Tax Slabs for Domestic Company for AY 2021-22

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Tax Slabs for Domestic Company for AY 2021-22

Overview : Income tax Slab rate for Private Company in india

Tax Slabs for Domestic Company for  AY 2021-22

Condition Income Tax Rate (excluding surcharge and cess)
Turnover or Gross Receipt in previous year 2018-19 not exceed ₹ 400 crores 25%
If opted for Section 115BA 25%
If opted for Section 115BAA 22%
If opted for Section 115BAB 15%
Any other Domestic Company 30%

 

Surcharge, Marginal Relief and Health & Education Cess

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What is Surcharge?

Surcharge is an additional charge levied for persons earning income above the specified limits, it is charged on the amount of income tax calculated as per applicable rates

  • 7% - Taxable income above ₹ 1 crore– Up to ₹ 10 crore
  • 12% - Taxable income above ₹ 10 crore
  • 10% - If Company opting for taxability u/s 115BAA or Section 115BAB
What is Marginal Relief?
Marginal Relief is a relief from surcharge, provided in cases where the surcharge payable exceeds the additional income that makes the person liable for surcharge. The amount payable as surcharge shall not exceed the amount of income earned exceeding ₹ 1 crore and ₹ 10 crore respectively
What is Health and Education cess?
Health and Education cess @ 4% shall also be paid on the amount of income tax plus surcharge (if any).

 

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Note: 

  • A Company shall be liable to pay Minimum Alternate Tax (MAT) at 15% of book profit (plus surcharge and Health and Education cess as applicable) where the normal tax liability of the Company is less than 15% of book profit. 
  • A Company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange, MAT shall be payable at 9% (plus cess and surcharge as applicable)
  • A Company opting for special rate taxation under Section 115BAA and 115BAB are exempt from paying MAT.
  • The Companies opting for special rate of taxation u/s 115BAA or 115BAB will not be allowed certain deductions like section 80IA, 80IAB, 80IAC, 80IB and so on, except deduction u/s 80JJAA and 80M.

 

Investments/ Payments / Incomes on which I can get Tax Benefit 

Tax deductions specified under Chapter VI-A of the Income Tax Act

80G

Deduction towards donations made to certain funds, charitable institutions, etc.

Donation are eligible for deduction under the below categories:

Subject to qualifying limit
group
100% deduction
50% deduction
Without any limit
group
100% deduction
50% deduction

 

 

 

 

 

Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000/-.

 

80GGA

Deduction towards donations made for Scientific Research or Rural Development.

Donation are eligible for deduction under the below categories:

Research Association or University, College or other Institution for
  • Scientific Research
  • Social Science or Statistical Research
Association or Institution for 
  • Rural Development
  • Conservation of Natural Resources or for afforestation
PSU or Local Authority or an association or institution approved by the National Committee for carrying out any eligible project 
Funds notified by Central Government for:
  • Afforestation
  • Rural Development
National Urban Poverty Eradication Fund as set up and notified by Central Government

 

Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000 or if gross total income includes income from Profit / Gains from Business / Profession.

 

80GGB
Sum contributed to Political Party or Electoral Trust is allowed as deduction (subject to certain conditions)
group Deduction of total amount paid through any mode other than cash

 

80IA

Undertaking engaged in Developing, Maintaining and Operating any Infrastructure Facility (only Indian Company), Industrial Parks (any Undertaking), any Power Undertaking, Reconstruction or Revival of Power Generating Plants (Indian Company) shall be entitled to claim deduction

(subject to certain conditions)

group
100% of profit for 10 consecutive AY falling within a period of 15 / 20 AY beginning with the AY in which Assessee develops / begins operating and maintaining infrastructure facility
(No deduction shall be allowed if development, operation, etc. started after specified dates for specified business)

 

80IAB

Deduction in respect of Profits and Gains by an Undertaking or an Enterprise engaged in development of Special Economic Zone

(subject to certain conditions)

group
100% of profit for 10 consecutive AY out of 15 AY beginning from the year in which a Special Economic Zone has been notified by the Central Government
No deduction to an Assessee, where the development of Special Economic Zone begins on or after 1st April 2017

 

80IAC
Profit and Gains derived by an Eligible Start-up from Specified Business
group 100% of profit for 3 consecutive assessment years out of 10 years beginning from the year in which the eligible Start-up is incorporated

 

80IB

Deduction towards Profits and Gains from Specified Business

The deduction under this section is available to an Assessee whose gross total income includes any Profits and Gains derived from the business of:

Industrial Undertaking including an SSI in J&K
Commercial Production and Refining of Mineral Oil
Processing, Preservation and Packaging of Fruits or Vegetables, Meat and Meat Products or Poultry or Marine or Dairy Products; Integrated Business of Handling, Storage and Transportation of Food Grains
(Subject to certain conditions) 

 

100% / 25% of profit for 5 / 10 / 7 years as per conditions specified for different types of undertakings

 

80IBA
Profit and Gains derived from Developing and Building Housing Projects
group 100% of profit subject to various conditions specified

 

80IC

Deduction in respect of certain Undertakings in Himachal Pradesh, Sikkim, Uttaranchal and North-Eastern states

(subject to certain conditions)

group 100% of profits for first 5 AY and 25% (30% for a company) for next 5 AY to manufacture or produce specified article or thing

 

80IE

Deduction to certain Undertakings set up in North-Eastern states

(subject to certain conditions)

group 100% of profits for 10 AY subject to various conditions specified 

 

80JJA

Deduction in respect of Profits and Gains from Business of Collecting and Processing of Biodegradable Waste

(subject to certain conditions)

group 100% of profits for 5 AY where the gross total income of an Assessee includes any Profits and Gains derived from the Business of Collecting and Processing or treating of Biodegradable Waste

 

80JJAA

Deduction in respect of Employment of New Workers / Employees, applicable to Assessee to whom Section 44AB applies

(subject to certain conditions)

group 30% of additional employee cost for 3 AY, subject to certain conditions

 

80LA

Deduction for Income of Offshore Banking Units and International Financial Services Centre

(subject to certain conditions)

group 100% / 50% of specified income for 5 / 10 AY, as per specified conditions

 

80M
Inter-corporate dividend shall be allowed to be reduced from Total Income of Company receiving the dividend if same is further distributed to shareholders
group Where the Gross Total Income of Domestic Company in any previous year includes any income by way of dividends from any other Domestic Company or Foreign Company ,there shall, in accordance with and subject to provisions of this section, be allowed in computing the Total Income of such Domestic Company, a deduction of an amount equal to so much of the amount of income by way of dividend received from such other Company as does not exceed the amount of dividend distributed to shareholder one month prior to the due date of filing of return

 

80PA
Producer company engaged in an Eligible Business of Marketing, Purchase or Processing of Agricultural Produce of its Members
group 100% of profits for a period of 5 years from the AY 2019-20 subject to the condition that the total turnover of Company shall be less than ₹ 100 crores during the FY

For More Information

Email : [email protected]

Phone : 01141623205, 9990061912

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