Final Tax Regime and Minimum Tax Chapter- 22
Less: tax deducted at source (u/s 153) 260 , 000
Balance tax - -
Example:
Following information relates of Mr. B. He is doing the business of manufacturing of garments for tax
year 20 23.
Rs.
Sales 6,500,000
Expenses 6,050,000
Net Profit 450,000
Note: There was no tax deduction under section 153.
Solution:
Computation of tax liability: Rs.
Tax deductible u/s 153 (6,500,000 x 4 %) 260 , 000
Total tax liability 260 , 000
Less: tax deducted at source - _
Balance tax payable 260 , 000
Exports [Section 154(4)]:
Tax deductible under this section shall be final tax as per the following rates:
Section (^) payment/transacNature of tion Tax rate Exemption (^) paymentStatus Deduction/collecting authority
154(1)
(a) Direct export:
Export proceeds
realization
1% of export
proceed received
Nil
Final
discharge
Authorized dealer in
foreign exchange
154(3A)
Export of the goods by
an industrial undertaking
located in EPZ
1% at the time of
export of goods
without realization
Nil
Final
discharge
Export processing
Zones Authority
154(3C)
Clearing of the goods
exported
1% at the time of
export of goods
without realization
Nil
Final
discharge
Collector of customs
154(3) (b) Indirect export:
Realization of proceeds of
goods sold to an exporter
under an inland back -to-
back letter of credit or
standard purchase order
1% of export
proceeds received
Nil Final
discharge
Banking Company
154(3B) (^) Payment for a firm
contract to an indirect
export
1% of the export
proceeds realized
Nil Final
discharge
Direct export and
export house
registered under DTRE
Rules 2001
154(2) (c) Foreign indenting
commission:
Omitted by Finance Act,
2022 and transposed u/s
154A
- Opting out from Final Tax Regime [Section 154(5)]