Several manufacturing
companies will face uncertainty following the interim Union Budget 2024 as the
government has not specified any provision to extend the special tax rate of 15
percent applicable to new manufacturing units that begin production before
March 31, 2024.
This could potentially increase the tax outgo of some manufacturing by 7
percent, say tax experts.
According to tax experts, the budget documents are silent about extending the
applicability of the Section 115BAB of the Income Tax Act. The section provides
a beneficial tax rate of 15 percent to companies incorporated post 2019 and who
begin their manufacturing before March 31, 2024.