We are a small 'One person Company' into web portal and online advertising services and registered in 2015. Whats the tax rate for FY19? I consulted with one CA who told me all companies registered before March 2016 are required to pay Income tax at 30% for the FY19. And that 25% is only applicable under 115BA. Is this correct? This is me looking for additional opinions. Please kindly explain in plain English. I get confused with rule books. Many Thanks and Regards Vijay
No thats not correct.
Tax rate for FY 2019-20 will depend on your turnover for FY 2017-18 if its below Rs. 400 crore which it obviously is as you are one person company.
Also you can take benefit of 22% new tax rate which is applicable for FY 2019-20 u/s 115BAA.
If you need professional assistance we can provide you full consultation and handle your taxes for you.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hi,
In case your turnover during FY 2016-17 was below 250 cr, you are eligible for 25% tax rate.
There is no such rule which says that its its applicable only for companies registered after March 2016.
25%
Dear Sir,
Hope you are doing well !!
No, it is not correct.
You are eligible for 25% tax rate.
Hello,
It isn't correct.
a domestic company is chargeable to tax at the rate of 25%, if its turnover or gross receipt does not exceed Rs. 400 crore during the financial year 2017-18.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Dear Vijay,
Here is my reply to your query:
As per section 115BA, Income-tax payable in respect of the total income of a domestic company for the FY 2017-18 shall be computed at the rate of twenty-five per cent, if the conditions contained in sub-section (2) are satisfied:
Only if the above conditions are satisfied lower rate of tax @25% can be opted.
In your case, both the conditions are not satisfied, which results in tax rate @ 30% for FY 2019-20.
Thanks
Divya Chugh
@Divya Chugh Your answer is a little contradictory to the others. I am leaning towards Payal, Lakshita and Vivek's answer that all companies with turnover less than 250cr can get 25% taxation and you do not need to opt for 115BA to get 25 % taxation. I researched a bit as a layman... In incometaxindia.gov.in calculator site .. there are 2 different check boxes for 115ba and turnover and even if you do not select 115ba you can still get 25% taxation. All that matters is turnover unless you are a manufacturing company in which case date of incorporation becomes important...
Correct
Your understanding is correct.
Dear Vijay,
Apologies for the mistake, I misinterpreted your question and answered accordingly.
Thanks
Divya Chugh
Yes, your understanding is correct.
Yes, Your understanding is correct.