Menu
Income tax for various forms of business
Lets say that you have an option to start any of the following :-
1. Proprietorship firm
2. LLP
3. Private Ltd Company
4. Partnership Firm
5. Single Person Company
Which one is suitable considering Tax liability. ( Income Tax)
Lets us assume that each one of them makes a profit of 30 Lakh in a year, What would be Income tax amount payable for each one?
Replies (1)
For a Start up it would be better to go with either Proprietorship or Partnership considering the Tax impact alone.
For a company the tax liability would be at 30% on profits. Additionallly Dividend Distribution Tax around 20% for distributing Dividend will be levied.
If the Dividend income crosses Rs 10,00,000 the same will be taxable in the hands of individual too.
The Tax rate for Partnership would be 30% . But 2,70,000 for First 3,00,000 earned + 60% of any profit in Excess of 3,00,000 can be transferred to Partners as Remeneration
Propeirtory Concerns will be taxed at Slab Rates :
Nil for First 2,50,000
10% from 2,50,000 To 5,00,000
20% from 5,00,000 To 10,00,000
30% for income above 10,00,000
Recent Topic
- Startup exit in Sept 2025: Can I still save LTCG t
- Need advice
- GST registration
- Tax Refund timeline
- Is Form 10E applicable for Notice Pay received in
- INCOME RECEIVED FROM COMPANY FOR ELECTRIC POLLS
- ITR Processing By CPC Now Super Fast - Much apprec
- Abroad Jobs
- Professional Income in 44AD
- Presumptive taxation
Related Topics
CAclubindia
