Taxation in India

A. Part I Tax:
Federal Basic Tax 38% x TI
(-) Abatement 10% x Canadian TI
(-) SBD (CCPC): 17% of Least of ▪ ABI (Canadian, CY, Net of Loss) ▪ Adjusted TI ▪ Business Limit (500,000)
(+) Additional Refundable Tax (CCPC) 20/3% of Least of - AII - SBDQ
(-) GRR: 11.5% (TI – SBDQ – AII – MPPDQ)
(-) MPPD: 11.5% of Least of - ▪ M&PP – SBDQ ▪ TI – SBDQ - AII
(-) Tax Credits: ▪ Foreign Tax Credit (Tax paid abroad) ▪ Fed. Political Tax Credit ▪ Investment Tax Credit
B. (+) Part IV Tax: Div. Received from -
Non-Connected (1/3 of Div Received)
Connected (Div Refund of Conn. Co x Ownership %)
C. (-) Dividend Refund: Lesser of – ▪ 1/3 of Div Paid in the Yr ▪ Balance of RDTOH

|Income |Federal Tax rate |Provincial Rate |
|41,544 or Less |15% |10% |
|Over 41,544 |6,232 + 22% over |4,154 + 12% |
|Over 83,088 |15,372 + 26% |9,139 + 15% |
|Over 128,800 |27,257 + 29% |15,996 + 17% |

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Adjusted TI = TI - (Foreign Non-Bus (Investment) Tax Credit x 10/3) – (3.77 x Foreign Bus Income Tax Credit)
Bus. Limit: Before Reduction Limit (A e.g. 500,000) – [A x 0.225% (Capital employed Preceding Yr – $10 ml) / 11250]

AII = Net Taxable Capital Gain for the year (-) Net Capital Loss deducted in Div C (-) Dividends deducted in Div C (-) Losses from Property (Cad and Foreign) (+) Income from Property (Non-Bus, Cad and Foreign) (e.g. Rent, Dividend, Royalty, Interest)

Political Donation: ≤400 = 75%, Over 400 but ≤ 750 = 300+ 50% of over 400, Over 750 but ≤1275 = 475+ 100/3% of Over 750, Over 1275 = 650
ITC: Child Care Space 25% (Limit 10,000 per space), Apprenticeship 10% (limit 2000 per apprentice), Qualified SR&ED 20%, Qualified Property 10%