Renuka Jain

Suggestive Direct Tax Propositions for Budget 2021 The present applicable tax rate in case of domestic companies with turnover up to Rs. 400 cr is 25%. Option to opt for Lower tax rates of 22% in case of certain domestic companies is available u/s 115BAA. Further, option to opt for even lesser tax rates of 15% is available for certain domestic manufacturing companies in terms of Sec 115BAB. Whereas the applicable rate of tax in case of partnership firms and Limited Liability Partnerships (LLPs) is 30%. This creates huge tax disparity. It is understandable that in order to encourage the organised sector, the government has offered lower tax rates for companies.   But even on that pretext the tax rates are really partial towards LLPs which are also duly registered with MCA, follow various compliance requirements including filing of Annual Return and Statement of accounts with ROC, as they fail to enjoy the advantage of lower tax rates. All the information of LLPs is duly available on...