This ppt includes Company - Definition and explain the types of company as per income tax act 1961

1. TOPIC :DEFINE COMPANY AND EXPLAIN THE TYPES
OF COMPANY AS PER INCOME TAX ACT 1961
Presented by,
MANGALA B
2nd M.com
G F G C W HOLENARASIPURA
Under the guidance of
Sundar B. N.
Asst. Prof. & Course Co-ordinator
GFGCW, PG Studies in Commerce
Holenarasipura

2. INTRODUCTION
In India income tax is a tax you pay to the
government based on your income.The Government
uses this tax money for various purposes including
public services infrastructure, development defence
spending and subsidies among other options. It is
compulsory that one has to pay income tax if the
income he or she earns crosses beyond a certain
limit.

3. MEANING OF COMPANY
Company whether Indian or Foreign is liable to
taxation under the income tax act 1961 corporation
tax is a tax which is levied on the incomes of
registered companies and corporation .
A company means any Indian Company or any
corporate body incorporated by or under the laws of
a country outside india.

4. DEFINITION OF COMPANY
• According to justice Lindley a company means
association of persons who contribute in shape of
money or money’s worth to a common stock and
employ it for some specific purpose.
• According to justice James A company is an
association of persons United for a common object.

5. TYPES OF COMPANIES INCOME TAX ACT
1961 • Company
• Widely held company
• Closely held company
• Indian company (section 2(26)
• Domestic company (Section 2 (22A)
• Foreign company (section 2(23A)
• Investment company
• Industrial company

7. • It is a company in which
the public are
substantially interested.

8. • It is a company in which
the public are not
substantially interested
.

9. • Indian company:
. Indian company
means a company formed and registered
under the companies act 1956 and
includes
A company formed and registered under
any law relating to companies formerly in
force in any part of India
(Other than the state of Jammu and
Kashmir and the union territories.

10. • A domestic company
means an Indian
company or any other
company which in
respect of its income
liable to tax under the
income tax act
• (Including dividends on
preference share)
payable out of such

11. • Foreign company means
a company which is not
a domestic company i.e
a company registered
outside India in any
other foreign country.

12. • Investment company
means a company
whose gross total
income consists mainly
of income which is
chargeable under the
heads income from
House property capital
gains and income from
other sources.

13. Industrial company :
Industrial company
means a company whose
business consists mainly
of the constitution of
ships or other
manufacturing or
processing of goods or in
mining the generation or
distribution of electricity

14. CONCLUSION
Many of these companies
offers similar Perks and
benefits but those do not
determine the culture
completely . The
approach taken with how
employees are treated
and what level of
ownership and trust they
are given is also a key