CORPORATE TAX
Corporate tax is the tax levied on the income earned by companies. The rates of tax vary at present from 10% to 50% depending on the type of income as follows:In Schedule Sl., the codes for the sections which prescribed special rates of tax for the income mentioned therein are as under:-
|
Sl.No. |
Nature of income |
Section |
Rate of tax |
Section Code |
|
1 |
Tax on accumulated balance of recognized provident fund |
111 |
To be computed in accordance with rule 9(1) of part A of fourth Schedule |
1 |
|
2 |
Short term capital gains |
111A |
10 |
1A |
|
3 |
Long term capital gains (with indexing |
112 |
20 |
21 |
|
4 |
Long term capital gains (without indexing |
112 |
10 |
22 |
|
5 |
Dividends, interest and income from units purchase in foreign currency |
115A(1)(a) |
20 |
5Ala |
|
6 |
Income from royalty or technical services where agreement entered between 31.3.1961 to 31.3.1976 in case of royalty and between 29.2.1964 and 31.3.1976, and agreement is approved by the Central Government |
Paragraph EII of Part I of first schedule of Finance Act |
50 |
FA |
|
7 |
Income from royalty & technical services |
115A(1)(b) if agreement is entered on or before 31.5.1997 |
30 |
5A1b1 |
|
8 |
Income from royalty & technical services |
115A(1(b) if agreement is entered on or after 31.5.1997 but before 1.6.2005 |
20 |
5A1b2 |
|
9 |
Income from royalty & technical services |
115A(1(b) if agreement is entered on or after 1.6.2005 |
10 |
5A1b3 |
|
10 |
Income received in respect of units purchase in foreign currency by a off-shore fund |
115AB(1)(a) |
10 |
5AB1a |
|
11 |
Income by way of long-term capital gains arising from the transfer of units purchase in foreign currency by a off-shore fund |
115AB(1)(b) |
10 |
5AB1b |
|
12 |
Income from bonds or GDR purchase in foreign currency or capital gains arising from their transfer in case of a non-resident |
115AC(1) |
10 |
5AC |
|
13 |
Income from GDR purchased in foreign currency or capital gains arising from their transfer in case of a resident |
115ACA(1) |
10 |
5ACA |
|
14 |
Profits and gains of life insurance business |
115B |
12.5 |
5B |
|
15 |
Winnings from lotteries, crosswards puzzles, races including horse races, card games and other games of any sort or gambling or betting of any form or nature whatsoever |
115BB |
30 |
5BB |
|
16 |
Tax on non-residents sportsmen or sports associations |
115BBA |
10 |
5BBA |
|
17 |
Tax on income from units of an open – ended equity oriented fund of the Unit Trust of India or of Mutual Funds |
115BBB |
10 |
5BBB |
|
18 |
Anonymous donations |
115BBC |
30 |
5BBC |
|
19 |
Investment income |
115E(a) |
20 |
5Ea |
|
20 |
Income by way of long term capital gains |
115E(b) |
10 |
5Eb |
For more details, please check ‘Instructions under ITR 6 and ITR 7’ under Downloads Section of income tax website.