CORPORATE TAXATION
1. Corporate tax rate in case of domestic companies having total turnover or gross receipts in FY.16-17 not exceeding Rs. 250 crores is proposed to be reduced to 25%
2. Rate of Surcharge.
| Rate of Surcharge | Turnover 1 – 10 Crs | Exceeds Rs. 10 Cr. |
| Domestic Companies | 7% | 12% |
| Other than Domestic Co. | 2% | 5% |
3.Surcharge will also be levied at the appropriate rates in cases where the company is liable to tax under section 115JB of the Act.
4.For financial year 2018-19, additional surcharge called the “Health and Education Cess on income-tax” shall be levied at the rate of 4%
5. Deemed dividend in form of loans and advance by Company will be subject to DDT @ 30%
6. As per section 28, from 1st April 2019 any compensation received or receivable in case of cancellation or modification of contract which is related to business will be taxable even in case of employment service. (From 1st April 2019)
7. Profit link deductions shall not be allowed unless the return of income is filed within due date.
8.Relaxation for set off of losses and unabsorbed depreciation under MAT norms and carry forward of losses under normal tax norms for Companies seeking insolvency resolution
9. Transaction of money or property between a wholly owned subsidiary company and its holding company is excluded from gift tax subject to condition.
10. Option trading of Commodity transaction shall be subject to Commodity Transaction Tax
11. Deduction u/s 80-JJAA is allowed if employees employed for 150 days or more in case of apparel or footwear and leather industry.
12.Tax benefit for START UP extended until March 2021 which condition of turnover not exceeding Rs. 25.00 crores for seven years from date of incorporation. Even definition expanded to cover improvement of products or processes or services, or a scalable business model with a high potential of employment generation or wealth creation
13. 100% deduction u/s 80P allowed to Farm Producer Companies when income received from specific activities having turn over up to 100cr.
14. Penalty order for furnishing incorrect report or certificate is now appealable to ITAT.
15. Outcome of Delhi High Court are struck down by introducing provision of ICDS under respective section retrospectively
16. Presumptive taxation u/s 44AE of the Act for heavy goods vehicle (more than 12MT gross vehicle weight) has undergone a change i.e. 1000 per ton per month for each goods vehicle or the amount claimed to be actually earned by the assessee, whichever is higher
