Taxation in India

Only available on StudyMode
  • Download(s) : 123
  • Published : October 11, 2012
Open Document
Text Preview
A. Part I Tax:
Federal Basic Tax 38% x TI
(-) Abatement 10% x Canadian TI
(-) SBD (CCPC): 17% of Least of
▪ ABI (Canadian, CY, Net of Loss)
▪ Adjusted TI
▪ Business Limit (500,000)
(+) Additional Refundable Tax (CCPC)
20/3% of Least of - AII
- SBDQ
(-) GRR: 11.5% (TI – SBDQ – AII – MPPDQ)
(-) MPPD: 11.5% of Least of -
▪ M&PP – SBDQ
▪ TI – SBDQ - AII
(-) Tax Credits:
▪ Foreign Tax Credit (Tax paid abroad)
▪ Fed. Political Tax Credit
▪ Investment Tax Credit
B. (+) Part IV Tax: Div. Received from -
Non-Connected (1/3 of Div Received)
Connected (Div Refund of Conn. Co x Ownership %)
C. (-) Dividend Refund: Lesser of –
▪ 1/3 of Div Paid in the Yr
▪ Balance of RDTOH

|Income |Federal Tax rate |Provincial Rate | |41,544 or Less |15% |10% | |Over 41,544 |6,232 + 22% over |4,154 + 12% | |Over 83,088 |15,372 + 26% |9,139 + 15% | |Over 128,800 |27,257 + 29% |15,996 + 17% |

-----------------------
Adjusted TI = TI - (Foreign Non-Bus (Investment) Tax Credit x 10/3) – (3.77 x Foreign Bus Income Tax Credit) Bus. Limit: Before Reduction Limit (A e.g. 500,000) – [A x 0.225% (Capital employed Preceding Yr – $10 ml) / 11250]

AII = Net Taxable Capital Gain for the year
(-) Net Capital Loss deducted in Div C
(-) Dividends deducted in Div C
(-) Losses from Property (Cad and Foreign)
(+) Income from Property (Non-Bus, Cad and Foreign)
(e.g. Rent, Dividend, Royalty, Interest)

Political Donation: ≤400 = 75%, Over 400 but ≤ 750 = 300+ 50% of over 400, Over 750 but ≤1275 = 475+ 100/3% of Over 750, Over 1275 = 650 ITC: Child Care Space 25% (Limit 10,000 per space), Apprenticeship 10% (limit 2000 per apprentice), Qualified SR&ED 20%, Qualified Property 10% (Outside...
tracking img