Income tax

Requirement by law .Any person who carries on any trade, business, profession or vocation, including any company which has been entered in to any agreement with the Board of Investment, shall obtain a registration number within one year of such Registration or incorporation or commencement of the activity as the case may be, from the CGIR and furnish Return of income before 30th September following the end of each year of assessment. Further Tax Registration certificate (TN) shall be attached to your Annual Return which furnishes to the Registrar of Companies in every year

Rates of Income Tax

Resident / Non – Resident Companies

  • Taxable Income is less than Rs. 5,000,000.00 (5m) – Rate 15%
  • Any Company which becomes quoted public company (first year of assessment) and for each year of assessment within the period of 4 years immediate succeeding that first year of assessment, for which the taxable income exceeds Rs. 5,000,000.00 - Rate 33 1/3%
  • Taxable income more than Rs. 5,000,000.00 (5m) - Rate 35%
  • Income tax concession rates are applicable for different type of business and income tax holidays too are applicable to certain type of business.

Year of Assessment 2005/2006

Resident Companies

  • If taxable income < Rs. 5m - 20%
  • If taxable Income > Rs. 5m -
  • Quoted Public Co. – Shareholders > 300 - 30%
  • Other Company -32.5%

Non – Residents Companies

  • If taxable income < Rs. 5m - 20%
  • If taxable Income > Rs. 5m - 30%