Income-tax Act, 1961Section 115BA
- 25% rate for manufacturing companies incorporated on or after 1 March 2016
- Without specified deductions
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 115BA
Tax rates & regimeSection 115BA → Section 199
25% tax option for manufacturing companies set up after 1 March 2016
Section 115BA of the old Income-tax Act, 1961 · new section 199 under the Income-tax Act, 2025
New reference Section 199
Income-tax Act, 2025Section 199
- Same option, now section 199
- Conditions: set up after 1 March 2016, only manufacturing/research/distribution of own products, no specified deductions
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Renumbered.
Practice notes
- Most companies now prefer section 200 (22%).
Frequently asked
What is section 115BA called in the new Income Tax Act 2025?
Section 199: optional 25% rate for manufacturing companies set up on or after 1 March 2016.
What is section 115BA called in the new Income-tax Act, 2025?
Section 115BA of the Income-tax Act, 1961 corresponds to Section 199 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 115BA under the new Income Tax Act?
Renumbered.
Is section 115BA still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 115BA of the 1961 Act. Section 199 of the 2025 Act applies from tax year 2026-27.