15 December 2009
As per the Income Tax Act,Domestic companies are liable for surcharge of 10% if the NET INCOME exceeds Rs. 1 crore. Can anybody please tell me what is the definition for NET INCOME.
Is it the profit before tax as per P&L a/c or the taxable income as per IT computation or anything else.
15 December 2009
Net Income Means Gross Income - Expenditure = Net Income. As per Surcharge of Company I think if net income exceeds Rs 1.0 Crore: 1) Surcharge of 10% before EC(2%)+SHEC(1%) included above 2) Marginal relief of tax exceeding income
15 December 2009
Net Income means the income offered for taxation, ie Gross Taxable Income after addinmg income under all heads of income and deductions available to the company.
It is the income on which tax is computed and not receipts.
What will be the net income in a situation where there is agricultural income. Agricultural income is exempt, but included for rate purpose while calculating tax.
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