The Companies (Profits) Surtax Act, 1964
The Companies (Profits) Surtax Act, 1964 was a legislative measure enacted in India aimed at imposing an additional tax (surtax) on the profits of companies. Here’s a brief overview of the Act:
Purpose:
The Act was introduced to levy a surtax on the profits earned by companies in addition to the existing income tax.
The goal was to generate additional revenue from profitable companies, especially in the context of economic and developmental needs during that period.
Key Features:
The Act applied specifically to companies registered or incorporated in India.
The surtax was calculated as a percentage on the amount of taxable income or profits of the company.
The rate and other details of the surtax were laid down in the Act and could be amended by the government.
Historical Context:
Introduced during a period when India was focusing on industrial development and needed increased resources.
This surtax acted as a means to make profitable companies contribute more towards the national exchequer.
It was part of a broader tax regime that included income tax and other levies on companies.
Repeal or Changes:
Over time, this specific surtax provision was repealed or merged into the overall corporate tax framework.
The modern tax system in India has evolved, and such specific surtaxes on company profits are generally integrated into the corporate income tax provisions. Do write to us if you need any further assistance.
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