Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

Taxation In Companies

Taxation & Assessment of Companies

Taxation In Companies – Company Taxation

1.   [Section 6(3)]- Definitions & Types of Companies with Residential Status (1).  Definition and Types of Companies 1. Company: As per section 2(17), company means: (i)            Any Indian company, or (ii)           Anybody corporate incorporated by or under the laws of a country outside India, or (iii)          Any institution, association or body which …

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[Section 6(3)]- Definitions & Types of Companies with Residential Status

1.   Definition and Types of Companies (1). Company: As per section 2(17), company means: (i)            Any Indian company, or (ii)           Any body corporate incorporated by or under the laws of a country outside India, or (iii)          Any institution, association or body which was assessed as a company for any assessment year under …

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Special Provisions applicable to Closely-held Company (in which Public are Not Substantially Interested)

The following are the special provisions under the Income-tax Act which are applicable to a company in which public are not substantially interested Le. a closely held company: (A) [Section 79]- Carry Forward and Set Off of Losses in case of Certain Companies The Finance (No. 2) Act, 2019 has substituted the existing section 79 …

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Rate of Income Tax in case of a Domestic Company

(A) For Assessment Year 2020-21 and onwards, all Domestic Companies can pay Tax under any of the following two options: Option -1 (i)                  Normal Rate of Tax as per newly inserted section 115BAA, 22% — Effective Rate of Tax including Surcharge @ 10% and H&EC @ 4% = 25.168% (ii)                MAT provisions not applicable Option …

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[Section 115JB(1)]- Provisions of MAT (Minimum Alternate Tax) for payment of Tax by Certain Companies

1.   Tax Payable for any Assessment Year Cannot be Less than 18.5% of Book Profit: Where in the case of a company, the income-lax payable on the total income as computed under the Income-tax Act, in respect of previous year relevant to the assessment year 2012-13 or thereafter is less than 18.5% of its book …

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[Section 115JB (2)]- Statement of Profit and Loss of the Company to be prepared as per provisions of the Companies Act. with Computation of Book Profit

Every assessee,— (a)           being a company shall, for the purposes of this section, prepare its statement of profit and loss for the relevant previous year in accordance with the provisions of Schedule III to the Companies Act, 2013; or (b)          being a company, to which the second proviso to Section 129(1) of the …

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Special Provisions relating to Tax on Distributed Profits of Domestic Companies

1.   [Section 115-O (1)]- Tax on Distributed Profits of Domestic Companies Shall not be applicable w.e.f. 1.4.2020 as Dividend shall now be Taxable in the hands of the recipient. 2.   [Section 115-O (1A)]- Dividend received from Subsidiary Company to be reduced from the above Dividend to be Distributed For the purpose of computation of tax …

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[Sections 115R to 115T]- Special Provisions relating to Tax on Distributed Income to Unit Holders

1.  [Section 115R (2)]- Tax on Income Distributed to Unit Holders by the Specified Company or a Mutual Fund : Any amount of income distributed by: (I) a specified company, or (ii) a Mutual Fund to its unit holders shall be chargeable to tax and such specified company or Mutual Fund shall be liable to …

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