TAX RATES
 
COMPANIES -For the Assessment Year 2009-10 the following rates of income-tax are applicable:
 
 
Company
Rate of income-tax (per cent)
In the case of a domestic company
30
In the case of a foreign company
 
      royalty received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government
50
      other income
50
 
Surcharge -Surcharge is applicable at the rates given below-
 
 
If net income does not exceed Rs. 1 crore
If net income exceeds Rs. 1 crore
Domestic company
Nil
10%*
Foreign company
Nil
2.5%*
 
* It is 2.5% or 10% of income-tax(after rebate under section 88E).
 
Marginal relief -In the case of a company having a net income exceeding Rs. 1 crore, the net amount payable as income-tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
 
Education cess -It is 2 per cent of income-tax (after rebate under section 88E) and surcharge.
 
Secondary and highter education cess -It is 1 per cent of income-tax (i.e., after rebate under section 88E) and surcharge.
 
MINIMUM ALTERNATE TAX -For the assessment year 2009-10, the following rates of minimum alternate tax shall be applicable.(as a % of book profit)
 
 
 
 
 
 
 
 
If book profit does not exceed Rs. 1 crore
If book profit exceeds Rs. 1 crore
 
IT
SC
EC
SHEC
Total
IT
SC
EC
SHEC
Total
Domestic company
10
-
0.2
0.1
10.30
10
1
0.22
0.11
11.33
Foreign company
10
-
0.2
0.1
10.30
10
0.25
0.205
0.1025
10.5575
 
Note -If book profit of a company for the assessment year 2009-10 exceeds Rs. 1 crore, the minimum alternate tax cannot exceed the following
Rs. 10 lakh + Book profit -Rs. 1 crore + EC + SHEC