A recent ruling by the SMC Bench of the ITAT Delhi in the case of Maharishi Education Corporation Pvt. Ltd. has created significant discussion — and confusion — around whether opting for the concessional corporate tax regime under Section 115BAA results in losing concessional tax rates on capital gains under Sections 111A, 112 and 112A.
Given the potential impact on corporate taxpayers, scrutiny assessments, CPC processing, and our ongoing advisory work, we have prepared a detailed analysis along with practical action points.
The article covers the following key questions:
1. Whether Section 115BAA overrides special LTCG/STCG rate provisions?
2. Whether LTCG would be taxed at 22% if a company opts for 115BAA?
3. Whether similar implications apply to Individuals/HUFs/AOPs/BOIs/Co-operative Societies under the new regime?
4. What taxpayers should practically do in ongoing scrutiny, appeal, and return-processing scenarios?
5. How to safeguard tax positions until higher judicial clarity is issued?
PDF is attached below.
About the Author: CA Harshil Shah is a Partner at P C Ghadiali and Co LLP, Mumbai. With over 9 years of progressive experience in the field of Direct and Indirect Taxation, Audit, Litigation Support, and Regulatory Compliance, he brings a strong blend of financial expertise and legal acumen. A qualified lawyer and certified in Cyber Law, he combines legal insight with financial expertise, offering holistic solutions to clients across industries. His practice also extends to international taxation and UAE Corporate Tax advisory. With a strong grasp of regulatory developments and a solution-oriented approach, Harshil is committed to providing accurate, strategic, and timely guidance to individuals, corporates, LLPs, and charitable institutions. He holds a Chartered Accountancy qualification from ICAI, an LLB from MKES College of Law, and a Diploma in Cyber Law from the Asian School of Cyber Laws. His multi-disciplinary background enables him to provide holistic advisory services to businesses navigating regulatory, legal, and technological challenges.
Pdf file of article: Click here to Download
Posted on: November 26th, 2025
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