Tax Saving Ways for Limited Company

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