TAX RATES

 

ASSESSMENT YEAR 2014-15

·              Companies - For the assessment years 2013-14 and 2014-15 the following rates of income-tax are applicable:

 

Company

Rate of income-tax (per cent)

In the case of a domestic company

30

In the case of a foreign company

 

·          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

·          other income

40

 

Surcharge - Surcharge is applicable at the rates given below—

 

 

Assessment year 2013-14

Assessment year 2014-15

If net income does not exceed Rs. 1 crore

If net income exceeds Rs. 1 crore

If net income does not exceed Rs. 1 crore

If net income is in the range of Rs. 1 croreRs. 10 crore

If net income exceeds Rs. 10 Crore

Domestic company

Nil

5%*

Nil

5%*

10%**

Foreign company

Nil

2%*

Nil

2%*

5%**

 

*Marginal relief - In the case of a company having a net income of exceeding Rs. 1 crore, the 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.

**Marginal relief - In the case of a company having a net income of exceeding Rs. 10 crore (for the assessment year 2014-15), the amount payable as income-tax and surcharge shall not exceed the total amount payable as income-tax and surcharge on total income of Rs. 10 crore by more than the amount of income that exceeds Rs. 10 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—

·       Assessment year 2014-15 –

 

 

If book profit does not exceed Rs.1 crore

If book profit is in the range of Rs. 1 croreRs. 10 crore

If book profit exceeds Rs. 10 crore

IT

SC

EC+SHEC

Total

IT

SC

EC+SHEC

Total

IT

SC

EC+SHEC

Total

Domestic company

18.5

-

0.555

19.055

18.5

0.925

0.58275

20.00775

18.5

1.85

0.6105

20.9605

Foreign company

18.5

-

0.555

19.055

18.5

0.37

0.5661

19.4361

18.5

0.925

0.58275

20.00775

Note - If book profit of a company for the assessment year 2014-15 exceeds Rs. 1 crore but does not exceed Rs. 10 crore, the minimum alternate tax cannot exceed the following : (Rs. 18.5 lakh + book profit – Rs. 1 crore) + EC + SHEC. If, however, book profit for the assessment year 2014-15 exceeds Rs. 10 crore, the minimum alternate tax cannot exceed the following –

   a.  in the case of domestic company, (Rs. 194.25 lakh + book profit – Rs. 10 crore) + EC + SHEC; or

   b.  in the case of a foreign company, (Rs. 188.7 lakh + book profit – Rs. 10 crore) + EC + SHEC.