Taxation
- Corporate Tax
Introduction|
Corporate Taxable Income |
Assessment and rate of tax | Minimum Alternative
Tax (MAT) | Depreciation,
set-off, carry forward | Tax
on Distributed Profits |
Rebates and allowances
for the corporate sector | Tax Holiday in
Free Trade Zones |
Assessment and Rate of Income Tax
|
| For
the Assessment Year 2007-08 |
| Description |
Existing
Rate* (%) |
Proposed
Rate* (%) |
Difference
+ - = (%) |
| Domestic
Company |
| Regular
Tax |
33.6 |
33.9** |
+0.33
|
| MAT |
11.22
(of book profits) |
11.33
(of book profits) |
+0.11 |
| DDT |
14.025 |
16.995 |
+2.97 |
| Foreign
Company |
| Regular
Tax |
41.82 |
42.33# |
0.41 |
*It includes the
applicable surcharge and the education cess.
**If the income is equal or less than Rs 10 million, it is 30.9%.
#If the income is equal or less than Rs 10 million, it is 41.2%.
Assessment of companies :
The principle officer of the
company is required to file the return of total income of the
company on or before 30th November of the
assessment year. A
company is assessed like any other assessee. However, its liability
differs in two respects.
- No exemption limit : A
company does not enjoy any exemption limit
- Flat rate of Tax : A
company pays income tax at a flat rate instead of slab rate
Rates of Income Tax :
The rates which are applicable to companies for the assessment year
1998-99 are
| Category |
Rates |
| Tax on
long-term capital gains |
20 % |
| Tax on
winnings form lotteries, cross word puzzles, races etc. |
40% |
Tax on any
other income
a) domestic company
b) foreign company |
35%
48% |
|
|
|
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