The Decade of Innovations
Roots to Wings

The result –, a one stop shop knowledge portal entirely dedicated to understanding, interpreting and dissecting the all-pervasive and powerful Insolvency and Bankruptcy Code, 2016 with its Rules and Regulations and periodic amendments.

Launched by Dr. M.S. Sahoo, the Chairman of the Insolvency and Bankruptcy Board, the portal shares judgments of over 3,000 cases (and counting) from the NCLT, NCLAT and the Supreme Court.

Like in the case of “The Law Tree” the mandate was simple and clear – to enable people from all spheres to understand the crux of important IBC judgments by condensing the whole judgment to bare minimum of one or two paragraphs. Better content and crisp details helps any-one understand judgements without having to know the law.

The USP of the website: Providing relevant, uncluttered information with a user-friendly interface to enable easy access to the website and conduct quality legal research without actually having to meander through the intricate legal system itself.

Every edition covers the most important recent happenings. It engages the reader to immerse in the content and understand the same. The relevant illustrations, graphics and templates ensure for each judgment acts as a pre cursor about what the case will deal with.

We take pride in the fact that be it the IBCcases or The Law tree, our flagship services to the society at large, it has been specifically designed to cater to people from different  walks of life – laymen, law graduates, advocates, law firms, Judges, Company Secretaries, Chartered Accountants and Companies and businesses.

As pioneers in the IBC web space, it is our humble gesture to give back to the society at large, quality services in a simple yet effective manner. This has organically increased our reader / subscriber base continuously.

To quote the great Helen Keller – “Alone we can do so little; together we can do so much.” It is true for AKM, The Law Tree  and as well. We owe the success of each of our endeavour to a strong and driven team of associates, graphic designers and content writers who pour their very best into each edition.

Looking ahead gives one opportunities. At AKM, that is exactly what we do. As we go about enthusiastically putting together our glossy 50th edition of the Law tree and in keeping in line with our motto of knowledge sharing, we are happy to share the latest key changes in the Income Tax rates that were promulgated through an ordinance – The Taxation Laws (Amendment) Ordinance 2019. These changes have been compiled by noted Chartered accountant and Author of “Mergers et al”:

Changes in the Income Tax Act Rates through Ordinance

In order to give a  great thrust  to the economy , the Government , on 20 th September 2019, promulgated an ordinance – called The Taxation Laws ( Amendment ) Ordinance -2019 . This ordinance which is applicable for the current financial year  FY2019-20 ( AY 2020-21) has given certain NEW WAYS to reduce the effective corporate tax for companies paying more than 25.17 %  by allowing them to exercise option at the time of filing the Return for the year ended 31-3-2020

Some Salient Features of this Ordinance are:

For companies paying effective tax more than 25.17%:


If these companies , ready to forego certain allowances like additional depreciation or contribution to Scientific research Institutions  ( deduction under section 35 (1) (ii) etc ) or certain deductions falling under part C of Chapter VIA  ( excepting deduction under section 80 JJ AA )or deductions under  Sec 32AD , 10AA, , sec 35 CCC, or sec 35CCD  or any losses attributable to these sections , they can opt for lower tax at 22  % ( plus fixed surcharge of 10 % plus 4 % cess )aggregating to  25.17 % from the present rate ;

Some important conditions are :

  • Option once exercised cannot be with drawn ;
  • MAT will not be applicable
  • MAT credit will not be available for future set off ; ( Government has stated that the companies can exhaust MAT credit first and then can switch over)
  • MAT rate reduced from 18.5 % to 15 % for all assessees

The advantages are :

  • Companies can pay lower advance tax for the current Financial year even though the option has to be exercised on the due date of filing the Return in sep / November 2020.
  • There are ways to reduce even the new rate below 25.17%
  • Even GAAR will not be applicable here



Tax rate for manufacturing companies @ 15 % plus  surcharge plus cess @17.16 %

Newly started  companies set up  and registered after 1-10-2019 engaged solely in the manufacturing or production of article and research in relation to or distribution of such manufactured articles – is eligible to opt for tax rate @ 15 % , subject fulfilment of certain conditions ;Even MAT will  not be applicable to these companies. Even these companies cannot claim those allowances like additional depreciation etc as mentioned in the sec115BAA. Both these new sections have galvanised the approach of big corporates on their future expansion plans , and also started the process of  achieving  zero debt company status . Even Companies having SEZ and enjoying tax holiday benefits are contemplating big corporate restructuring exercise like amalgamation / demerger etc so that in the next few years they will move into lower effective tax rate.

Before exercising the option under above stated sections though, it is advisable for Corporates / Startups to have a clear vision about the future expansion plans of the business.


P S Suman

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