Sole trader / Proprietor or Business Individual
The business individual is taxed for the profits only unless turnover exceed 10 million rupees. In case exceed 10 million rupees, 1.25% of total turnover is payable.
Form of Taxation: Slab rates are applied.
Tax Return Filing: For this type, filing of annual income tax returns is a requirement.
Partnership Firm
The partnership firm is taxed for the profits only unless turnover exceed 10 million rupees. In case exceed 10 million rupees, 1.25% of total turnover is payable. While partners are not taxed separately.
Form of Taxation: Slab rates are applied.
Tax Return Filing: For this type, filing of annual income tax returns is a requirement.
Limited Liability Partnership
The partnership firm is taxed for the profits only unless turnover exceed 10 million rupees. In case exceed 10 million rupees, 1.25% of total turnover is payable. While partners are not taxed separately.
Form of Taxation: Slab rates are applied.
Tax Return Filing: For this type, filing of annual income tax returns is a requirement.
Private Limited Company
The company is taxed at higher of
- a) taxable income @ below given rates,
- b) turnover @ 1.25%
- c) profits @ 17% Shareholders are taxed at 15% on dividends.
Form of Taxation/Rates: Small Company: 25%. Other than small company: 29%
Tax Return Filing: For this type, filing of annual income tax returns is a requirement.
Public Limited Company
The company is taxed at higher of
- a) taxable income @ 30%,
- b) turnover @ 1.25%
- c) profits @ 17% Shareholders are taxed at 15% on dividends.
Form of Taxation: 0.29
Tax Return Filing: For this type, filing of annual income tax returns is a requirement.
Not for Profit Organization
If approved than zero, otherwise taxation of private limited company will be applicable.
Form of Taxation: Exempt if approved by tax department
Tax Return Filing: For this type, filing of annual income tax returns is a requirement.
Liaison / Branch Office
No tax is applicable.
Form of Taxation: Not applicable as commercial activity is not allowed
Tax Return Filing: For this type, filing of annual income tax returns is NOT a requirement.
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