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Corporate tax rate for new domestic companies

sandeep yadav (Article Student) (45 Points)

23 February 2017

Clarification required regarding the corporate tax rate for newly established domestic companies(not a manufacturing company) for Ay 2018-19. As far as i know clarification is still awaited from finance ministry. Do let me know you views on this.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178334 Points)
Replied 26 February 2017

PROPOSED as follows: (AY 2018-19)

Domestic Company - Turnover upto Rs. 50 crores

Income Tax : 25% of taxable income.

Surcharge : The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge

At the rate of 7% of such income tax, provided that the taxable income exceeds Rs. 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 1 crore by more than the amount of increase in taxable income.
At the rate of 12% of such income tax, provided that the taxable income exceeds Rs. 10 crores. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 10 crores by more than the amount of increase in taxable income.

Education Cess : 3% of the total of Income Tax and Surcharge.

Domestic Company - Turnover exceeding Rs. 50 crores

Income Tax : 30% of taxable income.

Surcharge : The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge

At the rate of 7% of such income tax, provided that the taxable income exceeds Rs. 1 crore.
At the rate of 12% of such income tax, provided that the taxable income exceeds Rs. 10 crores.

Education Cess : 3% of the total of Income Tax and Surcharge.

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sandeep yadav (Article Student) (45 Points)
Replied 28 February 2017

Thanks Sir, but my question is corporate tax for domestic companies which is established in Fy2017-18 (not a manufacturing company). You have given the answer for domestic companies which is already established and whose turnover for the year 2015-16 should be less than 50 Cr to get tax advantage.