Income Tax Rate Private Limited Companies FY 2021-22
In India, Private Limited Companies and LLP are most preferred business modes. In Private Limited falls under two different categories one is a domestic company like in which there is no forging investments and another is Foreign Company means a company in which foreign investments are involved. Each company in India need to file its Income Tax return by the end of September, like for FY 2021-22 , return need to be filed by 30 September 2022. The filing of Income tax return is mandatory, means irrespective of turnover , profit & loss ITR need to be filed and ROC compliances need to be carried out. In Finance Budget taxation of Private Limited Company Corporate tax is dived in two category as Turnover above 400 Cr and Turnover below 400 Cr. Income Tax rate on private Limited company @ 25 % for midsize companies. Below is details of Corporate Income Tax Rate in India slab wise for FY 2021-22 AY 2022-23. Apart from income Tax there is surcharge applicable on Private Limited companies.
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Income Tax Rate Private Limited Companies FY 2021-22 AY 2022-23
Domestic Company
| Particulars | Rate |
| Where it opted for section 115BA | 25% |
| Where it opted for section 115BAA | 22% |
| Where it opted for section 115BAB | 15% |
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Income Tax Rate Private Limited Companies FY 2021-22 AY 2022-23
Domestic Company Turnover < Rs. 400 Cr
| Net Income Slab (Gross Taxable Income – deductions) | Income Tax Rate | Surcharge | Health & Education Cess | Rebate u/s 87A (FY 2021-22) |
| Upto 1 crore | 25% | Nil | 4%l | Nil |
| Above 1 crore but upto 10 crore | 25,00,000+ 25% | 7% | 4% | Nil |
| Above 10 crore | 2,50,00,000+ 25% | 12% | 4% | Nil |
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Foreign Company
| Income Slab | Tax Rate |
| Foreign Company | 40% |
| Cess: 4 % on total of income tax + surcharge. | |
Outsource Accounting Save by 40%
- Free Accounting Software
- Monthly Cloud Accounting
- GST & TDS Filing
- Payroll
- Yearly Tax Return Filing
- Consulting by CA
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MAT On Private Limited Company
| MVAT Income Tax | Tax Rate |
| MAT | 15% |
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Income Tax Rate Limited Liability Partnership ( LLP) FY 2021-22 AY 2022-23
Under Income Tax Act , LLP are treated in a similar manner as Partnership firms, On LLP Income Tax is levied at rate of 30% flat. Like in case of individual the benefits of Income tax slabs such as 3 Lac , 5Lac is not available for tax computation of Limited Liability Partnership firm. Whereas interest on capital and remuneration paid to partners is allowed as deduction. However same need to be calculated as per the provisions of Section 40(b) of Income Tax Act 1961.
| Income Slab | Tax Rate | Effect in Budget |
| Income Tax Rate for LLP | 30% | No Changes |
| Cess: 4 % on total of income tax + surcharge. | ||
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