AMN Pvt. Ltd. was incorporated in the AY 2021-2022 in the state of West Bengal. It has been engaged in the manufacturing of medicines. Since incorporation, the Company has opted concessional tax regime under section 115B

CS Professional · Advanced Tax Laws · PYQS · December 2023
AMN Pvt. Ltd. was incorporated in the AY 2021-2022 in the state of West Bengal. It has been engaged in the manufacturing of medicines. Since incorporation, the Company has opted concessional tax regime under section 115BAA of the Income Tax Act, 1961. During the financial year 2022-23, total income of the company is of ₹60 lakh. The company has satisfied all the conditions during the previous to be eligible under concessional tax regime. Compute the tax liability of the company for the assessment year 2023-24.

Answer & Explanation:

Computation of Tax Liability of AMN Pvt. Ltd. for AY 2023-24 Particulars Amount (₹) Total Income of the Company 60,00,000 Applicable Tax Rate u/s 115BAA 22% Tax Payable (60,00,000 * 22%) 13,20,000 Add: Surcharge @ 10% (13,20,000 * 10%) 1,32,000 Total 14,52,000 Add: Health and Education Cess @ 4% (14,52,000 * 4%) 58,080 Total Tax Liability 15,10,080

Topics: Income Tax

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