Hi y’all. Let’s say, at the end of this F.Y., there’ll be 10 lakhs left in company’s bank account, after all the expenses. DO i have to pay 30% IT on that 10 lakhs? Because, there’ll be some more expenses in the coming year like salaries, purchases, R&D investments etc. and i’m not sure of the cash inflow, how do i manage that uncertainty? Is there a way to carry forward some amount to the next FY without paying tax? If so, what’s the best way to do it? Thanks in advance.
@Bharti_Vasvani if you can help here.
Corporates have to pay tax at 25% flat on the net profit earned in a year and not on the bank balance as on 31/03. Financials are prepared every year so taxes on them can not be deferred to future years. In the upcoming year if you have less/ no profits because of expenses incurred in that year then you get an option to carry forward such losses and set them off against gains in the upcoming years.
Hope this helps!