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.
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% |
