LLP taxes reduced to 25% too?

#1

budget said small corporates hv to pay only 25% from now on. does that include partnership firms and LLPs too?

#2

@MohitBangalore
Can you try to find out.

#3

A partnership firm and an LLP are taxed the same way. They aren’t considered corporates for the purpose of income tax. So, the 25% tax slab is not applicable for firms. They will continue to be charged at the 30% rate.

Excerpt from the Finance Bill: Paragraph C of Part I of the First Schedule

In the case of every firm,—

Rate of income-tax
On the whole of the total income 30 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, in the case of every firm, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:
Provided that in the case of every firm mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

#4

But honestly isn’t that just way too much, what do you really think about that ? I thought that small improvement like 25% instead of 30% could boost many businesses and it’s really not, I am quite depressed right now, i still hope for some changes.