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Section 115BAA concessional regime for domestic companies is at:
A30% basic + 12% (per relevant Section)
B25% basic + 7%
C22% basic + 10% surcharge + 4% cess
D20% flat
Answer & Solution
Correct answer: C. 22% basic + 10% surcharge + 4% cess
1. Section 115BAA: optional 22% basic rate for domestic companies.
2. Effective: 22% × 1.10 (surcharge) × 1.04 (cess) = 25.168%.
3. Specified deductions/exemptions (35AD, additional depreciation) forgone; option irrevocable.
_Source: ICAI BoS CA Final Paper 7, Ch 9 "Assessment of Various Entities"_
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