Private Ltd company
Private Ltd company and income tax are two types of taxes that a private limited company may be require to pay, and they have some differences:
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Pvt Ltd Company
Pvt Ltd Company is a tax on the profits earn by a private limited company is paid on the net profits of the company after deducting allowable business expenses, depreciation, and other deductions. Corporate Tax is a form of direct taxation that is impose on the profits earn by corporate entities from their business activities. The tax is calculate as a percentage of the company’s net income, and the applicable rate is determine by the regulations outline in the Income Tax Act of 1961.
2. Income tax
Income tax is a tax on the income earn by individuals or entities, including private limited companies. In the case of a private limited company, income tax is levy on the income earn by the company’s directors and employees as salaries and on other sources of income, such as interest income or rental income. Income tax is calculate on the total income earn by the individual or entity, and the tax rate depends on the income level and the applicable tax slabs.
In summary, the main difference between and income tax for a private limited company is that corporate tax is a tax on the profits earn by the company, while income tax is a tax on the income earn by the directors and employees of the company.
To visit https://www.incometax.gov.in
