2. PARTICULAR CONDITION COMPANY PARTNERSHI
P
Basic tax
rate
15% 30%
Surcharge
Taxable income upto
1cr 10%
0%
Taxable income more
than 1 Cr
12%
Basic tax +
Surcharge
Taxable income upto
1cr
16.5%
30%
Taxable income > 1
Cr
33.6%
Add – Cess 4% 4%
Final
Effective tax
Taxable income upto
31.2%
EFFECTIVE TAX RATES OF COMPANY & PARTNERSHIP
FIRM
3. TAXABLE INCOME BASIC TAX
RATE
NEW REGIME
0 to 3,00,000 0%
3,00,000 to
6,00,000
5%
6,00,000 to
9,00,000
10%
9,00,000 to
12,00,000
15%
12,00,000 to
15,00,000
20%
Above 15,00,000 30%
EFFECTIVE TAX RATES OF INDIVIDUAL (SOLE
PROPRIETOR)
TAXABLE INCOME BASIC TAX
RATE
OLD REGIME
0 to 2,50,000 0%
2,50,000 to
5,00,000
5%
5,00,000 to
10,00,000
20%
Above 10,00,000 30%
SURCHARGE
TAXABLE INCOME RATE
Upto 50,00,000 Nil
50,00,000 to
1,00,00,000
10%
1,00,00,000 to
2,00,00,000
15%
Above 2,00,00,000 25%
Cess of 4% to be levied on (Tax + Surcharge)
4. CONDITIONS FOR CONVERSION OF PARTNERSHIP
FIRM / SOLE PROPRIETORSHIP INTO COMPANY
•Transfer of a capital asset or intangible assets to the company would be
treated as tax exempt subject to conditions
•Carry forward of losses and accumulated depreciation not available to
successor business entity
•All the assets and liabilities of the business should be transferred to the
company
•Consideration should be solely in the form of shares of the company
•Shares should be allocated to partners (in case of firm) in the ratio of their
capital
•All the partners (in case of firm) immediately prior to succession should
become shareholders of the company
•The aggregate shareholding of partners/sole proprietor is not less than
50% of the total voting power for 5 consecutive years from the date of
succession
5. EFFECTIVE TAX RATE ASSUMING
TAXABLE INCOME = RS. 1 CRORE
Particular Pvt Ltd
Company
Partnership
Firm
Sole
Proprietor
new regime
Sole
Proprietor
old Regime
Basic Tax 15% 30% 27%
(effective)
28.125%
(effective)
Surcharge 10% 0% 10% 10%
Tax +
Surcharge
16.5% 30% 29.7% 30.94%
Cess 4% 4% 4% 4%
Effective tax
rate
17.16% 31.2% 30.888% 32.1776%
