DOMESTIC COMPANY under INCOME TAX ACT

 

DOMESTIC COMPANY

Meaning​

As per Section 2(22A)​, "domestic company" means an Indian company, or any other company which, in respect of its income liable to tax under this Act, has made the prescribed arrangements for the declaration and payment, within India, of the dividends (including dividends on preference shares) payable out of such income

Tax Rates

A. Income-tax

Income-tax rates applicable in case of domestic companies for Assessment Year 2022-23 are as follows:

    Where its total turnover or gross receipt during the previous year 2019-20 does not exceed Rs. 400 crore	25%
Where it opted for Section 115BA​	25%
Where it opted for Section 115BAA	22%
Where it opted for Section 115BAB​	15%
Any other domestic company	30%

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The amount of income-tax computed shall, be increased by a surcharge,-

 

(a) in case company having a total income exceeding one crore rupees, but not exceeding ten crore rupees, at the rate of seven per cent of such income-tax; and

(b) in case company having a total income exceeding ten crore rupees, at the rate of twelve per cent of such income-tax;

However, the rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be 10% irrespective of amount of total income.

Provided that in the case of every company having a total income exceeding one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income 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 :

Provided further that in the case of every company having a total income exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income 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.

Health and Education Cess

The amount of income-tax as increased by the applicable surcharge, shall be further increased by "Health and Education Cess on income-tax", calculated at the rate of four per cent of such income-tax and surcharge

B. Minimum Alternate Tax

A company shall be liable to pay MAT @ 15% of book profit (plus surchage and health and Education Cess as applicable) where the normal tax liability of the company is less than 15% of book profit.

Are there any special provisions in case of carry forward and set off of loss in case of a company in which public are not substantially interested?

How to determine the residential status of a company?​​

Can branches of companies/banks have separate TANs?

In case of change in the constitution of business, can the loss be carried forward by the reconstituted entity?

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