Strategic Tax planning
| Domestic Company Tax Calculator | ||
|---|---|---|
| Turnover FY 17-18 | Is your Turnover exceeds Rs. 400 Crore | |
| Taxable Income | To determine Surcharge | |
| Option Availed | Better tax regism | |
| Tax rate work out % | Normal Tax Paid | |
| As per 115BA | ||
| Sec. 115BAA | ||
| Sec. 115BAB | ||
| Effective Tax Rate | Lower of All four above | |
| MAT Rate | ||
| Dividend distribution tax abolised w.e.f 1.4.2020, relevant to AY 21-21 | ||
Analyze your tax liability from the point of view if there any lower tax regime is available within the law frame work in India. Tax avoidance and tax planning is accepted as principle rather Tax evasion.
Analyze your company Tax liability from the point of view of tax rate applicability. Change your organization structure if you are doing your business in other than company if it is beneficial from the tax point view.
| Particular | Turnover based < 400 crore | Sec. 115BA | Sec. 115BAA | Sec. 115BAB |
|---|---|---|---|---|
| Effective Tax Rate (%) | 26/ 27.82/ 29.12 | 26/ 27.82/ 29.12 | 25.168 | 17.16 |
| MAT | 15 | 15 | NIL | NIL |
| Additional Dep. | Allowed | Not Allowed | Not Allowed | Not Allowed |
| C/F Unabsorbed Adll. Dep. | Allowed | Not Allowed | Not Allowed | Not Allowed |
| Specified deduction | Allowed | Not Allowed | Not Allowed | Not Allowed |
| C/F loss due to spf. Deduction | Allowed | Not Allowed | Not Allowed | Not Allowed |
| Nature of Business | Any | Manufacturing | Any | Manufacturing |
| Year to Start | Any Year | Incorporated on or after 1.3.2016 | Any Year | Incorporated on or after 1.10.2019 and commence mfg. by 31.3.2023 |
| Option for benefits | NIL | To be taken in 1st year Till u/s 139(1) Time form 10IB to be filed | To be taken in any year Till u/s 139(1) Time | To be taken in any year Till u/s 139(1) Time |
| DDT | abolished w.e.f. 1.4.2020 | |||
| MAT Credit allowed | Yes | Yes | NO | NO |
| Post Tax resulting profit in case of Company vs. Firm/LLP | ||||
|---|---|---|---|---|
| Normal Tax | Turnover based <400 crore /> 115BA | Sec. 115BAA | Sec. 115BAB | Firm/ LLP |
| Assumed Profit | 100 | 100 | 100 | 100 |
| Effective Tax Rate (%) | 26/ 27.82/ 29.12 | 25.168 | 17.16 | 31.2/ 34.944 |
| MAT (%) | 15.6/ 16.692/ 17.472 | NIL | NIL | 19.24/ 21.5488 |
| Normal Tax Paid | 26/ 27.82/ 29.12 | 25.168 | 17.16 | 31.2/ 34.944 |
| Balance | 74/ 72.18/ 70.88 | 74.832 | 82.84 | 68.8/ 65.056 |
In view of above analysis, we can take decision of appropriate tax amount, for such purpose we need to do restructure the organisation in view of strategy tax planning.