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 |
Corporate Tax - Introduction
|
| 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%.
A
company has been defined as a juristic person having an
independent and separate legal entity from its shareholders.
Income of the company is computed
and assessed separately in the hands of the company. however the
income of the company which is distributed to its shareholders as
dividend is assessed in their individual hands. Such distribution of
income is not treated as an expenditure in the hands of company, the
income so distributed is an appropriation of the profits of the
company.
Residence of a company :
A company is said to be a resident in India during the relevant
previous year if:
- it is an Indian company
- if it is not an Indian company
then, the control and the management of its affairs is situated
wholly in India
A company is said to be
non-resident in India if it is not an Indian company and some part
of the control and management of its affairs is situated outside
India.
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