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 company 30 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 2015-16 does not exceed Rs. 50 crore 25 per cent of the total income

The amount of income-tax computed shall, be increased by a surcharge,-

o (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
o (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.

Are there any special provisions in case of carry forward and set off of loss in case of a
company in which public are not substantially interested?

Are there any special provisions in case of carry forward and set off of loss in case of a
company in which public are not substantially interested?

o X
How to determine the residential status of a company?
o X
Can branches of companies/banks have separate TANs?

Can branches of companies/banks have separate TANs?

o X
In case of change in the constitution of business, can the loss be carried forward by the
reconstituted entity?

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 company 30 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 2015-16 does not exceed Rs. 50 crore 25 per cent of the total income

The amount of income-tax computed shall, be increased by a surcharge,-

o (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
o (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.

Are there any special provisions in case of carry forward and set off of loss in case of a
company in which public are not substantially interested?

Are there any special provisions in case of carry forward and set off of loss in case of a
company in which public are not substantially interested?

o X
How to determine the residential status of a company?
o X
Can branches of companies/banks have separate TANs?

Can branches of companies/banks have separate TANs?

o X
In case of change in the constitution of business, can the loss be carried forward by the
reconstituted entity?