Surcharge fror companies

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VINITHA RAJESH (Querist)
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15 December 2009 As per the Income Tax Act,Domestic companies are liable for surcharge of 10% if the NET INCOME exceeds Rs. 1 crore. Can anybody please tell me what is the definition for NET INCOME.

Is it the profit before tax as per P&L a/c or the taxable income as per IT computation or anything else.

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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15 December 2009 It is the total income as per IT computation on which we calculate tax.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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15 December 2009 Net Income Means Gross Income - Expenditure = Net Income.
As per Surcharge of Company I think if net income exceeds Rs 1.0 Crore: 1) Surcharge of 10% before EC(2%)+SHEC(1%) included above 2) Marginal relief of tax exceeding income

CA Apurav Agawal

CA Apurav Agawal (Expert)
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15 December 2009 Net Income means the income offered for taxation, ie Gross Taxable Income after addinmg income under all heads of income and deductions available to the company.

It is the income on which tax is computed and not receipts.

VINITHA RAJESH

VINITHA RAJESH (Querist)
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17 December 2009 Thankyou very much

What will be the net income in a situation where there is agricultural income. Agricultural income is exempt, but included for rate purpose while calculating tax.