TAX PAYMENT

What is the tax rate?

a) Income-tax:

A firm is liable to pay tax at the flat rate of 30% on its total income.

Surcharge: The amount of income-tax (as computed above) shall be further increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).

Health and education cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess and secondary and higher education cess calculated at the rate of four per cent respectively of such income-tax and surcharge.

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b) Alternate Minimum Tax:

Tax payable by a firm cannot be less than 18.5 per cent (increased by Surcharge and HEC) of "adjusted total income" as per section 115JC.

How to pay tax?

Taxes can be paid in any of following mode:

1) Physical Mode - Payment by furnishing the hard copy of the challan at the designated bank

a. Download Challan ITNS 280

b. Tax Payment-Locate Bank Branch

2) e-payment mode i.e. making payment by using the electronic mode

See tutorial

Click to e-Pay the tax

Who is supposed to pay Advance Tax?

How is advance tax calculated and paid?

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Note:

E-payment is mandatory for a firm who is liable to get its accounts audited under section 44AB of the Income-tax Act, 1961.