Rate of Tax for TDS / Advance Tax -  Companies

The rates of income-tax in the case of companies have been specified in Paragraph E of Part III of the First Schedule to the Bill. In case of domestic company, the rate of income-tax shall be twenty five per cent. of the total income, if its total turnover or gross receipts in the previous year 2017-18 does not exceed four hundred crore rupees, and in all other cases the rate of Incometax shall be thirty per cent. of the total income. In the case of company other than domestic company, the rates of tax are the same as those specified for the financial year 2018-19. Surcharge at the rate of seven per cent. shall continue to be levied in case of a domestic company, if the total income of the domestic company exceeds one crore rupees but does not exceed ten crore rupees. Surcharge at the rate of twelve per cent. shall continue to be levied if the total income of the domestic company exceeds ten crore rupees. In case of companies other than domestic companies, the existing surcharge of two per cent. shall continue to be levied, if the total income exceeds one crore rupees but does not exceed ten crore rupees. Surcharge at the rate of five per cent. shall continue to be levied, if the total income of the company other than domestic company exceeds ten crore rupees. However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees but not exceeding ten crore rupees, shall not exceed the total amount payable as income-tax on a total income of one crore rupees, by more than the amount of income that exceeds one crore rupees. Further total amount payable as income-tax and surcharge on total income exceeding ten crore rupees, shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees, by more than the amount of income that exceeds ten crore rupees.

In other cases [including cases where provision of sub-section (2A) of section 92CE, sections 115-O, 115QA, 115R, 115TA or 115TD are applicable], the surcharge shall be levied at the rate of twelve per cent..

 For financial year 2019-20, additional surcharge called the “Health and Education Cess on income-tax” shall be levied at the rate of four per cent. on the amount of tax computed, inclusive of surcharge (wherever applicable), in all cases. No marginal relief shall be available in respect of such cess.

[Clause 2 & First Schedule]

 

 

 

Corporate tax rate revised, varying by domestic status; surcharge and health and education cess apply. Income tax rates for companies distinguish domestic and other companies, with domestic companies below a specified turnover threshold subject to a lower rate and others taxed at a higher rate. Surcharge is levied in graded bands for domestic and non domestic companies, with marginal relief caps limiting excess tax attributable to incomes above prescribed thresholds. Certain specified company cases attract a prescribed surcharge rate. A Health and Education Cess is levied on tax including surcharge, and marginal relief is not available in respect of that cess.