Income Tax On Private Limited Company LLP for FY 2018-19 AY 2019-20

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In India, Private Limited Companies and LLP are most preferred business modes. In Private Limited falls under two different categories one is a domestic company like in which there is no forging investments and another is Foreign Company means a company in which foreign investments are  involved. Each company in India need to file its Income Tax return by the end of September, like for FY 2018-19 , return need to be filed by  30 September 2019. The filing of Income tax return is mandatory, means irrespective of turnover , profit & loss ITR need to be filed and ROC compliances need to be carried out.

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Income Tax Rate Private Limited Companies  FY 2018-19 AY 2019-20

Domestic Company

Income Slab	Tax Rate
Company Turnover  < 250 Cr	25 %
Company Turnover > 250 Cr	30%
Cess:  4 % on total of income tax + surcharge.

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Income Tax Rate Private Limited Companies  FY 2018-19 AY 2019-20

Foreign Company

Income Slab	Tax Rate
Foreign Company	40%
Cess:  4 % on total of income tax + surcharge.

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MAT On Private Limited Company

MVAT Income Tax	Tax Rate
MAT	18.5%

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Income Tax Rate Limited Liability Partnership ( LLP)  FY 2018-19 AY 2019-20

Under Income Tax Act , LLP are treated in a similar manner as Partnership firms, On LLP Income Tax is levied at rate of 30% flat. Like in case of individual the benefits of Income tax slabs such as 3 Lac , 5Lac is not available for tax computation of Limited Liability Partnership firm.  Whereas interest on capital and remuneration paid to partners is allowed as deduction. However same need to be calculated as per the provisions of Section 40(b) of Income Tax Act 1961.

Income Slab	Tax Rate	Effect in Budget
Income Tax Rate for LLP	30%	No Changes
Cess: 4 % on total of income tax + surcharge.

 

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