What are the taxation for a One Person Company?
Company Act 2013 introduced us new concept of single owner company that is One Person Company. As name presents its company of one person. Its similar to private Limited company however in compliances there is relief for OPC Company. OPC is not recognized in Income Tax Act 1961. For taxation purpose One person company is treaded similar to Private Limited Company. Each OPC company registered in India need to file income tax return. OPC income tax filing due date for FY 2020-21 is 30 September 2021. OPC ITR filing is mandatory even though OPC have no profit or no transactions. Income Tax Rate for One Person company is 25% . Below is details of Income Tax rate for One person company. Over and above income tax surcharge & Education cess is applicable.
MAT On One Person Company
The Concept of One Person Company is there in Company Act 2013. However in Income Tax there is No Concept of OPC. MAT or Minimum Alternate Tax is a provision in Direct tax laws is applicable for OPC. MAT is calculated as 15% of the book profit One Person Company. On MAT surcharge and cess are applicable. As per Section 115JB.
Net Income Slab (Gross Taxable Income – deductions) | Income Tax Rate | Surcharge | Health & Education Cess | Rebate u/s 87A |
Upto 1 Crore | 25% | Nil | 4% | Nil |
Above 1 crore but upto 10 crore | 25,00,000 + 25% | 7% | 4% | Nil |
Above 10 Crore | 25,00,000 + 25% | 12% | 4% | Nil |
Created & Posted by (Anuj)
CA-Article at TAXAJ
TAXAJ is a consortium of CA, CS, Advocates & Professionals from specific fields to provide you a One Stop Solution for all your Business, Financial, Taxation & Legal Matters under One Roof. Some of them are: Launch Your Start-Up Company/Business, Trademark & Brand Registration, Digital Marketing, E-Stamp Paper Online, Closure of Business, Legal Services, Payroll Services, etc. For any further queries related to this or anything else visit TAXAJ
TAXAJ Corporate Services LLP
Address: 1/11, 1st Floor, Sulahkul Vihar, Old Palam Road, Dwarka, Delhi-110078
Related Articles
Definition of one person company & its features
The Companies Act, 2013 completely revolutionized corporate laws in India by introducing several new concepts that did not exist previously. On such game-changer was the introduction of One Person Company concept. This led to the recognition of a ...
One person company turnover limit
One Person Company Turnover Limit One Person company is new concept of Companies Act 2013. Company get registered with one person. Its self employment and single ownership. Only a natural person who is citizen of India can apply for One person ...
Comparison Between One Person Company vs LLP
What is the meaning of One Person Company and a Limited Liability Partnership? One Person Company (OPC) means a Company that has only one person as to its member. An OPC is effectively a company that has only one shareholder as its member. ...
conversion of private company into OPC
Conversion of Private Company into OPC: Step by Step Procedure One Person Company is a new business concept introduced under the Companies Act, 2013. As the name suggests, One Person Company can be registered with a single individual only. On the ...
Can you transfer shares from one person to another
Investors tend to open different Demat accounts over time, making it increasingly difficult to keep track of these accounts separately. Consolidating shareholdings into a single Demat account helps investors take a single look at all their stocks and ...