Income Tax Act, 2025
Section 4: Ins. by s. 31, ibid. (w.e.f. 11989).
4. Ins. by s. 31, ibid. (w.e.f. 11989).
5. Subs. by Act 13 of 1989, s. 18, for “the previous year relevant to the assessment year commencing on the 1st day of April,
1989” (w.e.f. 11990).
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Provided that where the assessee makes during the said 1[previous years] any deposit of an amount of
not less than two and one-half per cent of the profits and gains of the life insurance business in the
security fund, the amount of income-tax payable by the assessee under the said clause (i) shall be reduced
by an amount equal to two and one-half per cent of such profits and gains and, accordingly, the deposit of
thirty-three and one-third per cent required to be made under this sub-section shall be calculated on the
income-tax as so reduced].]
2[115BA. Tax on income of certain domestic companies.—(1) Notwithstanding anything contained
in this Act but subject to the 3[other provisions of this Chapter], the income-tax payable in respect of the
total income of a person, being a domestic company, for any previous year relevant to the assessment year
beginning on or after the 1st day of April, 2017, shall, at the option of such person, be computed at the
rate of twenty-five per cent, if the conditions contained in sub-section (2) are satisfied.
(2) For the purposes of sub-section (1), the following conditions shall apply, namely:—
(a) the company has been set-up and registered on or after the 1st day of March, 2016;
(b) the company is not engaged in any business other than the business of manufacture or
production of any article or thing and research in relation to, or distribution of, such article or thing
manufactured or produced by it; and
(c) the total income of the company has been computed,—
(i) without any deduction under the provisions of section 10AA or clause (iia)
of sub-section (1) of section 32 or section 32AC or section 32AD or section 33AB or section
33ABA or sub-clause (ii) or sub-clause (iia) or sub-clause (iii) of sub-section (1) or sub-section
(2AA) or sub-section (2AB) of section 35 or section 35AC or section 35AD or section
35CCC or section 35CCD or under any provisions of Chapter VIA under the heading “C.—
Deductions in respect of certain incomes” other than the provisions of section 80JJAA;
(ii) without set off of any loss carried forward from any earlier assessment year if such loss is
attributable to any of the deductions referred to in sub-clause (i); and
(iii) depreciation under section 32, other than clause (iia) of sub-section (1) of the said
section, is determined in the manner as may be prescribed.
(3) The loss referred to in sub-clause (ii) of clause (c) of sub-section (2) shall be deemed to have been
already given full effect to and no further deduction for such loss shall be allowed for any subsequent
year.
(4) Nothing contained in this section shall apply unless the option is exercised by the person in the
prescribed manner on or before the due date specified under sub-section (1) of section 139 for furnishing
the first of the returns of income which the person is required to furnish under the provisions of this Act:
Provided that once the option has been exercised for any previous year, it cannot be subsequently
withdrawn for the same or any other previous year.]
4[115BB. Tax on winnings from lotteries, crossword puzzles, races including horse races,
card games and other games of any sort or gambling or betting of any form or nature
whatsoever.—Where the total income of an assessee includes any income by way of winnings from any
lottery or crossword puzzle or race including horse race (not being income from the activity of owning
and maintaining race horses) or card game and other game of any sort or from gambling or betting of any
form or nature whatsoever, the income-tax payable shall be the aggregate of—
(i) the amount of income-tax calculated on income by way of winnings from such lottery or
crossword puzzle or race including horse race or card game and other game of any sort or from
gambling or betting of any form or nature whatsoever, at the rate of 5[thirty per cent.]; and
shall be reduced
by an amount equal to two and one-half per cent of such profits and gains and, accordingly, the deposit of
thirty-three and one-third per cent required to be made under this sub-section shall be calculated on the
income-tax as so reduced].]
2[115BA. Tax on income of certain domestic companies.—
Notwithstanding anything contained
in this Act but subject to the 3[other provisions of this Chapter], the income-tax payable in respect of the
total income of a person, being a domestic company, for any previous year relevant to the assessment year
beginning on or after the 1st day of April, 2017, shall, at the option of such person, be computed at the
rate of twenty-five per cent, if the conditions contained in sub-section
are satisfied.
For the purposes of sub-section
the company has been set-up and registered on or after the 1st day of March, 2016;
the company is not engaged in any business other than the business of manufacture or
production of any article or thing and research in relation to, or distribution of, such article or thing
manufactured or produced by it; and
the total income of the company has been computed,—
without any deduction under the provisions of section 10AA or clause
of sub-section
of section 32 or section 32AC or section 32AD or section 33AB or section
33ABA or sub-clause
or sub-clause
or sub-clause
of sub-section
or sub-section
or sub-section
of section 35 or section 35AC or section 35AD or section
35CCC or section 35CCD or under any provisions of Chapter VIA under the heading “C.—
Deductions in respect of certain incomes” other than the provisions of section 80JJAA;
without set off of any loss carried forward from any earlier assessment year if such loss is
attributable to any of the deductions referred to in sub-clause
depreciation under section 32, other than clause
of sub-section
of the said
section, is determined in the manner as may be prescribed.
The loss referred to in sub-clause
of clause
of sub-section
shall be deemed to have been
already given full effect to and no further deduction for such loss shall be allowed for any subsequent
year.
Nothing contained in this section shall apply unless the option is exercised by the person in the
prescribed manner on or before the due date specified under sub-section
of section 139 for furnishing
the first of the returns of income which the person is required to furnish under the provisions of this Act:
Provided that once the option has been exercised for any previous year, it cannot be subsequently
withdrawn for the same or any other previous year.]
4[115BB. Tax on winnings from lotteries, crossword puzzles, races including horse races,
card games and other games of any sort or gambling or betting of any form or nature
whatsoever.—Where the total income of an assessee includes any income by way of winnings from any
lottery or crossword puzzle or race including horse race (not being income from the activity of owning
and maintaining race horses) or card game and other game of any sort or from gambling or betting of any
form or nature whatsoever, the income-tax payable shall be the aggregate of—
the amount of income-tax calculated on income by way of winnings from such lottery or
crossword puzzle or race including horse race or card game and other game of any sort or from
gambling or betting of any form or nature whatsoever, at the rate of 5[thirty per cent.]; and