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