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Corporate Tax Planning for Companies

This document provides steps for computing the total income of a domestic company for tax purposes. Step 1 is to compute taxable income from different sources like business, capital gains, other sources, and house property. Step 2 is to compute business income using a format that involves adding back expenses disallowed for tax purposes and deducting incomes not taxable, along with allowable expenses and claims, to arrive at the adjusted aggregate business income value.

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prashant chaurasia
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107 views1 page

Corporate Tax Planning for Companies

This document provides steps for computing the total income of a domestic company for tax purposes. Step 1 is to compute taxable income from different sources like business, capital gains, other sources, and house property. Step 2 is to compute business income using a format that involves adding back expenses disallowed for tax purposes and deducting incomes not taxable, along with allowable expenses and claims, to arrive at the adjusted aggregate business income value.

Uploaded by

prashant chaurasia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Corporate Tax Planning

Computation of Total Income of a Domestic Company which is Widely held


Step I Compute Taxable Income of the Company Head-wise like Income from Business, Income
From Capital Gains, Income from Other Sources and Income from House Property.

Step-II Compute Income from Business by using following Format

Computation of Income of ABC Ltd. from Business for the Assessment Year 2020-21

Rs.

Net Profit as per Statement of Profit &Loss


Add{ Expenses Disallowed( which have already been Debited in
Statement of Profit & Loss -
Income Tax Paid
Amount transferred to any Reserve like Reserve for Bad Debts
Proposed Dividend
Extra Depreciation
Capital Expenditure
Capital Loss Non- Business Expense like Charity, Donation etc.
Other Disallowed Expenses
Less: Incomes not Chargeable under this Head: ( If already
Credited to Statement of P/L such as-
Profit on Sale of Assets
Interest on Investments
Dividend Received
Rent Received
Less; Expenses & other Claims Allowed
Unabsorbed Loss of previous Years
Amount withdrawn from Reserve
Unabsorbed Depreciation of previous Years
Expenses admissible but not charged in P&L
Business Income (Adjusted Aggregate Value)

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