Company Act 2013 introduced us new concept of single owner company that is One Person Company. As name presents its company of one person. Its similar to private Limited company however in compliances there is relief for OPC Company. OPC is not recognized in Income Tax Act 1961. For taxation purpose One person company is treaded similar to Private Limited Company. Each OPC company registered in India need to file income tax return. OPC income tax filing due date for FY 2021-22 is 30 September 2022. OPC ITR filing is mandatory even though OPC have no profit or no transactions. Income Tax Rate for One Person company is 25% . Below is details of Income Tax rate for One person company. Over and above income tax surcharge & Education cess is applicable.
Income Tax Rate OPC Company FY 2021-22 and 2022-23
The special Income-tax rates applicable in case of domestic One Person Company as follows:
| Domestic OPC Company | Tax Rate |
| Where it opted for section 115BA | 25% |
| Where it opted for Section 115BAA 22% | 22% |
| Where it opted for Section 115BAB | 15% |
MAT On One Person Company
The Concept of One Person Company is there in Company Act 2013. However in Income Tax there is No Concept of OPC. MAT or Minimum Alternate Tax is a provision in Direct tax laws is applicable for OPC. MAT is calculated as 15% of the book profit One Person Company.On MAT surcharge and cess are applicable. As per Section 115JB, OPC Company are required to pay corporate tax at least equal to the higher of the following:
- Normal Tax Liability: Calculated as per the normal provisions of the Income Tax Act Or
- Minimum Alternate Tax (MAT): For FY 2021-22, tax payable is computed at 15%
| MVAT Income Tax on OPC | Tax Rate |
| MAT | 18.5% |
Conclusion
As Like Private Limited Company, Income Tax Rate is applicable for OPC Company in India. For Income tax purpose legal status Private Limited & OPC is same. Under Section 139(1) OPC Company also required to file annual Income Tax Return.
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