taxation way in propratorship business & pvt ltd company

Querist : Anonymous (Querist) 27 April 2010 This query is : Resolved
i)tax way for propratorship business
ii)tax way for pvt ltd company
iii)which is better for broking firm propratorship or pvt ltd company

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Raj Kumar Makkad (Expert) 27 April 2010
Proprietorship business is an individual self business so proprietor is liable for the tax like an individual whereas specific taxation provisions are mentioned for private limited companies.

what do you mean by "broking"?

A V Vishal (Expert) 27 April 2010
PERSONAL TAX RATES

A V Vishal (Expert) 27 April 2010
In the case of domestic company in which the public are substantially interested (Pvt Limited Co) @ 30%

Surcharge (on income tax minus rebate u/s 80E, if any)

In case of Domestic Company :

For asst. Year 2010-11 @ 10% of income tax, only if total income exceeds Rs. 1 Crore.

Education Cess : 2% on the amount of income tax and surcharge.

Secondary and Higher Education Cess (w.e.f astt. Year 2008-09)

1% on the amount of income tax and surcharge.

Vineet (Expert) 29 April 2010
The formation of business as propreitorship or Pvt Ltd Company, does not solely depends upon Tax planning but other business considerations also such as volume of business, detatchment of individual from the business, cocept of perpetuity etc. For certain businesses, the authorities themselves insist on a certain kind of business structure and as I understand the stock exchanges today have asked all their members to corporatise.

soumitra basu (Expert) 03 May 2010
I agree with Mr Vineet

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