| 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% |
