDURAL ROADMAP

Step-by-Step Filing & Approval Process

Structured execution roadmap managed by our Chartered Accountants from pre-filing due diligence to certificate allotment.

01Week 1

Tax Diagnostic & Regime Selection

Evaluating the financial viability of electing Section 200 (formerly Section 115BAA 22% rate) vs. conventional regime with accumulated MAT credits.

02Week 2

Statutory Disallowance & MSME Audit

Reviewing year-end trade payables for MSME UDYAM verification [formerly Section 43B(h)] and reconciling statutory employer PF/ESI contributions.

03Week 3

Tax Audit & Form 3CD Certification

Statutory audit verification of corporate ledgers under Section 63 (formerly Section 44AB), generating UDIN, and e-filing Form 3CA/3CD.

04Week 4

ITR-6 Electronic Filing & Verification

Submitting electronic corporate return Form ITR-6 with digital signatures on the CBDT portal, tracking processing status, and managing refunds.

Concessional Corporate Regimes & Regime Selection Analysis

The introduction of Section 200 of the Income-tax Act, 2025 (formerly Section 115BAA of the Income-tax Act, 1961), providing a 22% base corporate tax rate for domestic companies, represents a pivotal choice compared to conventional tax frameworks. Evaluating the financial viability of exercising this regime requires rigorous examination of foregone incentives (such as scientific research deductions and accelerated depreciation), accumulated MAT credit balances, and long-term capital deployment plans.

Section 200 (formerly Section 115BAA)

22% Base Rate

Applicable to existing and newly incorporated domestic companies subject to the statutory condition of surrendering specified tax holidays, exemptions, and accelerated allowances.

Minimum Alternate Tax (formerly Section 115JB)

15% Book Profit Tax

Calculation of book profits under Ind AS / AS frameworks, tracking statutory additions and deductions, and utilization of MAT credit carry-forwards.

Comparative modeling: Conventional tax regime with Chapter VI-A deductions vs. Section 200 of the Income-tax Act, 2025 (formerly Section 115BAA of the Income-tax Act, 1961)

Assessment of unutilized MAT credits under Section 115JAA prior to exercising the concessional regime choice

Evaluation of foregone investment allowances, additional depreciation, and sector-specific deductions

Statutory filing of prescribed electronic declaration forms within mandated due dates to exercise the regime choice

Statutory Disallowance Rules & Section 43B(h) MSME Compliance

Under the statutory deduction rules of the Income-tax Act, 2025 (formerly Section 43B(h) of the Income-tax Act, 1961), payments due to micro and small enterprises registered under the MSMED Act, 2006 must be settled within statutory timelines (15 days in absence of agreement, or up to 45 days under written agreement). Any delayed payment beyond the agreed period is disallowed as a business deduction in the year of accrual and allowed only upon actual disbursement. Corporate entities require robust accounts payable audits and vendor classification protocols to prevent substantial tax additions.

Vendor classification and UDYAM registration verification for micro, small, and medium suppliers

Aging schedule reconciliation of trade payables at financial year-end to verify adherence to statutory MSME payment deadlines

Reconciliation of statutory liabilities (formerly Section 43B of the Income-tax Act, 1961) including employer PF/ESI contributions before ITR due dates

Documentation of written contracts and payment voucher audit trails to support statutory expenditure deductibility

Startup Taxation & Corporate Restructuring Advisory

Following the legislative abolition of the Angel Tax provision (formerly Section 56(2)(viib) of the Income-tax Act, 1961) effective Assessment Year 2025-26, early-stage and growth enterprises operate under an unencumbered capital raising framework. In addition, eligible DPIIT-recognized startups require advisory to claim 100% profit deductions under the startup provisions of the Income-tax Act, 2025 (formerly Section 80-IAC of the Income-tax Act, 1961). For mature enterprises, corporate restructuring—including amalgamations, demergers, and slump sales (formerly Section 50B)—demands rigorous verification of tax-neutrality criteria (formerly Section 47).

Startup Deductions (formerly Section 80-IAC)

DPIIT Startups

Facilitating application filings with the Inter-Ministerial Board (IMB) and verification of eligible turnover thresholds for 3 consecutive tax holiday years.

Slump Sale & Restructuring (formerly Section 50B)

Tax Neutrality

Net worth determination, Form 3CEA certification by a Chartered Accountant, and tax-neutral business transfers under statutory re-organization provisions.

Corporate Tax Statutory Matrix: Income Tax Act, 2025 vs Income Tax Act, 1961

Corporate entities operating in India require clear statutory clarity regarding how the modernized sections of the Income Tax Act, 2025 map against the predecessor sections of the Income Tax Act, 1961.

The following statutory comparative matrix outlines the governing sections, legal rules, and strategic corporate tax advantages across both legislative codes:

Corporate Tax Parameter	Governing Section: New Act 2025 (Old Act 1961)	Statutory Rule & Strategic Corporate Advantage
Concessional Corporate Tax Slab	Section 200 of Income Tax Act, 2025 (formerly Section 115BAA of 1961 Act)	Flat 22% base corporate tax rate (effective ~25.17% inclusive of surcharge & cess) with complete exemption from Minimum Alternate Tax (MAT).
Minimum Alternate Tax (MAT)	Book Profit Provisions, 2025 Act (formerly Section 115JB of 1961 Act)	Mandatory 15% tax on adjusted book profits for companies under the normal tax regime; MAT credits can be carried forward up to 15 assessment years.
MSME Timely Payment Deductions	Statutory Payment Rules, 2025 Act (formerly Section 43B(h) of 1961 Act)	Disallowance of trade payables to Micro & Small enterprises if unpaid beyond 15/45 days; deductible only in the year of actual payment.
Startup 100% Tax Holiday	Eligible Startup Provisions, 2025 Act (formerly Section 80-IAC of 1961 Act)	100% deduction of profits for 3 consecutive assessment years out of 10 years for eligible DPIIT-recognized startups.
Angel Tax Abolition	Share Premium Taxability Omitted (formerly Section 56(2)(viib) of 1961 Act)	Zero tax scrutiny on share premium received above fair market value from resident or non-resident investors, facilitating friction-free fundraising.
Slump Sale & Demerger Tax Neutrality	Business Reorganisation, 2025 Act (formerly Sections 47 & 50B of 1961 Act)	Tax-neutral transfer of corporate undertakings as a going concern, with CA net worth certification on Form 3CEA.

ONGOING GOVERNANCE

Mandatory Post-Registration Compliances

Failing to complete statutory post-incorporation actions carries steep daily penalties. Our CA firm manages continuous compliance:

Challan 280 / IT Portal15th June, 15th Sept, 15th Dec, 15th March

Quarterly Advance Tax Installments

Mandatory payment of 15%, 45%, 75%, and 100% of assessed corporate tax liability to avoid mandatory interest u/s 234B and 234C.

Form 10-ICBefore ITR Due Date (October 31st)

Form 10-IC Electronic Declaration

Mandatory one-time electronic filing on the income tax portal to exercise the 22% concessional corporate rate u/s 200 (formerly Section 115BAA).

Form 3CA & Form 3CDBy 30th September / 31st October

Tax Audit Report Filing (Form 3CA/3CD)

Statutory CA certification under Section 63 (formerly Section 44AB) with unique Document Identification Number (UDIN).

Form ITR-6By 31st October

Annual Corporate Return (Form ITR-6)

Comprehensive e-filing of corporate tax return with audited balance sheet disclosures and schedule-wise reconciliations.

FREQUENTLY ASKED QUESTIONS

Statutory FAQs & Practical Guidance

Frequently asked questions and procedural guidance regarding Corporate Tax & Business Advisory.

Can an existing company switch to Section 200 (formerly Section 115BAA) at any time?

Yes, an existing domestic company can elect the 22% concessional tax regime under Section 200 by filing Form 10-IC electronically on or before the due date specified for filing the return of income under the Income-tax Act. Once exercised, this option cannot be withdrawn for the same or subsequent financial years.

What happens to accumulated MAT credit if a company opts for Section 200?

When a company exercises the option to be taxed under Section 200 of the 2025 Act (formerly Section 115BAA), any accumulated Minimum Alternate Tax (MAT) credit standing in its books under the predecessor Section 115JAA cannot be utilized against future tax liabilities. Therefore, a careful financial model must be built to determine whether it is better to exhaust MAT credits first before exercising the option.

Does Section 43B(h) apply to Medium enterprises or traders?

No. Section 43B(h) applies strictly to Micro and Small enterprises engaged in manufacturing or rendering of services. As per CBDT guidelines and the MSMED Act, 2006, enterprises registered purely as wholesale or retail traders are not covered under the disallowance provisions of Section 43B(h).

What is the penalty for late filing of Form ITR-6 for corporate assessees?

Corporate assessees are mandatorily required to e-verify Form ITR-6 with digital signatures by October 31st (or November 30th for entities with transfer pricing transactions). Late filing attracts mandatory fees under statutory rules (formerly Section 234F), interest on unpaid taxes under Sections 234A, 234B, and 234C, and loss of the right to carry forward business losses (other than unabsorbed depreciation).

STATUTORY ADVISORY DESK • PRACTICE INQUIRIES

Statutory Inquiries & Practice Advisory

In strict conformity with ICAI Council Guidelines No. 1-CA(7)/06/2004, professional engagements for Corporate Tax & Business Advisory are accepted following formal conflict verification and statutory documentation. Contact our registered practice offices for procedural guidance.

Contact Practice Office +91 99140-14949