New Penalty provision under section 270A |A blessing in disguise?

Priya kejriwal
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New Penalty provision under section 270A |A blessing in disguise?

Penalty on Concealment of particulars of income or furnishing inaccurate particulars of income has always been a matter of litigation between the department and the assessee.

The scope of such provisions was always a subject matter of litigation since the tax authorities always levied the penalty whenever there was an addition or disallowance made by the AO even in cases where there was no prima facie case against the taxpayer.

The Finance Act, 2016 (FA, 2016) has, with effect from 1.4.2017, inserted section 270A in the Income-tax Act, 1961 with a view to substituting the provisions of section 271(1)(c) dealing with a levy of penalty for concealment of income or furnishing of inaccurate particulars.

The Finance (No. 2) Act, 2019 has amended section 270A with retrospective effect from 1.4.2017.

Which authorities can levy penalty u/s 270A

Penalty u/s 270A of the Act can be imposed by Assessing Officer, Commissioner (Appeals) or the Principal Commissioner or Commissioner.

Scope of penalty u/s 270A

Penalty u/s 270A shall be levied on the under-reported Income or under-reported Income as a consequence of any misreporting thereof.

Quantum of Penalty u/s 270A

ParticularsQuantum
In case of Underreporting of Income50% of the amount of tax payable on under-reported income
In case of Underreporting of Income in consequence of any misreporting thereof200% of the amount of tax payable on under-reported income

What is Under-Reporting of Income?

A person shall be considered to have under-reported his income if, –– 

  1. the income assessed is greater than the maximum amount not chargeable to tax, where no return of income is filed; 
  2. the assessed income is greater than the income determined upon processing under section 143(1)(a), where the return is filed; 
  3. the income assessed is greater than the income assessed or reassessed immediately before such reassessment;
  4. the income assessed or reassessed has the effect of reducing the loss or converting such loss into income; 
  5. the amount of deemed total income assessed or reassessed under section 115JB/115JC is greater than the deemed total income determined in the return processed under section 143(1)(a); 
  6. the amount of deemed total income assessed as per the provisions of section 115JB/115JC is greater than the maximum amount not chargeable to tax, where no return of income has been filed;
  7. the amount of deemed total income reassessed as per the provisions of section 115JB/115JC is greater than the deemed total income assessed or reassessed immediately before such reassessment.

What is Mis-reporting of income?

Cases of misreporting of income shall be the following – 

  1. misrepresentation or suppression of facts; 
  2. failure to record investments in the books of account; 
  3. the claim of expenditure not substantiated by any evidence; 
  4. recording of any false entry in the books of account; 
  5. failure to record any receipt in the books of account having a bearing on total income; and 
  6. failure to report any international transaction or any transaction deemed to be an international transaction or any specified domestic transaction, to which the provisions of Chapter X of the act.

Section 270AA has been inserted into the Act to reduce the litigation and tet the speedy recovery of the tax along with interest.

In section 270AA of the Act, the Assessee has been provided with an option to making application to AO for granting immunity from imposition of penalty under section 270A and initiation of proceedings under section 276C or section 276CC, subject to fulfilment of following conditions: –

  • (a) the tax and interest payable as per the order of assessment or reassessment under sub-section (3) of section 143 or section 147, as the case may be, has been paid within the period specified in such notice of demand; and
  • (b) no appeal has been filed

The application has to be made in form No. 68 within 30 days from the end of the month in which the order has been received by the Assessee.

After providing opportunity to the Assessee, the AO shall pass the order either accepting the application or rejecting the same within one month from end of month in which application is made by the Assessee. The order so passed by the AO shall be final and is non appealable. 

If the application is accepted by the AO, then no appeal u/s 246A or revision u/s 264 shall be admissible. However, the Assessee can file appeal u/s 246A or revision u/s 264 of the Act, if the immunity application has been rejected by the AO. The appeal in such cases has to be filed with condonation of the delay.

Immunity u/s 270AA is not available in the cases covered u/s 270A(9) i.e. misreporting of income.

Accordingly, immunity from penalty can be granted only in the case where penalty has been initiated on the ground of under-reporting of income.

Further, immunity is not available in piecemeal or issue wise, it has to be for the Assessment Order in its entirety.

Therefore, the Assessee has to forego his right to appeal with respect to all the additions made in the Assessment Order of the assessee. As per the strict interpretation of the Section, Assessee cannot pray for immunity on issue wise.

Conclusion:-

As compared to the earlier penalty mechanisms, new provisions are certainly at a higher objective to fulfil.

However, as is the case with any new provisions of law, there are a number of unresolved issues which need to be resolved in order to make these provisions workable in a clear and litigation free manner.

The income Tax department is also taking a technological turn with the new Income Tax portal designed to serve taxpayers and stakeholders. get the full coverage about the New Income Tax portal here.

FAQ’s for seek VC and seek VC adjournment for appearing in e-proceeding.

Priya kejriwal
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0
FAQ’s for seek VC and seek VC adjournment for appearing in e-proceeding.

What is VC?

VC stands for ‘Video Conferencing’. Using the VC facility, an assessee is enabled to express or submit one’s response orally before an Income Tax Authority who has initiated the proceeding and expect the response from the user.

This facility has been enabled by the department as a substitute for personal appearance/hearing before an Income Tax Authority.

The facility for oral submission is in addition to submitting response in writing.

Who can avail video conferencing facility?

It shall be noted that, assessee on whose account hyperlink of video conference is enabled against a notice, will only be eligible. Question that may arise is how to check such link appearance, then for that assessee will be required to login to e-filling, then will be required to click on e-Proceeding and will be required to select from pending proceeding link, which will show the link for video conference (If allowed).

What is the process to seek VC facility?
If a VC hyperlink is found against a notice issued by the department under the column “Video Conferencing”, the user needs to click on that hyperlink. On clicking, another window appears with the notice details prefilled.

  • Click on the hyperlink “Seek VC”.
  • On click on the same, a window appears. The user needs to choose the appropriate reason from the drop-down values. If there are no predefined dropdown, the user may select “Others” and enter the description in text box.
  • Thereafter, a text box will appear wherein user needs to provide reasons in detail for seeking VC and also can provide the date on which the user desires to submit oral submission. (Maximum 4000 characters)
  • If the user wants to upload any document supporting such a claim, there is provision to attach the same by click the button “choose File”. The document that are PDF format can only be attached and should not exceed 5 MB.
  • Now Click, submit button. A success message will be displayed on submission of request.

How to check the status of VC request raised?

VC request raised by assessee will either be approved or rejected. If approved, then the department will send an email and SMS communication informing the date and time for VC along with VC URL. The VC details will be displayed in the user’s e-proceeding VC Notice schedule. The login password will be shared 2 hours before the scheduled time of VC on to the registered mobile number. If rejected, then rejection remarks and rejection letter will be displayed to the assessee in VC Notice schedule in addition to email and SMS communication.

How to check the status of VC request ?

Steps are quiet simple:-

  • Login to e-Filing->e-Proceeding->Select Proceeding Name ->
  • Click VC hyperlink under the Video conferencing column. On click of VC hyperlink, the details of VC request submitted will be displayed.

• If request is approved, scheduled date & time of VC will be displayed under the column “VC date & Time” and status will be displayed as “Approved”. Under ITD Remarks column “VC Schedule Notice” will be displayed in hyperlink to view and download. ‘VC link’ will be visible 2 hours before the scheduled time of VC under the ‘VC link details’ column.

• If request is rejected, status will be displayed as “Rejected”. Under ITD Remarks column “Remarks” and “Rejection letter” will be displayed in hyperlink to view and download along with email & SMS communication.

What if video conference date and time is not suitable?

In case if video conference date and time given by department is not suitable than in that case assessee may submit adjournment request and can seek other date and time for such video conference. This can be done by clicking on “Seek VC Adjournment”. The point which is worth noting is the said request is required to be submitted before expiry of video conference date and time. If the said time is expired than, no request for adjournment will be accepted.

How assessee will be able to join the meeting?

If assessee wants to join the meeting, then he will be required to communicate video conference URL (which is communicated by department) to the browser. On opening of site, assessee will be required to enter the user id and password. The user name will be the registered id of taxpayer and the password for the same will be communicated by department.

While attending meeting, assessee shall keep in mind following points, that he will be required to keep identification document like Aadhaar, PAN Card, Passport or any other government issued identification document handy and share as an when required. He will be required to keep softcopy of all the documents on which you want to place reliance during the Videoconference and which may be shared during video conference.

What if video conference failed due to technical issues?

If due to technical issue video conference is not conducted than in that case, department will cancel the existing video conference and will share new date and time for video conferencing and required link for connecting.

Can Authorized Representative also join the VC meeting?

It shall be noted that only assessee can join Video Conference; however, in case were any authorized representative has been appointed through the e-filing account for such proceeding, then both assessee and authorized representative can join.

Can assessee avail the recording of meeting?

Yes, after video conferencing is successfully conducted. Further ‘VC recording’ hyperlink will be displayed, through which assessee can avail the recording of meeting. Further no charge will be paid by assessee for availing such recording, and it shall be made available to assessee within two days of video conference.

By clicking “Seek Adjournment” which facility is provided to assessee? Who can avail such facility?

If assessee is not able to join the meeting or he is not able to attend the hearing than in that case assessee can avail the facility of seek adjournment, by clicking on it assessee submits request to extend the response due date of a notice issued by an Income Tax authority. Only those taxpayers for whom hyperlink “Seek Adjournment” is enabled against a notice, can avail the facility of adjournment.

Is there any date limit within which adjournment request can be sought?

If assessee wants adjournment and he has decided to get it before response date mentioned in noticed, then he may seek adjournment up to 15 days from response date mentioned in notice. On other hand if adjournment is applied after response date than he may seek adjournment up to 15 days from date of seeking adjournment.

Have you received any VC links? Schedule a Consultation Call if you wish to hire a Legal Counsel to conduct VC hearing on your behalf.

Virtual CFO Services – A smart choice for newgen

Priya kejriwal
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0
Virtual CFO Services – A smart choice for newgen

What is Virtual CFO?

Virtual CFO (or vCFO for short) stands for virtual Chief financial officer. A virtual CFO is an outsourced service provider offering high skill assistance in financial requirements of an organization, just like a chief financial officer does for large organizations. A virtual CFO may be a single person or an entity.

But instead of delivering those services in person, as a full-time employee, the virtual CFO works remotely, on a contractual,part-time schedule.

Why does one need a Virtual CFO?

If you’re launching a startup, there are a number of roles that you need to fill straight away such as CEO and marketing manager. Many startups choose to leave the job of hiring a Chief Financial Officer, or CFO, until later.

This is where hiring a virtual CFO could make a lot of sense for small companies.

Growing your company’s revenue is a beautiful thing. There’s no feeling quite like the one that comes with hitting a financial goal that’s long been on your horizon. But reaching new revenue levels also comes with growing pains.

If you’ve hit that point, now the business needs a financial executive. But at this stage it’s also highly unlikely you can afford to hire a full-time CFO.This is where there is a Role of Virtual CFO services where you can balance out the cost and at the same time enjoy the benefits of professional consultation. 

If you’ve got a full-time CFO then you’re already in safe hands. A virtual CFO isn’t going to offer anything you don’t already have. If you’re lacking a CFO, however, then hiring a virtual CFO comes with a number of benefits.

Some Nuts and bolts of Virtual CFO includes:-

  • Broad Expertise
  • Greater gain Access to Their Contacts
  • Better return on your investment
  • Customized service based on your needs and budget
  • Someone to grow with you
  • Deep industry knowledge, diverse financial expertise
  • Technology and resource recommendations
  • Rebuilding balance sheet
  • Enhance financial processes

Virtual CFO services are provided to the businesses who have not appointed an in-house CFO (Chief Financial Officer). In the present scenario, many challenges are being faced by the organizations in terms of growth, financial aspects, accounting as well as management. For this a designated position is required to be appointed who can be primarily entrusted with managing the financial risks, company valuation and reviewing the various KPIs relevant to the Startup or SMEs.


Thus a virtual CFO shall be there to meet the challenges effectively by providing the financial and professional advice, analysis and support to the management. 

As a young, growing business ourselves, we understand what you’re going through. We have the experience and the tools to help you stay in control of your finances, improve your cashflow and keep investors happy.

So, if your foggy understanding of your business’s financials inhibits and your ability to make decisions, working with a virtual CFO may be a good idea.

To take the first step in exploring a virtual CFO relationship, schedule your virtual CFO consultation with us!

QRMP: Quarterly Return Monthly Payment Scheme under GST

Vedant Biyani
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QRMP: Quarterly Return Monthly Payment Scheme under GST

Taking another step towards the goal of increasing “Ease of doing business” in India and providing relief to small taxpayers; the GST Council in their 42nd Meet on 5th October 2020 proposed a quarterly return filing system for small taxpayers to be implemented w.e.f. 1st January 2021 for the 4th Quarter.

QRMP or Quarterly Return Monthly Payment Scheme is an optional scheme that CBIC has rolled out for small-scale businesses having aggregate turnover up to 5 crore rupees to furnish returns on a quarterly basis along with monthly payment of tax.

Thus, the small taxpayers would only need to file 8 returns (4 GSTR 1 and 4 GSTR 3B) in a year as compared to 16 returns a year at present.

Eligibility for QRMP

A registered Taxable Person whose Aggregate turnover (PAN wise) does not exceed ₹5 Crores in the preceding Financial Year, is eligible for the QRMP Scheme.

Further, in case the Aggregate Turnover exceeds ₹5 Crores during any Quarter in the current Financial Year, the registered person shall not be eligible for the scheme from the next Quarter.

Time Limit to opt for QRMP scheme

Sr. No.Period – QuarterTimeline
1.April – June1st Feb 2021 to 30th April 2021
2.July – Sept1st May 2021 to 31st July 2021
3.Oct-Dec1st August 2021 to 31st Oct 2021
4.Jan – March1st Nov 2021 to 31st Jan 2022

Monthly Payment of Tax under QRMP

Registered Persons under the QRMP Scheme need to pay the tax due in each of the first two months by 25th of the following month of the Quarter by depositing the due amount in FORM GST PMT-06, by selecting Monthly Payment for the Quarterly Taxpayer as the reason for generating Challan.

How can Taxpayers pay their tax liability under QRMP?

Fixed Sum Method

The Taxpayer must pay an amount of tax mentioned in a pre-filled Challan in form GST PMT-06 for an amount equal to 35% of the tax paid in cash in the previous Quarter or 100% of the tax paid in the previous month (in case GSTR-3B was previously filed Monthly during the last Quarter).

Self-Assessment Method

Manual Computation of taxes to be paid in cash where the tax liability is equal to the liability on outward supplies plus tax under RCM on inward supplies net Eligible ITC.

If the cash balance is available in the Electronic Cash Ledger, then only a balance deposit would be sufficient.

Invoice Furnishing Facility (IFF)

The registered persons opting for the Scheme would be required to furnish the details of an outward supply in FORM GSTR-1 quarterly as per rule 59 of the CGST Rule.

For each of the first and second months of a quarter, such a registered person will have the IFF to furnish the details of such outward supplies to a registered person, as he may consider necessary, between the 1st day of the succeeding month till the 13th day of the succeeding month.

The said details of outward supplies shall, however, not exceed the Rs. 50 Lakhs in each month. It may be noted that after the 13th of the month, this facility for furnishing IFF for a previous month would not be available.

As a facilitation measure, a feature of continuous upload of invoices would also be provided for the registered persons wherein they can save the invoices in IFF from the 1st day of the month till the 13th day of the succeeding month.

The facility of furnishing details of invoices in IFF has been provided so as to allow details of such supplies to be duly reflected in the FORM GSTR-2A and FORM GSTR-2B of the concerned recipient.

The said facility is not mandatory and is only an optional facility made available to the registered persons under the QRMP Scheme.

The details of invoices furnished using the said facility in the first two months are not required to be furnished again in FORM GSTR-1.

Accordingly, the details of outward supplies made by such a registered person during a quarter shall consist of details of invoices furnished using IFF for each of the first two months and the details of invoices furnished in FORM GSTR-1 for the quarter.

At their option, a registered person may choose to furnish the details of outward supplies made during a quarter in FORM GSTR-1 only, without using the IFF.

Quarterly GSTR-3B Return

  • Such registered persons would be required to furnish FORM GSTR-3B, for each quarter, on or before the 22nd or 24th day of the month succeeding such a quarter.
  • In FORM GSTR-3B, they shall declare the supplies made during the quarter, ITC availed during the quarter, and all other details required to be furnished therein.
  • The amount deposited by the registered person in the first two months shall be debited solely for the purposes of offsetting the liability furnished in that quarter’s FORM GSTR-3B.
  • However, any amount left after the filing of that quarter’s FORM GSTR-3B may either be claimed as a refund or may be used for any other purpose in subsequent quarters.
  • In case of cancellation of registration of such person during any of the first two months of the quarter, he is still required to furnish the return in FORM GSTR-3B for the relevant tax period.

Return Filing Due-Dates w.e.f 1st Jan 2021

Category of TaxpayersGSTR-1Invoice Filing FacilityPMT- 06 for M 1PMT-06 for M 2GSTR-3B
Taxpayers who are required to file monthly returns: (whose ATO TO is more than 5 Cr. Or who have not opted from QRMP Scheme)11th of the following monthNANANA20th of the following month
Taxpayers who have opted for QRMP Scheme13th day of the month following the quarter1st to 13th day in M 1 and M 225th day of the month following M 125th day of the month following M 2
22nd or 24th day of the month following the quarter

Applicability of Late Fee

The late fee will be applicable on the delay in furnishing the quarterly GSTR-3B and GSTR 1 within the due date, i.e., Rs. 25 per day (CGST/SGST) subject to a maximum late fee of ₹5,000(CGST/SGST)

However, it is clarified that no late fee is applicable for delay in payment of tax in the first two months of the quarter in form GST PMT-06.

That’s is it for the 42nd meet of the GST council. With the onset of Covid-19, the GST council discussed in their 43rd meet regarding exemption on goods and service taxes. Check out the full 43rd GST Council Meeting Updates and Relaxations here.

Rates of TDS applicable for financial year 2021-22 or assessment year 2022-23

Vedant Biyani
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0
Rates of TDS applicable for financial year 2021-22 or assessment year 2022-23

Tax Deducted at Source, also known as TDS, is a system of taxation where the person/entity responsible for making specific payments deducts the applicable tax before the payment is credited to the receiver if it exceeds threshold limit specified in particular section.

There are various sections in Income Tax Law, which specify different TDS rates, nature of payment & its threshold limits for TDS and the same have been summarized in this article.

Section No.Nature of Payment ThresholdTDS Rate
192 Salaries As per Slab Normal Slab Rate
(or)
New Tax Regime Slab Rate as opted by employee
192A Premature withdrawal from EPF 50,000 10%
193 Interest on Securities 2,50010%
194Dividends 5,000 10%
194AInterest (Banks) 50,000(Senior Citizen)
40,000(Others)		10%
194A Interest (Others)5,000 10%
194B Winning from Lotteries 10,000 30%
194BB Winnings from Horse Race10,000 30%
194C Contractor – Single Transaction 30,0001%(Ind/HUF)
2%(Others)
194C Contractor – During the F.Y.1 Lakh1%(Individual/HUF)
2%(Others)
194C Transporter (44AE) declaration with PAN––
194D Insurance Commission (15G-15H allowed) 15,0005%(Individual)
10%(Company)
194DA Life insurance Policy 1 Lakh5%
194E Non-Resident Sportsmen or Sports Association–20%
194EE NSS 2,500 10%
194F Repurchase Units by MFs –20%
194GCommission – Lottery 15,000 5%
194HCommission / Brokerage 15,000 5%
194I(a)Rent of Plant / Machinery / Equipment 2.40 Lakh 2%
194I(b)Rent of Land Building & Furniture2.40 Lakh 10%
194IA 

Transfer of certain immovable property other than agriculture land50 Lakh1%
194IB

Rent by Individual / HUF not liable to tax audit50,000/PM 
5%
194IC Payment of monentary consideration under Joint Development agreement –10%
194J
Fees for technical services, call center, royalty for sale etc. 30,000 2%
194J
Fee for professional service or royalty etc. 30,000 10%
194K Payment of income in respect of units payable to resident person –10%
194LA Compensation on transfer of certain immovable property2.50Lakh10%
194LB Income by way of interest from infrastructure debt fund(non-resident) –5%
194LBA Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. –10%
194LBB Income in respect of investment of investment fund –10%
194LBC Income in respect of investment in securitization trust –30%(Others)
25%(Individual & HUF)
194M

Payment to commission( not being insurance commission), brokerage etc. by individual & HUF who are not liable to deduct TDS under section 194C, 194H, or 194J. 50 Lakh5%
194N Cash withdrawal in excess of 1 crore during the previous year from 1 or more account with a bank or co-operative society1 Cr2%
194NCash withdrawal in excess of 20 Lakhs during the previous year if assessee has not furnished return for last 3 assessment years20 Lakh2%
194NCash withdrawal in excess of 1 Cr during the previous year if assessee has not furnished return for last 3 assessment years 1 Cr5%
194OTDS on e-commerce participants5 Lakh1%
194QPurchase of goods (applicable w.e.f 01.07.2021) 50 Lakh0.10%
195Payment of any other sum to a Non-resident(The rate of TDS shall be increased by applicable surcharge and Health & Education cess):-
a) Income in respect of investment made by a Non-resident Indian Citizen–20%
b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen–10%
c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112–10%
d) Income by way of long-term capital gains as referred to in Section 112A–10%
e) Income by way of short-term capital gains referred to in Section 111A–15%
f) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A–20%
g) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC)– 20%
h) Any other Income–30%
194PTDS on Senior Citizen above 75 YearsRefer Note 1 Refer Note 1
206ABTDS on non-filers of ITR at higher rates
(applicable w.e.f 01.07.2021)		Refer Note 2 Refer Note 2

Note 1:-

A senior citizen of the age of 75 year or above is not required to file the return of income, if the
following conditions are satisfied –

  • The senior citizen is resident in India and of the age of 75 or more during the previous year,
  • He has only pension income and may also have interest income from the same bank (specified bank – to be notified by the CG) in which he is receiving his pension income,
  • He shall be required to furnish a declaration to the specified bank. The declaration shall be containing such particulars, in such form and verified in such manner, as may be prescribed.

Note 2:-

The TDS on non -filers of ITR at higher rates This section shall not apply where the tax is required to be deducted under sections 192, 192A, 194B, 194BB, 194LBC or 194N of the Act. The Resident Indian are liable to pay twice the rate specified in the relevant provision of the Act; or twice the rate or rates in force; or the rate of 5%. 

Faceless Penalty Scheme, 2021: Simplified

Priya kejriwal
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0
Faceless Penalty Scheme, 2021: Simplified

The Central Board for Direct Taxes (CBDT) vide Notification No. 3 of 2021 dated January 12, 2021, has notified the “Faceless Penalty Scheme” for conducting penalty proceedings under the Income-tax Act, 1961 (Act) in a faceless manner.

The said scheme is aligned with the Faceless Assessment Scheme and the Faceless Appeal Scheme. It lays down the procedure for virtually conducting penalty proceedings without any physical interaction between the taxpayer and the Income-tax Department.

The said Scheme leverages technology developments and aims to live up to the Honourable Prime Minister’s vision of improving transparency, efficiency, and accountability in tax administration.

Section 274 of the Income Tax Act provides for the procedure, for imposing a penalty (for underreporting or misreporting of income u/s 270A) under Chapter XXI of the Act.

In response to a showcase notice issued by the Assessing Officer (AO), the assessee or his authorised representative was still required to visit the office of the Assessing Officer.

With the advent of the Faceless Assessment Scheme, 2019, to ensure that the reforms initiated by the Department to eliminate human interface from the system reached the next level, it was imperative to launch a Faceless Penalty Scheme on the lines of Faceless Assessment Scheme, 2019.

Therefore, the Finance Act 2020 has inserted an enabling provision in the form of a new sub-section (2A) in section 274 of the Act to provide that the Central Government may notify an e-scheme for imposing a penalty to impart greater efficiency, transparency and accountability.

The new faceless penalty proceedings to be conducted under the Faceless Penalty Scheme, 2021:

Sr No.ParticularsFaceless Penalty Proceedings under Faceless Penalty Scheme, 2021
1.Applicability All pending and new Penalty Proceedings w.e.f. 12.1.2021.
2.Penalty Adjudicating AuthorityDynamic Jurisdiction comprised in any Penalty Unit in Regional Faceless Penalty Centre (RFPC) under the overall monitoring and supervision of National Faceless Penalty Centre (NFPC).
3.Penalty Notice Issuing Authority National Faceless Penalty Centre (NFPC)
4.Assignment of Penalty ProceedingsThe NFPC assigns the Penalty Proceedings to any Penalty Unit located in any one Regional Faceless Penalty Centre through an automated random allocation system.
5.Inquiries/Adjudication during the course of penalty proceedingsThe NFPC may issue appropriate notice or requisition u/s 274 read with 270A, to the assessee or NFAC/AO, for obtaining any further information, documents or evidence, as required by the Penalty Unit in the Regional Faceless Penalty Centre, to which the penalty proceedings have been assigned by the NFPC.
6.Provision of Draft Penalty OrderDraft Penalty Order is to be passed by the Penalty unit in the Regional Faceless Penalty Centre, to which the penalty proceedings have been assigned by NFPC.

This Draft Penalty Order shall be examined by NFPC based on Risk Management Parameters and this draft Penalty Order may be sent by NFPC for Review to a Penalty Review Unit.
7.Action on Draft Penalty OrderThe penalty review unit shall review the proposal of penalty unit, whereupon it may concur with, or suggest a modification to, such proposal, for reasons to be recorded in writing, and intimate the National Faceless Penalty Centre.

Where the penalty review unit concurs with the proposal of the penalty unit, the National Faceless Penalty Centre shall pass the Final Penalty Order.

Where the penalty review unit suggests a modification, the National Faceless Penalty Centre shall assign the case to a specific penalty unit, other than the original penalty unit in any one of the Regional Faceless Penalty Centres through an automated allocation system.
8.Final Penalty OrderWhere the case is assigned by NFPC to a new penalty unit, such penalty unit, after considering the material on record including suggestions for modification and reasons recorded by the penalty review unit,

(a) in a case where the modifications suggested by the penalty review unit are prejudicial to the interest of assessee, as compared to the draft penalty order of the original penalty, shall follow the same procedure as laid down in point no.7 above and prepare a revised draft order for imposition of penalty;

or(b) in a case where the modification is not prejudicial to the interest of assessee, shall prepare a revised draft order for imposition of penalty;

or(c) may propose non-imposition of penalty, for reasons to be recorded in writing, and send such order or reasons to the National Faceless Penalty Centre;

Upon receipt of revised draft order from the penalty unit, the National Faceless Penalty Centre shall pass the penalty order as per such draft and serve a copy thereof upon the assessee or not impose penalty under intimation to the assessee.

Where in a case, as referred to in sub-clause (a) or (b) of clause (i), the National Faceless Penalty Centre has passed a penalty order, or not initiated or imposed penalty, as the case may be, it shall send a copy of such order or reasons for not initiating or imposing a penalty to the jurisdictional AO or the National Faceless Assessment Centre, as the case may be, for such action as may be required under the Act.
9.Mode of Interface between the Assessee and the Penalty Adjudicating AuthorityAll the communication between the assessee and the NFPC is to be done exclusively through Electronic Mode via the ‘proceedings functionality in the ITBA Module.

As the case may be, the assessee or his authorised representative may request for a personal hearing to make his oral submissions or present his case before the penalty unit under this Scheme.

The Chief Commissioner or the Director-General, in charge of the Regional Faceless Penalty Centre, under which the concerned appeal unit is set up, may approve the request for personal hearing, if he is of the opinion that the request is covered by the circumstances as may be notified by CBDT.

Where the request for personal hearing has been approved by the Chief Commissioner or the Director-General, in charge of the Regional Faceless Penalty Centre, such hearing shall be conducted exclusively through video conferencing or video telephony, including use of any telecommunication application software which supports video conferencing or video telephony, in accordance with the procedure laid down by the Board.

Related article: CBDT extends various compliance dates due to Covid-19 Second Wave

Steps taken by CBDT to implement Faceless Penalty Scheme:

National Faceless Penalty Centre

These centres are made to facilitate the conduct of faceless penalty proceedings in a centralised manner and vest it with the jurisdiction to impose penalties in accordance with the provisions of this Scheme

Regional Faceless Penalty Centres

As it may deem necessary, to facilitate the conduct of faceless penalty proceedings, which shall be vested with the jurisdiction to impose penalty in accordance with the provisions of this Scheme

Penalty Units

As it may deem necessary, to facilitate the conduct of faceless penalty proceedings, to perform the function of drafting penalty orders, which includes

  • Identification of points or issues for the imposition of penalty under the Act
  • Seeking information or clarification on points or issues so identified
  • Providing the opportunity of being heard to the assessee or any other person
  • Analysis of the material furnished by the assessee or any other person
  • Such other functions as may be required for imposing a penalty

Penalty Review Units

As it may deem necessary, to facilitate the conduct of faceless penalty proceedings, to perform the functions of review of draft penalty order, which includes

  • Checking whether the relevant material evidence has been brought on record
  • Whether the relevant points of fact and law have been duly incorporated in the draft order
  • Whether the issues on which penalty is to be imposed have been in the draft order
  • Whether the applicable judicial decisions have been considered & dealt with in the draft order
  • Checking arithmetical correctness of computation of penalty if any
  • Such other functions as may be required for review

The board may specify their respective jurisdiction.

The Notification can be accessed at:https://www.incometaxindia.gov.in/communications/notification/notification_no_3_2021.pdf

Will the National Faceless Penalty Scheme help to boost transparency? Will objectivity in the penalty proceedings may smoothen the experience of taxpayers? Will it help in achieving better compliance in the long term?

Well only time, taxpayers and government authority will decide that!

Section 115BAA – New tax rate of 22% on domestic Companies

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Section 115BAA – New tax rate of 22% on domestic Companies

The new section – Section 115BAA has been inserted in the Income Tax Act,1961 to give the benefit of a reduced corporate tax rate for domestic companies.

Section 115BAA states that domestic companies have the option to pay tax at a rate of 22% from the FY 2019-20 (AY 2020-21) onwards if such domestic companies adhere to certain conditions specified.

Conditions specified under eligibility criteria of section 115BAA

All domestic companies shall have an option to pay income tax at the rate of 22% (plus applicable surcharge and cess), provided the following conditions are complied with:

Such companies should not avail any exemptions/incentives under different provisions of income tax. Therefore, the total income of such company shall be computed without:

1Section – 10AASpecial provisions in respect of newly established Units in Special Economic Zones
2 Section – 32(1)(iia) Additional Depreciation   (it is pertinent to note that this restriction is only on additional depreciation and regular depreciation is permitted to be reduced from the total income of the assessee so long as it does not pertain to other deductions enumerated in this table)
3 Section 32AD Investment-Linked Deduction
4 Section – 33AB Tea development account, coffee development account and rubber development account
5 Section – 33ABA Site Restoration Fund
6 Section 35 Expenditure on Scientific Research
7 Section 35 AD Deduction in respect of expenditure on specified business
8 Section – 35CCC Expenditure on the agricultural extension project
9 Section – 35CCD Expenditure on a skill development project
10 Chapter VI A No deductions under Chapter VI A can be made while computing the total income for Section 115BAA, subject to the following exceptions:

a. Section – 80JJAA: Deduction in respect of employment of new employees. While all other deductions like 80C, 80G, etc cannot be availed while computing total income for section 115BAA, there is no such restriction on section 80JJAA deduction.

b. Section 80LA: Persons having eligible units in the International Financial Services Centre referred to in section 80LA(1A) shall be allowed to claim deduction u/s. 80LA while computing total income for section 115BAA.

c. Section 80M: Deductions in respect of inter-corporate dividends. Inserted vide Finance Bill, 2020, this deduction can be availed w.e.f. AY 2021-2022 while computing total income for section 115BAA.

Claiming a set-off of any loss carried forward or depreciation from earlier years, if such losses were incurred in respect of the aforementioned deductions

A claim by an amalgamated company for set-off of carried forward loss or unabsorbed depreciation belonging to an amalgamating company if such loss or unabsorbed depreciation is on account of the above deductions; claiming a deduction for additional/accelerated depreciation. The normal depreciation can however be claimed.

The above losses shall be deemed to have been allowed and shall not be eligible for carrying forward and set off in subsequent years this means that if the company opts for 115BAA then the opportunity for claiming set-off is lost forever.

Such companies will have to exercise this option to be taxed under section 115BAA on or before the due date of filing income tax returns. Once the company opts for section 115BAA in a particular financial year, it cannot be withdrawn subsequently.

The option should be in Form 10-IC, as notified by the CBDT. The form should be submitted online under a digital signature or an electronic verification code.

The new effective tax rate, which will apply to domestic companies availing the benefit of section 115BAA is 25.168%. The break up such tax rate is as follows:

Base tax rate Surcharge applicable Cess Effective tax rate
22% 10% 4% 22*1.1*1.04 = 25.168%

Such companies will not be required to pay Minimum Alternate Tax (MAT) under section 115JB of the act.

Comparison of Effective Tax Rate (inclusive of surcharge and cess) where company opts for Section 115BAA or not:

Total Income Effective Tax Rate (inclusive of surcharge and cess) Effective Tax Rate (inclusive of surcharge and cess)
Co. opts section 115BBA Co. doesn’t opts section 115BBA
Up to Rs. 1 crore 25.17% 26%
More than Rs. 1 crore but up to Rs. 10 crore 25.17% 27.82%
More than Rs. 10 crore 25.17% 29.12%

Let us now understand the Section 115BBA with the help of an example:-

ABC Ltd. was incorporated in years 2000-01, purchased a new plant and machinery of Rs. 10 lakhs on 01-04-2020.

Its turnover for the previous year 2017-18 was less than Rs. 400 crore and, therefore, it would be chargeable to tax at the rate of 25% for the Assessment Year 2020- 21.

The total income of the company for Assessment Year 2021-22 before allowing for additional depreciation in respect of new plant and machinery is Rs. 20 lakh.

For the Assessment Year 2021-22, the company shall have only 2 options – opt for section 115BAA or pay tax as usual at the rate of 25%.

The total income of the company and tax thereon in both the cases shall be computed as follows:

ParticularsIf co. opts for Section 115BAAIf Co. doesn’t opt for Section 115BAA
Total Income before allowing additional depreciation20,00,00020,00,000
Less: Additional depreciation available as per section 32(1)(iia) [Rs.10 lakh * 20%] NA2,00,000
Total Income (a)20,00,00018,00,000
Applicable tax rate (b)22%25%
Tax on total income (c=a*b)4,40,0004,50,000
Add: Surcharge (d)44000Nil
Tax After Surcharge (e= c + d)4,84,0004,50,000
Add: 4% Health and education cess (f= e*4%) 19,36018,000
Total Tax liability (g= e + f)5,03,3604,68,000
Extra Tax payable under Section 115BAA35,360–

If in above example, the company has not purchased any new plant and machinery during the year 2020-21 even in that case the amount of tax saving will not be much if company opts for section 115BAA 

ParticularsIf co. opts for Section 115BAAIf Co. doesn’t opt for Section 115BAA
Total Income (a)20,00,00020,00,000
Applicable Tax rate (b)22%25%
Tax on total income (c=a *b)4,40,0005,00,000
Add : Surcharge (d)44000Nil
Tax after surcharge (e= c+d)4,84,0005,00,000
Add : 4% Heath and education cess (f = e* 4 %)19,36020,000
Total Tax Liability (g= e+f)5,03,3605,20,000
Tax savings if co. opts 115BAA16,640

Can a company opt out of this section?

The domestic companies who do not wish to avail of this concessional rate immediately can opt for the same after the expiry of their tax holiday period or exemptions/incentives as mentioned in point 2 earlier.

However, once such a company opts for the concessional tax rate under section 115BAA of the Income Tax Act,1961, it cannot be subsequently withdrawn.

Also, check out the Complex Section 14A of the Income Tax Act, 1961.

Snapshot of compliance tracker for ROC forms – FY 2020-21

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Snapshot of compliance tracker for ROC forms – FY 2020-21

All the business structures registered in India i.e. Private Limited Company, Public Limited Company, One Person Company, Limited Liability Partnership etc. need to file certain forms every year with the Registrar of Companies. All the Companies and LLPs registered in India are required to comply with ROC Annual Filing under the Companies Act, 2013 and Limited Liability Partnership Act, 2008 respectively.

The ROC compliance calendar for regular and annual filings during the year 2021 is provided below:

DescriptionForm*Due datePeriod
An annual statement for submitting details of the business of the LLP and its partners. All registered LLPs should file the form within 60 days from the close of the end of the financial year.
Form 11
(Annual returns of an LLP)
30 May 2021

FY 2020-21


Director KYC submission for DIN holders as of 31 March 2021. Every person who has a DIN allotted and the status of the DIN is ‘Approved’.
DIR-3 KYC
30 September 2021
FY 2020-21


To be filed in less than 15 days from the conclusion of AGM. Every company should intimate the ROC about the appointment of an auditor.Form ADT-1
(Appointment of auditor)
14 October 2021
FY 2020-21
The form should be filed annually with the ROC. It is also known as the statement of accounts and solvency. Every LLP should submit the data of its profit or loss and balance sheet.
Form 8
(Financial Reports of an LLP)
30 October 2021

FY 2020-21
To be filed 30 days from the conclusion of AGM. Specified companies should file the financial statements with the ROC.


Form AOC-4
(Filing of annual accounts)		30 October 2021


FY 2020-21



To be filed within 60 days from the conclusion of AGM. Every company should file an annual return, furnishing details about the company.

MGT-7
(Filing of annual returns) 
29 November 2021



FY 2020-21

Filing of resolutions with the ROC regarding Board Report and Annual Accounts. The details of the resolutions passed should be filed.

MGT-14
(Filing of resolution with MCA) 
Within 30 days of the board meeting

Within 30 days of the board meeting

All MSMEs should file a half-yearly return with the registrar for outstanding payments to Micro or Small Enterprises.

Form MSME
(outstanding payments to MSME’s)
30 April 2021 and 31 October 2021

30 April 2021
(For the period of  October’20 – March’21)
31 October 2021
(For the period of  April’21 – September’21)

The due dates mentioned are subject to change as and when notified by the concerned department.

Note: Measure taken to provide relief during COVID-19 for FY 2020-21:

The Companies (Auditor’s Report) Order, 2020 will be applicable from FY 2020-21 instead of FY 2019-20. Hence, CARO 2020 has to be followed for audits commencing April 2021.

It is very important to file all your ROC Compliance forms within the time limit prescribed by the MCA. Non-filing of annual returns entail hefty penalties. These are over and above normal fees charged by MCA and there is no way to reduce the penalties.

How to file an RTI application: A step-by-step guide

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How to file an RTI application: A step-by-step guide

If that’s the question on your mind, you are at the right place. In this article, we will see how to file an RTI application with ease.

A lot of Indians have heard about RTI but are not very clear on what is RTI and what exactly is the meaning of RTI.

It is not a very complex topic but due to lack of awareness, we get overwhelmed by the mention of it.

RTI’s meaning is quite clear when you try to understand how to use it. In simple words, RTI means that any citizen of India can ask for any information which is supposed to be public knowledge. 

Right to Information Act has been implemented by the Government of India to provide a right to its citizens to ask the relevant questions to the Government and various public utility service providers, in a practical manner.

This was done to replace the earlier Freedom of information Act of 2002. The primary objective was also to help citizens get faster service from government agencies, as they can now ask why is a certain application or a process being delayed; and mainly to fulfill the aim of a corruption-free India.

What is the RTI act?

Under the RTI Act, any citizen can seek information from any public or government authority (however, it should not pertain to national security and defense or some personal information) and the authority is liable to respond within a period of 30 days to the application.

Now, information disclosure in India is restricted by the Official Secrets Act of 1923 and various other special laws, but many of these have been relaxed in light of the RTI act. 

The RTI act also requires all public authorities to have their records computerized for the widespread relay, such that requests for information by the citizens are processed faster because of information categorization.

What Information can one seek under the RTI Act?

The RTI act allows any Indian citizen to seek answers from any Government authority. This could be even for things like a delayed IT refund, passport or a driving license, or details of an infrastructure or repairs project going on or completed.

Even knowing the status of an FIR or the funds allocated to various government schemes, MP, MLA, PM relief fund, etc. Students can even seek copies of answer sheets from their Universities with this act.

The power of RTI and its applications are limitless. The idea is to ask the Right Questions!

How to file an RTI Application?

1. For submitting an RTI application, visit the online RTI Portal and click on submit request option.

2. On clicking on submit request option ‘Guidelines for use of RTI ONLINE PORTAL’ screen will be displayed. This screen contains various guidelines for using RTI online portal. The citizen has to click on the checkbox ‘I have read and understood the above guidelines and then click on submit button.

3. Then Online RTI Request Form screen will be displayed. Ministry or Department for which the applicant wants to file an RTI can be selected
from Select Ministry/Department/Apex body dropdown.

4. Applicant will receive SMS alerts in case he/she provides a mobile number. The fields marked * are mandatory while the others are optional.

5. If a citizen belongs to the BPL category, he has to select the option ‘Yes’ in the ‘Is the applicant below poverty line?’ field and has to upload a BPL card certificate in the supporting document field. (No RTI fee is required to be paid by any citizen who is below the poverty line as per RTI Rules, 2012)

6. On submission of the application, a unique registration number would be issued, which may be referred by the applicant for any references in the future.

7. If a citizen belongs to the Non-BPL category, he has to select the option ‘No’ in the ‘Is the applicant below poverty line?’ field and has to make a payment of Rs 10 as prescribed in the RTI Rules, 2012.

8. ‘Text for RTI request application’ should be up to 3000 characters. If the text is more than 3000 characters, then the application can be uploaded in the supporting document field.

9. After filling in all the details in the form, click on the ‘make payment’ option.

10. On clicking the option, the Online Request Payment form will be displayed. The payment mode can be selected in this form, which can be; internet banking, ATM-cum-debit card, or credit card.

11. After clicking on the ‘Pay’ button, the applicant will be directed to the SBI payment gateway for payment. After completing the payment process, the applicant will be redirected back to RTI Online Portal.

12. The applicant will get an email and SMS alert on the submission of the application.

Note: Only alphabets A-Z a-z number 0-9 and special characters , . – _ ( ) / @ : & \ % are allowed in text for RTI request application.

The application filed through this web portal would reach electronically to the nodal officer of the concerned Ministry/Department, who would transmit the RTI application electronically to the concerned CPIO.

What do to if your RTI request is rejected?

There is a fundamental difference between RTI Request and RTI Appeal.

RTI Request is applying for the first time. The request is made by the citizen to one person (i.e. PIO) to provide information. This means that it involves only the citizen and PIO.

RTI Appeal is an appeal before a senior officer against the decision of the PIO. This means that here, a third person (i.e. Appellate Authority) comes between the citizen and the PIO.

An appeal is only filed when the citizen is not satisfied with the reply of PIO or PIO rejects the citizen’s request for information.

This means RTI request is application process while RTI appeal is appellate procedure against the decision on RTI application.

Steps for filing RTI Application First Appeal

1. For submitting the First appeal application, click on the ‘submit first appeal’ option. Upon clicking, the ‘guidelines for use of RTI online portal’ screen will be displayed. This screen contains various guidelines for using RTI online portal.

2. Citizen has to click on the checkbox ‘I have read and understood the above guidelines and then click on submit button.

3. Online RTI first appeal form screen will be displayed. The applicant has to enter the registration number, email ID, and security code in the form.

4. Upon clicking the submit button, the online RTI first appeal form will be displayed. The applicant can then select a reason for filing an appeal application from the ‘ground for appeal’ dropdown field.

5. Text for RTI first appeal application should be up to 3000 characters. If the text is more than 3000 characters, then the application can be uploaded in the supporting document field. (As per RTI Act, no fee has to be paid for the first appeal).

6. On submission of the application, a unique registration number would be issued, which may be referred by the applicant for any references in the future.

The application filed through this web portal would reach electronically to the nodal officer of the concerned Ministry/Department, who would transmit the RTI application electronically to the concerned appellate authority.

For more guides and other articles, check out the ITAT Order’s blog.

Income Tax Slab Rate for AY 2021-22 (Latest)

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Income Tax Slab Rate for AY 2021-22 (Latest)

Income tax payment for individuals and corporate entities is a mandatory requirement as per the Income Tax Act, 1961 if their annual income is above the minimum exemption limit.

However, taxpayers can also avail tax benefits under various sections of the Act. To reap these benefits, one must understand the income tax slab and applicable rates.

What is the Income Tax Slab?

In India, where individuals earn an income within a diverse range, levying a tax on all individuals at a specific rate would not be a fair policy.

The Act, therefore, segregates income ranges and levies tax at different rates as per the segregation. These groups are thus known as tax slabs. The slabs also vary based on age if the taxpayer is an individual and as per the classification of entities.

Income tax slabs are amended and revised each year during the Central Government’s Budget Session.

These amendments and revisions once proposed are approved by the Parliament and implemented as law.

Various Tax rates applicable are as follows:-

Income Tax Slab Rate for AY 2021-22 for Individuals opting for the old tax regime

Individual (resident or non-resident), who is of the age of fewer than 60 years on the last day of the relevant previous year:

Net income rangeIncome-Tax rate
Up to Rs. 2,50,000Nil
Rs. 2,50,000- Rs. 5,00,0005%
Rs. 5,00,000- Rs. 10,00,00020%
Above Rs. 10,00,00030%

Resident senior citizen, i.e., every individual, being a resident in India, who is of the age of 60 years or more but less than 80 years at any time during the previous year:

Net income rangeIncome-Tax rate
Up to Rs. 3,00,000Nil
Rs. 3,00,000 – Rs. 5,00,0005%
Rs. 5,00,000- Rs. 10,00,00020%
Above Rs. 10,00,00030%

Resident super senior citizen, i.e., every individual, being a resident in India, who is of the age of 80 years or more at any time during the previous year:

 Net income rangeIncome-Tax rate
Up to Rs. 5,00,000Nil
Rs. 5,00,000- Rs. 10,00,00020%
Above Rs. 10,00,00030%

Surcharge: – 

  • 10% of income tax where total income exceeds Rs. 50,00,000.
  • 15% of income tax where total income exceeds Rs. 1,00,00,000. 25% of income tax where total income exceeds Rs. 2,00,00,000.
  • 37% of income tax where total income exceeds Rs. 5,00,00,000.

Health and Education cess: – 4% of income tax and surcharge.

Note: A resident individual is entitled to a rebate under section 87A if his total income exceeds Rs. 5,00,000. The amount of rebate shall be 100% of income tax or Rs. 12,500, whichever is less.

Income Tax Rates For HUF/AOP/BOI/Any other Artificial Juridical Person under the old tax regime

Net income rangeIncome-Tax rate
Up to Rs. 2,50,000Nil
Rs. 2,50,000- Rs. 5,00,0005%
Rs. 5,00,000- Rs. 10,00,00020%
Above Rs. 10,00,00030%

Surcharge: –

  • 10% of income tax where total income exceeds Rs. 50,00,000.
  • 15% of income tax where total income exceeds Rs. 1,00,00,000.
  • 25% of income tax where total income exceeds Rs. 2,00,00,000.
  • 37% of income tax where total income exceeds Rs. 5,00,00,000.

Health and Education cess: – 4% of income tax and surcharge.

Income tax applicable to Individuals and HUF under new optional tax regime (Section 115BAC)

A new tax regime for individuals and HUF has been proposed by the Finance Bill, 2020 to tax the income of such assessees at lower tax rates if they agree to forego prescribed deductions and exemptions under the Income Tax Act.

Special provision for calculating the income of assessees opting for this section is prescribed under the said section.

Net income rangeAny Individual/ HUF
Up to Rs. 2,50,000Nil
From Rs 2,50,001 to Rs 5,00,0005%
From Rs 5,00,001 to Rs 7,50,00010%
From Rs 7,50,001 to Rs 10,00,00015%
From Rs 10,00,001 to Rs 12,50,00020%
From Rs 12,50,001 to Rs 15,00,00025%
Above Rs. 15,00,00030%

Surcharge: –

  • 10% of income tax where total income exceeds Rs. 50,00,000.
  • 15% of income tax where total income exceeds Rs. 1,00,00,000.
  • 25% of income tax where total income exceeds Rs. 2,00,00,000.
  • 37% of income tax where total income exceeds Rs. 5,00,00,000.

Health and Education cess: – 4% of income tax and surcharge.

Income Tax Rate for Partnership Firm:

A partnership firm (including LLP) is taxable at 30%.

Surcharge:- 12% of tax where total income exceeds Rs. 1 crore.

Health and Education cess: 4% of income tax plus surcharge.

Tax rates for domestic companies:

ParticularsTax rates
Company opting for section 115BA*25%
A company having turnover or gross receipt of up to Rs. 400 crore in the previous year 2017-18*30%
Company opting for section 115BAA**22%
Company opting for section 115BAB**15%
Any other company*30%
MAT***15%

Tax rates for foreign companies:

The tax rate for foreign companies is 40%.

CompanyNet income is between Rs. 1Cr. – 10 Cr.Net income exceeds Rs. 10Cr.
Domestic company7%12%
Foreign company2%5%

Health and Education cess: 4% of income tax plus surcharge.

Income Tax Slab Rate for Co-operative Society:

Income tax rates under the old regime: –

Net income rangeIncome-Tax rate
Up to Rs. 10,00010%
Rs. 10,000 to Rs. 20,00020%
Above Rs. 20,00030%
  • Surcharge:- 12% of tax where total income exceeds Rs. 1 crore.
  • Health and Education cess: 4% of income tax plus surcharge.

Income tax applicable to co-operative society under new optional tax regime (Section 115BAC): –

The income of a co-operative society under the new regime is taxable at a flat rate of 22% provided it forgoes specified deductions and exemptions and computes its income according to the provisions of the newly inserted section.

  • Surcharge:- 10% of income tax.
  • Health and Education cess: 4% of income tax plus surcharge.

Income Tax Slab Rate for Local Authority:

A local authority is taxable at 30%.

  • Surcharge:- 12% of tax where total income exceeds Rs. 1 crore.
  • Health and Education cess: 4% of income tax plus surcharge.

Income tax return filing is mandatory if the income falls under taxable slabs. So, make sure to keep a check on the due dates and file your income tax returns to avoid penalties.

Disclaimer: This information has been taken from the official site of the income tact department. Tax laws are subject to amendments made thereto from time to time. Please consult a professional tax advisor before acting on the above.

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