Chennai Corporation plans to revise company tax by three times
The companies' investment with less than a lakh earlier paid Rs 100 as company tax for half year, now it has increased to Rs 300.
Greater Chennai Corporation (File)
CHENNAI: After revising property tax, the Chennai Corporation has decided to increase company tax by three times. The new rates will be implemented for the firms / companies from the second half of the current fiscal year 2023 – 2024.
The companies' investment with less than a lakh earlier paid Rs 100 as company tax for half year, now it has increased to Rs 300.
The investment Rs 1 lakh to Rs 1.99 lakh and Rs 2 lakh to Rs 2.99 lakh should pay Rs 600 and Rs 900 respectively. Firms with more than 10 lakh investment earlier paid Rs 1000 and would soon be charged Rs 3000 for once in six months.
The head office of which is not in Chennai corporation limit and shows that its gross income received in or from the city is liable for company tax.
The companies' profit that has exceeded Rs 20,000 shall pay per half year of Rs 300 together with a sum calculated at the rate of Rs 75 for every Rs 5,000 income.
The maximum for a firm located in Chennai with headquarters elsewhere will pay a maximum half-yearly tax of 3,000 rupees, read a notification issued by Chennai Corporation commissioner J Radhakrishnan.
T Srinivasan, general secretary of Chennai Corporation Red Flag Union said, "The civic body did not revise the company tax due to COVID pandemic. Already many companies are yet to pay tax, and the authorities should ensure to collect company tax with penalty imposed. However, though the corporation collects company tax and property taxes, there is no adequate benefits for public and the companies."