Question 1

What form does a private limited company file and what is the due date?

Accepted Answer

ITR-6 — mandatory for all companies other than Section 8 companies. Due date is 31 October of the assessment year if subject to tax audit under Section 44AB (turnover > ₹1 crore cash / ₹10 crore digital), or 30 November if a transfer pricing report (Form 3CEB) is also required.

Question 2

What is MAT and when does it apply?

Accepted Answer

Minimum Alternate Tax under Section 115JB applies when regular tax liability falls below 15% of book profit. The company pays MAT at 15% (plus surcharge and cess) on book profits computed under Schedule II of the Companies Act. MAT credit can be carried forward for 15 years and set off against regular tax in future years.

Question 3

What is the corporate tax rate under Section 115BAA?

Accepted Answer

Domestic companies can opt for the Section 115BAA concessional rate — 22% base plus 10% surcharge plus 4% cess, giving an effective rate of 25.168%. This election is irrevocable and requires forgoing certain deductions and incentives. New manufacturing companies incorporated after 1 October 2019 can opt for 15% under Section 115BAB.

Question 4

What expenses are commonly disallowed in company income computation?

Accepted Answer

Section 40(a)(ia) disallows 30% of payments where TDS was not deducted; Section 40A(2) disallows above-market payments to related parties; Section 43B disallows PF/ESIC/bonus paid after the ITR due date; Section 14A disallows expenses relating to exempt income. These are audited in detail under Form 3CD.

Question 5

Does a private limited company need to pay advance tax?

Accepted Answer

Yes — Section 208 requires advance tax if estimated tax liability exceeds ₹10,000. Four instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December, 100% by 15 March. Shortfall attracts interest under Section 234B (1%/month on unpaid tax) and Section 234C (1%/month on instalment shortfalls).

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