Tax rates applicable To Company for financial year 2015-2016 – AY 2016-2017

In our last article we have talked about tax rates applicable to an individual, HUF, AOP, BOI, Partnership firm, Cooperative society and local authority for the financial year starting from 1st April 2015. Today, in this article we will talk about the tax rates that is applicable to company for financial year 2015-2016.

For this purpose company includes private limited and public limited company.

Tax rates applicable To Company for financial year 2015-2016

In budget 2015, surcharge applicable to a domestic company with total income of more than Rs 1 Crore but less than Rs 10 Crore has been increased from last year’s 5% to 7%. Surcharge of other domestic companies with more than Rs 10 Crore total income has been increased from last year’s 10% to 12%.

These tax rates will be applicable from 1st of April 2015 after budget 2015 fully approved.

Tax rates applicable to a Domestic Company for financial year 2015-2016 – AY 2016-2017

Particulars Total Income Tax rates Surcharge Education Cess Secondary and Higher Education Cess Effective tax rates
Domestic Companies Less than Rs 1 Crore 30% 0 2% 1% 30.900%
Domestic Companies More than Rs 1 Core but less than Rs 10 Crore 30% 7% 2% 1% 33.063%
Domestic Companies Others 30% 12% 2% 1% 34.608%

Tax rates applicable to a Foreign Company for financial year 2015-2016 – AY 2016-2017

Particulars Total Income Tax rates Surcharge Education Cess Secondary and Higher Education Cess Effective tax rates
Foreign Companies Less than Rs 1 Crore 40% 2% 1% 41.200%
Foreign Companies More than Rs 1 Core but less than Rs 10 Crore 40% 2% 2% 1% 42.024%
Foreign companies Others 40% 5% 2% 1% 43.260%

Minimum Alternate tax (MAT) applicable for financial year 2015-2016

Particulars Total Income Tax rates Surcharge Education Cess Secondary and Higher Education Cess Effective tax rates
Domestic Companies Less than Rs 1 Crore 18.5% 0 2% 1% 19.055%
Domestic Companies More than Rs 1 Core but less than Rs 10 Crore 18.5% 7% 2% 1% 20.389%
Domestic Companies Others 18.5% 12% 2% 1% 21.342%
Foreign Companies Less than Rs 1 Crore 18.5% 0 2% 1% 19.060%
Foreign Companies More than Rs 1 Core but less than Rs 10 Crore 18.5% 2% 2% 1% 19.436%
Foreign companies Others 18.5% 5% 2% 1% 20.008%

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