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.

1. No exemption limit : A company does not enjoy any exemption limit
   
   
2. 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%