Understanding income tax slabs and deductions helps businesses minimize tax liability legally. Learn the tax rates, deductions, and filing process for different business structures.
Tax Rates for Companies
Domestic companies with turnover up to Rs. 400 crores pay 25% tax. Companies exceeding this turnover pay 30%. Additional cess of 4% applies on tax amount. Super rich surcharge applies for income above Rs. 1 crore.
New manufacturing companies incorporated after October 2019 pay 15% tax for 10 years. This is subject to certain conditions being met. Research companies enjoy preferential rates.
Tax for Partnerships and LLPs
Partnership firms and LLPs are taxed at 30% flat rate. No surcharge on partnership income. Additional cess applies. Partners receive salary or interest which is tax deductible for the firm.
Deductions Available
Section 80C allows deduction up to Rs. 1.5 lakhs for investments in PPF, NSC, ELSS, life insurance, home loan principal, and children's tuition fees. Section 80D covers health insurance premiums up to Rs. 25,000 for self and family.
Section 80G covers donations to approved charities. Section 80TTA provides Rs. 10,000 savings interest deduction. Business expenses under Section 37 are fully deductible if they are wholly and exclusively for business.
Advance Tax
Advance tax must be paid if tax liability exceeds Rs. 10,000 in a year. Due dates are 15th June (15%), 15th September (45%), 15th December (75%), and 15th March (100%). Interest at 1% per month applies for short payment.
Tax Filing
File ITR-6 for companies, ITR-5 for partnerships and LLPs. Due date is October 31st for companies requiring audit. Companies with transfer pricing provisions have November 30th deadline.
