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Tax Saving Ways for Limited Company

MCA 1834 views 1 replies

Mohit

24 Points Joined March 2011

Hello Everyone...

Can anyone, Figure me out, what methods or ways should I use to save TAX in my newly Incorporated Public Limited Company.

My Limited Company got Incorporated in January, 2011. The Company will get an approx. Gross Income of Rs.3 lacs. before 31st March, 2011.

Can Anyone, please tell me, How to calculate the Net Taxable Income(i.e. the Net Profit) for paying the TAX in my Company. I have got Few Expences list also, like Salary, Commission, etc..

Kind replies will be Respectfully appreciated and Thankful.

Regards

Replies (1)

Ankul Maheshwari

Founder & CEO - CENSIE (Cent

81 Points Joined February 2011

Dear Mr Mohit,

to calculated your Net Taxable income,few step are there:

Firts: define your Tax rate (Including surchargre ~ 32.22% arround), MAT rate with surcharge (~ 19.50%)including surchagre.

Second : To calculate your Taxable income first calculate your EBITDA (revenue - All operating expenses, do not include interest on loan , Tax dep and amortisation),

will come out EBT (Earing before Tax)

adjust (reduce interest on long term and short loan(add income from interst), Depreciation as per IT act (Not as per Company act 1956) : then calculate income tax as per effective rate of Income Tax as per IT act. adjust Tax holiday if any

Trird : Calcute another Tax by considering Depreciation as per Act 1956, and use MAT tax rate for that.

Forth: Effective Tax would be MAX( TAX 1 : Tax 2) - adjust MAT credit

and Than deduct TAX from EBT will give you PAT (Profit After Tax.)

hope this will help you a bit

Best:

Ankul