Kamal Verma (Financial advisor) 21 September 2019
Let me help in calculating taxablity under partnership and in company
|PARTICULARS||COMPARISION OF TAXABLITY|
|NP||100 LACS||100 LACS|
How much income tax and dividend distribution tax to be paid by both the entity.
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Suresh Thiyagarajan (Student) 21 September 2019
1. Partnership firm does not have DDT and tax rate for the firm would be 30% plus surcharge (if income crosses Rs. 1 crore) plus Edu cess 4%.
2. In your case since Net profit did not exceed Rs. 1 crore so it will be 30% plus 4%.
3. In the case of the company for the FY 2019-20, the effective tax rate was revised recently @ 25.17 %.
4. DDT for companies u/s 115-O will be 20.56% on the dividend declared.
Please correct me if the above solution has an alternative view.
Kamal Verma (Financial advisor) 23 September 2019
|Originally posted by : Kapadia Pravin|
|Partnership - No DDTPartnership - tax rate 30% + 12% SC if taxable income > 1 crore + Cess 4%|
Let me know which option is more beneficial in point of view of saving tax.