Income Tax Rates for Companies | Income Tax Rates for Partnership Firms | AY 20-21 | Taxpundit
Normal tax rates applicable to a firm :-
A firm is taxed at a flat rate of 30%. Apart from tax @ 30%, Health and Education Cess is levied @ 4% of income-tax.
Surcharge : Surcharge is levied @ 12% on the amount of income-tax where net income exceeds Rs. 1 crore. In a case where surcharge is levied, health and education cess of 4% will be levied on the amount of income-tax plus surcharge.
However, marginal relief is available from surcharge in such a manner that in the case of a person having a net income of exceeding Rs. 1 crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
AMT : In the case of a non-corporate taxpayers to whom the provisions of Alternate Minimum Tax (AMT) applies, tax payable cannot be less than 18.5% (+SC+HEC) of "adjusted total income" computed as per section 115JC.
Normal Tax rates applicable to a domestic company :-
- Where its total turnover or gross receipt during the previous year 2017-18 does not exceed Rs. 400 crore = 25%
- Where it opted for Section 115BA = 25%
- Where it opted for Section 115BAA = 22%
- Where it opted for Section 115BAB = 15%
- Any other domestic company = 30%
Surcharge : In addition to tax at above rate, surcharge is levied @ 7% on the amount of incometax if net income exceeds Rs. 1 crore but does not exceed Rs. 10 crore and @ 12% on the amount
of income-tax if net income exceeds Rs. 10 crore. In a case where surcharge is levied, health and education cess of 4% will be levied on the amount of income-tax plus surcharge.
However, marginal relief is available from surcharge in such a manner that in the case of a company whose net income exceeds Rs. 1 crore but does not exceed Rs. 10 crore, the amount payable as income-tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
In case of a domestic company whose net income exceeds Rs. 10 crore, marginal relief is available from surcharge in such a manner that the amount payable as income-tax and surcharge shall not exceed the total amount payable as income-tax and surcharge on total income of Rs. 10 crore by more than the amount of income that exceeds Rs. 10 crore.
Note: The rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be flat 10% irrespective of amount of total income.
Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.
MAT : In the case of a corporate taxpayer to whom the provisions of Minimum Alternate Tax (MAT) applies, tax payable cannot be less than 15% (+HEC) of "Book profit" computed as per section 115JB. However, MAT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of a company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange.
Normal tax rates applicable to a foreign company :-
A foreign company is taxed at a flat rate of 40%. Apart from tax @ 40%, Health and Education Cess is levied @ 4% of income-tax.
Surcharge : In addition to tax at above rate, surcharge is levied @ 2% on the amount of incometax if net income exceeds Rs. 1 crore but does not exceed Rs. 10 crore and @ 5% on the amount of income-tax if net income exceeds Rs. 10 crore. In a case where surcharge is levied, health and education cess of 4% will be levied on the amount of income-tax plus surcharge.
However, marginal relief is available from surcharge in such a manner that in the case of a foreign company whose net income exceeds Rs. 1 crore but does not exceed Rs. 10 crore the amount payable as income-tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
In case of a foreign company whose net income exceeds Rs. 10 crore, marginal relief is available from surcharge in such a manner that the amount payable as income-tax and surcharge shall not exceed the total amount payable as income-tax and surcharge.
MAT : In the case of a corporate taxpayer to whom the provisions of Minimum Alternate Tax (MAT) applies, tax payable cannot be less than 15% (+HEC) of "Book profit" as per section 115JB. However, MAT is not applicable where Govt of India has entered into an agreement u/s 90 and 90A.
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Пікірлер: 28
Good
Dear sir company and company individual means founder can both necessary pay tax
is income from pvt ltd company or partnership firm is exempt from individual tax filing
Sir does individual income tax is applied after tax deducted in partnership firm for partners above 1cr ?
Sir agar domestic company koi dividend pay karati hai to tax rate kya hoga 20.5553 Or _?
what is corporate for companies relevat from Financial year - 2019-20
Sir under which section normal tax rate for companies is prescribed???
Thank you
what is corprate tax rate applicable for A Y -2020-21
Sir, kya ek professional app banane ke liye ya phir banane ke bad company registration karna hota hai jaise ki private limited company , llp etc.
Sir agar ek company mein profit k baad corporation tax pay kr diya h, to kya uske owners ko income tax bhi pay Krna padega ??
LLP company Maine start kar di hai. LLP COMPANY ke liye mera budget 50 thousand hai lekin mujhe our money ki requirement hai MINIMUM 1LAC kya mujhe government scheme se startup loan mil jayega?
I have a small investor who has trading account with zerodha. I want to know is it better to continue to as individual account or shall I form a company and open new account to trade stocks by a investing my money in the company’s name. This purely tax related question. I know as an individual I have to pay taxes as per slabs. However I am not clear if forming company and trade through it will be beneficial.
Sir for e buplishing how much tax will be payable
Hello Sir,
sir clear krke smjhaiye isme total dena kitna h wo to smjh nhi aaya
सर, कम्पनी का tax liability का calculation एक उदाहरण के साथ बनाएं
1)LLP company kaise chalate hai?
Nice explanation sir
Sir mere papa ke name par license hn ..mere name as a employ ka hn kya ITR mein apne name pr fill kr sakta hu kya pls bto (tolal sale 18 lakh pr year ...income 3 lakh 40 hazar)