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Tax
Under LLP
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Tax
Under Private Companies
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1. Rate of Tax
For the Assessment
Year 2020-21 & 2021-22, LLP is taxable at 30%.
The
Rate of tax applicable to LLP is flat 30%. For income tax purpose, LLP is
treated at par with partnership firms. If the total Income of LLP has
exceeded Rs 1 Crore, amount of Income Tax shall be increased by a surcharge
at the rate of 12%. Health and Education Cess @4% on income tax shall be
chargeable
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1. Rate of Tax
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For
the Assessment Year 2020-21 & 2021-22, where its
total turnover or gross receipt during the previous year 2018-19 does not
exceed Rs. 400 crore, Rate of tax applicable will be 25%.
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In all other cases- Rate of tax
applicable, will be 30%
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The amount of income-tax shall be
increased by a surcharge at the rate of 7% of such tax, where total income
exceeds one crore rupees but not exceeding ten crore rupees and at the rate
of 12% of such tax, where total income exceeds ten crore rupees
Health
and Education Cess @4% on income tax shall be chargeable
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2. Dividend Distribution Tax
There
is no such Dividend distribution tax applicable to LLPs.
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2. Dividend
Distribution Tax
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In the budget 2020, the Dividend Distribution Tax (DDT) has been
removed and the dividend income had been made taxable in the hands of
investors.
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However,
Investors will now receive dividend after tax deducted at source (TDS) at
rate of 10 percent by the organizations distributing dividend irrespective of
the tax slab rate in which investors fall.
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Taxation on Domestic
Company
Income-tax rates
applicable in case of domestic companies for assessment year 2020-21 and
2021-22 are as follows:
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Domestic Company
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Assessment Year
2020-21
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Assessment Year
2021-22
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♦ Where its total
turnover or gross receipt during the previous year 2017-18 does not exceed
Rs. 400 crore
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25%
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NA
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♦ Where its total
turnover or gross receipt during the previous year 2018-19 does not exceed
Rs. 400 crore
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NA
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25%
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♦ Any other domestic
company
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30%
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30%
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Add:
(a) Surcharge: The
amount of income-tax shall be increased by a surcharge at the rate of 7% of
such tax, where total income exceeds one crore rupees but not exceeding ten
crore rupees and at the rate of 12% of such tax, where total income exceeds ten
crore rupees. The surcharge shall be subject to marginal relief, which shall be
as under:
(i)
Where income exceeds Rs. 1 crore but not exceeding Rs. 10 crore, the total
amount payable as income-tax and surcharge shall not exceed total amount
payable as income-tax on total income of Rs. 1 crore by more than the amount of
income that exceeds Rs. 1 crore.
(ii)
Where income exceeds Rs. 10 crore, the total amount payable as income-tax and
surcharge shall not exceed total amount payable as income-tax on total income
of Rs. 10 crore by more than the amount of income that exceeds Rs. 10 crore
(b) Health
and Education Cess : The amount of income-tax and the applicable
surcharge, shall be further increased by health and education cess calculated
at the rate of four percent of such income-tax and surcharge.
1. Special Tax rates
applicable to a domestic company
The special Income-tax
rates applicable in case of domestic companies for assessment year 2020-21 and
2021-22 are as follows:
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Domestic Company
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Assessment Year
2020-21
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Assessment Year
2021-22
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♦ Where it opted for
Section 115BA
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25%
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25%
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♦ Where it opted for
Section 115BAA
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22%
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22%
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♦ Where it opted for
Section 115BAB
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15%
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15%
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Surcharge : The rate of surcharge in case of a
company opting for taxability under Section 115BAA or Section 115BAB shall be
flat 10% irrespective of amount of total income.
Health and Education
Cess: The amount of
income-tax and the applicable surcharge, shall be further increased by health
and education cess calculated at the rate of four percent of such income-tax
and surcharge.
MAT : The domestic company who has opted for
special taxation regime under section 115BAA & 115BAB is exempted from
provision of MAT. However, no exemption is available in case where section
115BA has been opted.
In that case, the
provisions of Minimum Alternate Tax (MAT) applies, tax payable cannot be less
than 15% (+HEC) of "Book profit" computed as per section 115JB.
However, MAT is levied at the rate of 9% (plus surcharge and cess as
applicable) in case of a company, being a unit of an International Financial
Services Centre and deriving its income solely in convertible foreign exchange.
For provisions relating to MAT refer tutorial on "MAT/AMT" in
tutorial section.
Taxation on LLP
For
the Assessment Year 2020-21 & 2021-22, a partnership firm (including LLP)
is taxable at 30%.
Add:
(a) Surcharge: The
amount of income-tax shall be increased by a surcharge at the rate of 12% of
such tax, where total income exceeds one crore rupees. However, the surcharge
shall be subject to marginal relief (where income exceeds one crore rupees, the
total amount payable as income-tax and surcharge shall not exceed total amount
payable as income-tax on total income of one crore rupees by more than the
amount of income that exceeds one crore rupees).
(b) Health and Education Cess : The
amount of income-tax and the applicable surcharge, shall be further increased
by health and education cess calculated at the rate of four percent of such
income-tax and surcharge
Reference: https://www.incometaxindiaefiling.gov.in/home
