Business Taxes on Pvt Ltd or Sole Proprietorship

Here i have 2 question for Taxable Income..

1) Sole Prorietorship

Example: When i get total income from my client Rs: 1,00,000/- in which i am paying Rs: 85,000/- to a vendor.

Rs: 1,00,000 is taxable or only Profit Rs: 15,000/- ?

2) Pvt Ltd Company

When i have registered Corporation in India.

My company only profitable income is taxable or total income received from the client is taxable?

I appreciate your response.. I really need to now all these things for new company.


asked Jun 22 '11 at 12:43 by malik 1111


1) In case of Sole proprietorship the profit will be include in his/her taxable income under the head income from business and profession and individual income tax slabs will applicable.

2) In case of company only profit will be taxable @ 30% + surcharges+Cess

answered Jun 22 '11 at 15:43 by sagar 4012


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Asked: Jun 22 '11 at 12:43

Seen: 1,141 times

Last updated: Jun 23 '11 at 15:23