Income Tax Rate For One Person Company FY 2020-21

Income Tax Rate For One Person Company FY 2020-21

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 2019-20 is 30 September 2020. 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.

Income Tax Rate OPC 

Domestic OPC Company Turnover < Rs. 400 Cr

Net Income Slab (Gross Taxable Income – deductions) Income Tax Rate Surcharge  Health & Education Cess  Rebate u/s 87A  (FY 2019-20)
Upto 1 crore 25% Nil 4% Nil
Above 1 crore but upto 10 crore 25,00,000+ 25% 7% 4% Nil
Above 10 crore 2,50,00,000+ 25% 12% 4% Nil

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