TAX RATES

 

ASSESSMENT YEAR 2012-13

Companies - For the assessment years 2011-12 and 2012-13 the following rates of income-tax are applicable:

Company

Rate of income-tax (per cent) [see also para 0.1-6]

In the case of a domestic company

30

In the case of a foreign company

 

q       royalty received from Government or an Indian concern in pursuance of an agreement made by it with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made by it after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government

50

q       other income

40

Surcharge - Surcharge is applicable at the rates given below—

 

If net income does not exceed Rs. 1 crore

If income exceeds Rs. 1 crore

 

 

Assessment year

Assessment year

 

 

2011-12

2012-13

Domestic company

Nil

7.5%*

5%*

Foreign company

Nil

2.5%*

2%*

 

*It is 2% or 2.5% or 5% or 7.5% of income-tax. Marginal relief is available which is given below—

Marginal relief - In the case of a company having a net income of exceeding Rs. 1 crore, the net amount payable as income-tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.

Education cess - It is 2 per cent of income-tax and surcharge.

Secondary and higher education cess - It is 1 per cent of income-tax and surcharge.

MINIMUM ALTERNATE TAX - The following rate of minimum alternate tax shall be applicable—

l Assessment year 2011-12

 

If book profit does not exceed Rs. 1 crore

If book profit exceeds Rs. 1 crore

 

IT

SC

EC

SHEC

Total

IT

SC

EC

SHEC

Total

Domestic company

18

-

0.36

0.18

18.54

18

1.35

0.387

0.1935

19.9305

Foreign company

18

-

0.36

0.18

18.54

18

0.45

0.369

0.1845

19.0035

 

Note - If book profit of a company for the assessment year 2011-12 exceeds Rs. 1 crore, the minimum alternate tax cannot exceed the following: (Rs. 18 lakh + book profit – Rs. 1 crore) + EC + SHEC.

l Assessment year 2012-13

 

A book profit does not exceed Rs. 1 crore

A book profit exceeds Rs. 1 crore

 

IT

SC

EC

SHEC

Total

IT

SC

EC

SHEC

Total

Domestic company

18.5

-

0.37

0.185

19.055

18.5

0.925

0.3885

0.19425

20.00775

Foreign company

18.5

-

0.37

0.185

19.055

18.5

0.37

0.3774

0.1887

19.4361

 

Note - If book profit of a company for the assessment year 2012-13 exceeds Rs. 1 crore, the minimum alternate tax cannot exceed the following : (Rs. 18.5 lakh + book profit - Rs. 1 crore) + EC + SHEC.