Corporate Income Tax Computation

Dear Sir,

I am not sure what procedure you want in computation. But Tax rate will be as follows(If u meant something else then pls clarify)

Income from main line of business (other then shares/MFs) - Taxable  @ 30%

Income from Short Term Gain - Equity MF - Taxable @ 15%

Income from Short Term Gain - Debt MF - Taxable @ 30%

Yes, MF Transactions can be treated as Business if Company is a Trader & not an Investor. Further Business shall not be treated as Speculative since Explanation to Sec 73 applies only to Shares & not in case of Units of MF.

If Mutual Fund income is treated as Business Income will the Tax Computation change ? At what rate ?

If main business is consultancy & short term investment in MF is side business, will it be considered as trading for tax purposes ? Is additional permission is required from RBI or SEBI to do trading ?

Dear Sir,

No separate permission from SEBI/RBI is required to do trading in MFs.

Second whether it will be treated as Business or Capital Gain, answer to this lies with u I mean assesee the way he wants to treat..

If it is treated as Side Business and not as Investment then entire Income of Pvt. Co. will be taxable @ 30%...

Consider the following case :

Income from Main Line = 10,000

Income from Equity MF = 20,000

Income from Debt MF = 2,000

If I treat all of the above as business income then,

Tax = (32000*0.3)

Is this correct ?