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Income tax

shashikant (Employed ) (170 Points)

01 May 2013

Hi...

Please tell me the basic concepts of income tax for Firm and Company.

If any notes please provide us.

Thanks

Shashikant

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2 Replies

Sonam Bidasaria (CA) (770 Points)
Replied 13 May 2013

Though you asked your question in one line, but it is not easy to give the answer.

If i will say company is liable to pay tax @ 30% on its taxable income calculated in accordance with normal provisions of the Income Tax or 18.50% on its book profit, whichever is higher.......then i dont think so it will serve your purpose. Your next quetion may be what is normal provisions/ what is book profit?

I am giving you a gist of few sections, which u need to study to understand the tax computation of partnership Firm and Company

Sec 28 - List of Income Covered under the head PGBP

Sec 32 - Depreciation

Sec 36 - Expenses allowable from PGBP Income

Sec 37(1) - General allowance of certain specific

Sec 43B - Certain expense allowable only on cash basis

Sec 115JB - Minimum Alternate Tax

Sec 40A(2), 40A(3)

Sec 40(b) - partner's salary

and many many many more other sections which are EQUALLY IMPORTANT and there is nothing like basic concept....