Domestic Company Tax rate Software Industry

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Accountant for multiple small entities
171 Points Joined September 2022
Hi Sir/Madam


A company business is in to Sofware services zero turnover in FY 2020-21

Can I take 25% tax rate under Domestic Company tax rate Categorised below 400 crores Turnover

Please advise
Thanks
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On 29 October 2024 at 12:06 Report
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Master in Accounts & high court Advocate
9456 Points Joined December 2011

According to the Income-tax Act, 1961, a domestic company with a turnover of less than ₹400 crores is eligible for a reduced tax rate of 25%.

However, there are some conditions to be met:

 1. The company should be a domestic company, i.e., it should be incorporated in India.

 2. The company should have a turnover of less than ₹400 crores in the previous financial year (FY 2020-21 in your case).

 3. The company should not be engaged in any specified services like life insurance, banking, or finance.

 Since your company is in software services and had zero turnover in FY 2020-21, you may be eligible for the 25% tax rate under the domestic company tax rate category.

Additionally, you may also need to consider other factors like: -

Minimum Alternate Tax (MAT) - Goods and Services Tax (GST) - Other tax liabilities.

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On 29 October 2024 at 13:02
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Accountant for multiple small entities
171 Points Joined September 2022
Thanks a lot sir
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On 29 October 2024 at 14:04


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