Income tax

Hi...

Please tell me the  basic concepts of income tax for Firm and Company.

 

If any notes please provide us.

 

Thanks

Shashikant

 

Replies (2)

Though you asked your question in one line, but it is not easy to give the answer.

If i will say company is liable to pay tax @ 30% on its taxable income calculated in accordance with normal provisions of the Income Tax or 18.50% on its book profit, whichever is higher.......then i dont think so it will serve your purpose. Your next quetion may be what is normal provisions/ what is book profit?

I am giving you a gist of few sections, which u need to study to understand the tax computation of partnership Firm and Company

Sec 28 - List of Income Covered under the head PGBP

Sec 32  - Depreciation

Sec 36 - Expenses allowable from PGBP Income

Sec 37(1) -  General allowance of certain specific

Sec 43B - Certain expense allowable only on cash basis

Sec 115JB -  Minimum Alternate Tax

Sec 40A(2), 40A(3)

Sec 40(b) - partner's salary

and many many many more other sections which are EQUALLY IMPORTANT and there is nothing like basic concept....

 

EX: DATE OF DEDUCTION OF TDS  IS 31.12.2013 AND DATE OF ACTUAL PAYMENT IS 07.03.2014 THEN HOW THE INTT. WILL BE CALCULATED????

IT MAY BE AS FOLLOWS:

FROM 31.12.2013 TO 30.01.2014: @ 1.5% FOR 1 MONTH

AND FROM 31.01.2014 TO 02.03.2014 @ 1.5% FOR 1 MONTH

AND FROM 03.03.2014 TO 02.04.2014 @ 1.5% FOR 1 MONTH

SO INTT WILL BE FOR 3 MONTH @ 1.5%...

IF ANY QUERRY & SUGGESTION THEN PLZ WRITE

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