Company Act 2013 introduced our new concept of a single-owner company which is One Person Company as the name presents its company of one person. It’s similar to a private Limited company however in compliance there is relief for OPC Company. OPC is not recognized in Income Tax Act 1961. For taxation purposes, One personal company is treated similarly to a Private Limited Company. Each OPC company registered in India needs to file an income tax return. OPC income tax filing due date for FY 2022-23 is 30 September 2023. OPC ITR filing is mandatory even though OPC have no profit or no transactions. The income Tax Rate for One Personal company is 25%. Below are details of the Income Tax rate for One person’s company. Over and above income tax surcharge & Education cess are applicable.
Income Tax Rate OPC Company FY 2021-22 and 2022-23
The special Income-tax rates applicable in the 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 Alternate Minimum Tax is a provision in Direct tax laws that is applicable for OPC. MAT is calculated as 15% of the book profit of 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 standard 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
Like Private Limited Companies, Income Tax Rate is applicable for OPC Companies in India. For Income tax purposes legal status of Private Limited & OPC is the same. Under Section 139(1) OPC Company is also required to file an annual Income Tax Return.