Kamal Verma (Financial advisor) (578 Points)
21 September 2019Dear experts,
Let me help in calculating taxablity under partnership and in company
suppose:
| PARTICULARS | COMPARISION OF TAXABLITY | |
| PARTNER SHIP | COMPANY | |
| NP | 100 LACS | 100 LACS |
How much income tax and dividend distribution tax to be paid by both the entity.
Kapadia Pravin
(17249 Points)
Replied 21 September 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 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)
(578 Points)
Replied 21 September 2019
Which one is more beneficial in point of view of saving of tax?
Kamal Verma
(Financial advisor)
(578 Points)
Replied 22 September 2019
Kamal Verma
(Financial advisor)
(578 Points)
Replied 23 September 2019
| Originally posted by : Kapadia Pravin | ||
 |
Partnership - No DDTPartnership - tax rate 30% + 12% SC if taxable income > 1 crore + Cess 4% |  |
Dear Praveenji,
Let me know which option is more beneficial in point of view of saving tax.
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