Current Corporate tax

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Rajesh274 (Querist)
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18 June 2010 what is the rate of current corporate tax?
what is the rate of Tds at present?
what exempt exempt exempt (EEE) tax regime?

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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18 June 2010

I understand these words are very untidy to you but comprise so much significance in the taxation world. So let’s try to understand these expressions.
• “E” means Exempt
• “T” means Taxable.
• “T” means Taxable.
Words laid down above appears to be higgledy-piggledy for non-professionals, but for all taxpayers it is must to understand these words before investing in saving instruments like PPF, NSC, FD, Post Saving account.
Almost all instruments fall under the following equations.
• EEE (Exempt – Exempt – Exempt)
• EET (Exempt – Exempt – Taxable)
• ETE (Exempt – Taxable – Exempt)
• ETT (Exempt – Taxable – Taxable)
The above equations are passed in three stages when someone invest in investment instruments.
Stages for tax benefit and taxation
1) First Stage - Investment Stage
• The moment - when somebody practically makes an investment.
Almost all Investments are exempt from tax i.e. First E for EEE, EET.
2) Second Stage – Earnings Stage
• The moment – When you get benefit (interest, accrued interest etc.) on your investment i.e First Stage
But the second stage may be taxable or exempt i.e. Second E may be T or E
For example :
• Interest on National Savings Certificate (NSC) is taxable
• Interest on Provident Fund (PF) or Voluntary Provident Fund (VPF) is not taxable.
3) Third Stage - Withdrawal Stage
• The moment – when you withdraw the whole or part of your investment with benefit i.e. interest or accrued interest.
Now same as second stage may be taxable or not i.e third stage may be E (exempt) or T (Taxable)
For example
PPF is fall under EEE (Exempt – Exempt – Exempt).
See all tax saving Schemes
Now let’s understand with saving instruments and tax saving schemes in which equation they fall.
Public Provident Fund (PPF)
• Investment: Tax-deductible
• Accumulation: Tax-free
• Withdrawal: Tax-free
Stages : Exempt – Exempt – Exempt or EEE regime is followed for PPF.
National Savings Certificate (NSC)
• Investment: Tax-deductible
• Accumulation: Taxable
• Withdrawal: Tax-free
Stages : Exempt – Taxed – Exempt or ETE regime is followed for NSC.
Provident Fund (PF)
• Investment: Tax-deductible
• Accumulation: Tax-free
• Withdrawal: Tax-free
Stages : Exempt – Exempt – Exempt or EEE regime is followed for PF and VPF.
Tax Saving Fixed Deposits
• Investment: Tax-deductible
• Accumulation: Taxable
• Withdrawal: Tax-free
Stages : Exempt – Taxed – Exempt or ETE regime is followed for these FDs.
I trust you will find the information useful

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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18 June 2010 CURRENT CORPORATE TAX
30%
SURCHARE 7.5% IF PROFIT IS EXCEED RS.1 CRORE
ED CESS 3% OF TAX PLUS SURCHARGE

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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18 June 2010 Interest on Securities
(1)InterestonDebenturesorSecurities (Listed)
2500*
2500*
10
10
10
10
(2)Intereston8%Savings(Taxable) Bonds, 2003
10000
10000
10
10
10
10
(3)AnyOtherInterestonSecurities (Unlisted)
0
0
10
10
10
10
194
Dividendotherthandividendcovered by Section 115-O
2500*
2500*
10
10
10
10
InterestotherthanInterestonSecurities (other than below)
5000
5000
10
10
10
10
Where the payer is
(1) Banking Company
10000
10000
10
10
10
10
(2) Co-operative Society engaged
10000
10000
10
10
10
10
(3)PostOffice(depositschemeframed by Central Government)
10000
10000
10
10
10
10
194B
Winning from Lotteries
5000
10000
30
30
30
30
194BB
Winnings from Horse Races
2500
5000
30
30
30
30
194C
Payments to Contractors
(1)IncaseofContract/Sub-Contract/ Advertising
20000 (Note 1)
30000
1
2
2
2
NIL
NIL
NIL
( Note 2)
(Note 2)
(Note 2)
194D
Insurance Commission
5000
20000
10
10
10
10
194E
Non-Residentsportsman/sportsassociation
0
0
10
10
10
NA
194EE
DepositsunderNSStoResident/Non-Resident
2500
2500
20
20
20
NA
194F
RepurchaseofUnitsofMutualFund/UTIfromResident/Non-Resident
0
0
20
20
20
NA
194G
CommissiononSaleoflotterytickets to Resident / Non- Resident
1000
1000
10
10
10
10
194H
CommissionorBrokeragetoResident
2500
5000
10
10
10
10
194I
Rent to Residents
(a)RentforMachinery/plant/equipment
120000
180000
2
2
2
2
(b) Rent for other than in (a)
120000
180000
10
10
10
10
Firm
Company
192
Salary
As per slab
Asperslab
N.A.
N.A.
Normal Rate (incl. cess)
194A
193
Section
Nature of Payment
TDS RATE CHART FOR THE FY 2010-11
Threshold limit upto 30th June,2010
Thresholdlimit w.e.f.1st July,2010
Individual/HUF/ BOI/AOP
Co-operativeSociety /Loca lAuthority
N.A.
* in case of resident only
(2)Contractor/Sub-ContractorinTransport Business
20000(Note 1)
30000
NIL(Note 2)
194J
Fees for professional / technical
services to residents
20000 30000 10 10 10 10
194LA
Compensation to Resident on
acquisition of immovable property
100000 100000 10 10 10 10
195
Payment of other sums to a nonresident
0 0
196B
Income from units (including long
term Capital Gain on transfer of
such units) to an offshore fund
0 0 10 10 10 10
196C Income from foreign currency
bonds or GDR of Indian Company 0 0 10 10 10 10
196D
Income of FII from securities not
being dividend, long term and
short term capital gain
0 0 20 20 20 20
Note:-
1. This limit is for individual transaction. However, if aggregate payment to a contractor during the year exceed Rs. 50,000
(Rs. 75,000 w.e.f 1tst July, 2010), then tax will be required to be deducted, even where individual transaction is less than the
threshold of Rs. 20,000 (Rs. 30,000 w.e.f. 1st July, 2010).
2. The Nil rate will be applicable if the transporter quotes his PAN. If PAN is not quoted the rate will be 20%. (Transporter
means persons engaged in plying, hiring and leasing of Goods Carriages)
Rate specified under Part II of First Schedule of
Finance Bill, 2010 subject to provisions of DTAA