💰 Tax Savings · Structure & split income
New manufacturing company — 15% tax rate (Section 199, old 115BAB)
✍️ EaseValue Advisors · Updated 17 Jul 2026 · FY 2025-26
In short
A new domestic manufacturing company can opt for a flat 15% tax rate — the lowest corporate rate (≈17.16% all-in) — Section 199, Income-tax Act 2025 (old 115BAB).
The rate
15% base for eligible new manufacturers — a major advantage for setting up fresh production capacity.
Conditions
- Company incorporated on/after the notified date and begins manufacturing by the cut-off.
- Doesn't use old plant/building beyond the permitted limit; gives up other incentives.
The law behind it
Section 199 (old 115BAB)
General information for FY 2025-26 (AY 2026-27), not advice on your specific case. Limits, rates and conditions
change with each Finance Act and depend on your facts — confirm before acting. © EaseValue Advisors LLP.
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