Computation of income tax

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shoeb parwaiz (Querist)
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30 January 2011
Dear All,

I wanna know that how to income tax is calculated on any ltd. company's income. I would be grateful if you explain me with any example along with section wise detail.

Regards

B. Gopalkrishna Baliga

B. Gopalkrishna Baliga (Expert)
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30 January 2011 income tax rate for company assessee is 30% flat. there is no slab system like individuals. if the income is above Rs.1crores, surcharge @ 10% is payable. (I am assuming that it is an Indian company)

the tax is to be paid on net taxable income of the company. to arrive at net taxable income of company, the assessee must follow and apply business income related provisions of Income Tax act i.e. from S.30 to S.44 as may be applicable.

again, the income is to be adjusted according to S.115JB i.e. provisions relating to Minimum Alternate Tax.
after this you arrive at net taxable income and on that 30% tax + 10% surcharge (if applicable) + 2% education cess + 1% higher education cess is to calculated. The credit of TDS if available and credit of advance tax is to be reduced from the tax payable and the balance shall be payable to the government

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