New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Under Section 115BA of the Income Tax Act, which of the

    following conditions must be met for MSMEs to benefit from a reduced tax rate of 25%?
    A The company must have a turnover of up to ₹100 crore. Correct Answer Incorrect Answer
    B The company must be engaged in a non-manufacturing business Correct Answer Incorrect Answer
    C The company must be a public sector enterprise Correct Answer Incorrect Answer
    D The company must have a turnover of up to ₹400 crore Correct Answer Incorrect Answer
    E The company must have a foreign ownership of at least 51%. Correct Answer Incorrect Answer

    Solution

    Section 115BA of the Income Tax Act reduces the tax rate to 25% for eligible domestic manufacturing companies, including MSMEs, with a turnover of up to ₹400 crore. This concession encourages growth in the manufacturing sector.

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