Domestic Company

Meaning​

As per Section 2(22A)​, "domestic company" means an Indian company, or any other company which, in respect of its income liable to tax under this Act, has made the prescribed arrangements for the declaration and payment, within India, of the dividends (including dividends on preference shares) payable out of such income

Tax Rates

A. Income-tax

  • In the case of a domestic company30 per cent of the total income;
  • • In the case of a domestic company where its total turnover or the gross receipt in the previous year 2014-15 does not exceed Rs. 5 crore29 per cent of the total income ​
The amount of income-tax computed shall, be increased by a surcharge,-
    • (a) in case company having a total income exceeding one crore rupees, but not exceeding ten crore rupees, at the rate of seven per cent of such income-tax; and
    • (b) in case company having a total income exceeding ten crore rupees, at the rate of twelve per cent of such income-tax;
Provided that in the case of every company having a total income exceeding one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees :
Provided further that in the case of every company having a total income exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

Education Cess

The amount of income-tax as increased by the applicable surcharge, shall be further increased by "Education Cess on income-tax", calculated at the rate of two per cent of such income-tax and surcharge

Secondary and Higher Education Cess

The amount of income-tax as increased by the applicable surcharge, shall be further increased by " Secondary and Higher Education Cess on income-tax ", calculated at the rate of one per cent of such income-tax and surcharge

B. Minimum Alternate Tax

A company shall be liable to pay MAT @ 18.5% of book profit (plus surchage and education cess as applicable) where the normal tax liability of the company is less than 18.5% of book profit.

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