Corporate Tax Rate Archives

What is Corporate Tax in India? And Corporate Tax Rate for Companies in India Introduction The Income Tax Act of 1961 imposes a corporate tax on both domestic and foreign corporations. Through this Act, the Government of India requires domestic corporations to pay corporate taxes based on their total income. Foreign companies, on the other hand, are only taxed on income earned or received in India. In this article information on "What is Corporate tax in India?", and the Corporate tax rate for companies is mentioned. What is Corporate Tax in India? A corporate is a legal entity that is distinct and distinct from its shareholders. The Income-tax Act requires both domestic and foreign corporations to pay corporate tax. A domestic company is taxed on its total income, whereas a foreign company is only taxed on income earned within India, that is, income accrued or received in India. The following types of companies can be defined for the purpose of calculating taxes under the Income Tax Act: Foreign Company: A foreign company is one that is not registered under the Indian Companies Act and has control and management outside India. Domestic Company: A domestic company is one that is registered under the Companies Act of India, as well as one that is registered in another country but has control and management in India. Private Limited Companies and Public Companies are both considered domestic companies. Insights on Corporate Tax Planning Corporate tax planning can be defined as strategizing one's financial business affairs in order to maximise profit while minimising payable tax by utilising the allowed benefits of deductions, rebates, and exemptions. Tax management is a risky and tricky business, and most corporations with large sums of money at stake hire financial experts to handle their taxation process. There are various financial players in India who provide corporate tax consultation and implementation. To ensure healthy tax planning, due diligence and absolute awareness of all tax laws and corresponding rules and regulations are required. Corporate tax planning is not the same as tax evasion or non-payment. Tax planning is the act of organising one's finances in such a way that the amount of tax owed is minimised while gains are maximized. One of the most important aspects of tax planning is that it strictly adheres to the legal and financial guidelines established by the government of India. Corporate Tax Rate for Companies in India For Domestic Companies: This tax is levied on companies registered under the Companies Act of 1956, both public and private. Domestic corporations are currently taxed at a rate of 30%. Furthermore, the Income Tax Act imposes a 7% surcharge on net income between Rs. 1 crore and Rs. 10 crore. If a company's net income exceeds Rs. 10 crore, it is subject to a 12% surcharge. Section 115BAA was enacted by the Government of India in 2019 through the Taxation (Amendment) Ordinance. This resulted in several changes to the Income Tax Act, including a corporate tax cut for domestic companies. Section 115BAA allows domestic businesses to pay tax at a rate of 25.168%. This corporate tax rate is broken down as follows: 22% of the base rate tax 10% surcharge applied + 4% cess applied 25.17% for the effective tax rate For Foreign Companies: Foreign corporations must pay corporate income tax on income received within a specified time frame. The Indian corporate tax rate on royalties or fees received is 50%, while other income or the balance is taxed at 40%. A 2% surcharge is levied on foreign companies with net income ranging from Rs. 1 crore to Rs. 10 crore. If its net income exceeds Rs. 10 crores, a 5% surcharge is levied. Additional Charges that apply: A 4% Health and Education Cess has been levied on the sum of income tax plus a surcharge, regardless of a company's net income. Furthermore, companies that take advantage of Section 115BAA are exempt from paying Minimum Alternate Tax (MAT) under Section 115JB of the Act. MAT is applicable at a 15% rate from the financial year 2020-21. Rebates on Corporate Tax in India Aside from the various types of taxes levied on corporate income, there are several tax rebate provisions available to businesses. All of these rebates are detailed below. Domestic companies can deduct dividends received from other domestic companies in certain circumstances. Special provisions apply to venture capital funds and venture capital enterprises. Deductions for exports and new ventures are permitted in some cases. Certain deductions apply to the installation of new infrastructure and power sources. Business losses can be carried forward for a maximum of eight years. In some cases, interest, capital gains, and dividends can also be deducted. Conclusion Corporate tax is a type of direct tax levied on profits earned by businessmen over a specific time period. Corporate taxes are levied at different rates depending on the level of profit earned by a business. Corporate tax is generally levied on a company's revenues after depreciation, SG&A (selling general and administrative expenses), and COGS (cost of goods sold) have been deducted.

For Indian Entrepreneur

For Foreign Entrepreneur

Special Entities

Tax Registrations

Other Registration

Returns

Annual Filings

Change Services

Closure

Legal Drafting

Special

Trademark

Copyright

Patent

Designing & Marketing

Blog

Meaning of Corporate Tax in India and Corporate Tax Rate for companies

Hi, Welcome to EbizFiling!

HOME

POLICY

RELATED LINKS

CONNECT WITH US

TOP 3 READS

All need to know about Trademark infringement

LLC vs. Corporation: Start your company in US

Duties of an Auditor in a Company

Secure Payment Modes

FSSAI Licence Modification
FSSAI License Renewal
Private Limited Company
US payroll services in India
UK Business Outsourcing Process in India
File CRF Form to change Master Data on MCA
Reply to Notice Under Section 148 of Income Tax Act
Reply to Notice u/s 143(2) of Income Tax Act for Scrutiny Assessment
Reply to Intimation Notice under section 245 of Incone Tax Act
Reply to Defective Notice u/s 139(9) of Income Tax Act
Reply to Income Tax Notice u/s 143(1)(A) for Prima Facie Adjustment
Reply to intimation notice of Section 143(1) of Income Tax Act
Reply to Income Tax Notice Under Section 133(6)
Corporate Legal Advice
LEI Code Registration
Employee Background Verification
US Business Solutions and Outsourcing Services in India
LLC Annual Compliances in Wyoming, USA
LLC Annual Compliances in Florida, USA
E-RCMC Registration under EPCES in India
Annual Filing & Bookkeeping & Accounting Service for Partnership Firm
ITIN Registration in the USA
Offshore Staffing Services in India
SEO Services in India
Content Writing Services in India
File Form 10BD Online under Income Tax Act
Annual Filing For Trust in India
Register a company in India from UK
Register a company in India from Germany
Register a company in India from France
Register a company in India from US
LLC Annual Compliances in Delaware, USA
Register a company in India from Canada
Register a company in India from UAE
Register a company in India from Singapore
Register a company in India from Australia
Company Registration in Indiana
Company Registration in California
Company Registration in New Mexico
Company Registration in New York
Company Registration in Texas
Company Registration in Wyoming, USA
Register Company in Florida, USA
Company Registration in Delaware
Annual Filing & Book-keeping & Accounting Service for Proprietorship Firm
Wall Designing
Virtual Office in India
Form 15CA Online Filing – Income Tax
NGO Darpan Registration
Overseas Direct Investment (ODI) through Automatic and Approval Route
HR Hiring and Recruitment Services in India
FLA Return Filing Online to RBI in India
APEDA (RCMC) Registration in India
ROC Annual Compliance for Producer Company
ROC Annual filing for Section 8 Company
ROC Annual filing for Public Limited Company
FCRA Registration Online in India
File Form CSR 1 online
Appeal to CIT- File an Appeal to Commissioner to Income Tax
Reply to Scrutiny Assessment Notice u/s 143(3)
Reply to Income Tax Notice- Know How to Respond to IT Notices
Surrender IEC License Online in India
भारत में कंपनी पंजीकरण / रजिस्ट्रेशन
Drop-Shipping Business in India by Foreigners
OPC Registration in India by an NRI
Company Registration in India- Know how to open a Company in India
Creation of Charge
LLP Registration in India by an NRI
Company Registration in India by an NRI
Right Issue of shares / Right Offerings
Renewal of IEC License
Application for the Extension of Name Reservation
Digital Marketing Services
Company Annual Filings in XBRL filing mode in India
12AA & 12A Registration Process
Trademark Registration / Brand Registration in the USA
Trademark Registration / Brand Registration in UK
Trademark Registration / Brand Registration in Malaysia
Strike Off Company
Payment of TDS return on purchase of property (form 26QB)
Business Advisory Services
Limited Liability Partnership Registration in Mumbai
Limited Liability Partnership
File ROC Form DPT 3 Return of Deposits
Income Tax Returns Filing
Private Limited Company Annual Filing
MCA Companies Fresh Start Scheme
LLP Annual Filing
MCA LLP Settlement Scheme 2020 (LSS 2020)
DIR 3 E KYC
ISO Certification in India
Run your operations / company in India without any liabilities
Add A Director
Accounting and Compliance Services for Start ups, Small companies, LLP and OPC (Micro Retainership Services)
Foreign Direct Investment through Automatic and Direct Route
A Quick guide to company registration in Bangalore
Apply for FSSAI license or Food license in India
Dormant Company Status Application
Trademark Registration in India
Conversion From Registered Partnership To LLP
Conversion From Registered Partnership To Private Limited Company
Change in Registered Office of LLP
Company Registration in USA
Company Registration in Malaysia
Company Registration in UK
Logo Design Services
Conversion of Private Limited Company to OPC
Opening a Branch in India by a Foreign Company
Nidhi Company Annual Filing
One Person Company (OPC) Registration in Mumbai
IEC Registration in Mumbai
Trademark Registration in Mumbai
Private Limited Company registration in Mumbai
Form GSTR 1
Maharashtra Professional Tax
Premium Retainership Services in India
MicroFinance Company registration
Conversion of Section 8 Company to Private Limited Company
DPIIT Startup Recognition certificate
RBI Form FC-GPR
Charge Registration on property
RBI Form FC-TRS
EPF Registration
PAN Application
Digital Signature
IEC Registration
TAN Application
DIN Application
GST Registration
Nidhi Company
Producer Company
Hindu Undivided Family (HUF), HUF Deed
Sole Proprietorship Firm Registration
Public Limited Company
E-Commerce Business
One Person Company (OPC)
Partnership
Indian Subsidiary
Non Profit Organization
GST Returns
CMA Report Preparation
E-Form Commencement of business certificate(form-20a)
Private Limited Company Registration
Startup Advisory Services
One Person Company (OPC)
Private Limited Company Registration
Income tax section 80g(5) registration
Company Registration Process in India for Foreigner- Know How to Open a Company in India
Secretarial Compliance Services
Search Report ROC
Revival of Struck Off Company
Trademark Watch Services
One Person Company (OPC)
Limited Liability Partnership
GSTR 9C filing by CA- GST Annual Audit due date, GSTR 9C FAQs
Tax Consultancy Services
International Trademark Registration Under Madrid Protocol
Surrender of DIN
Trademark Registration Process
LLP Registration Procedure – copy
LLP Registration Procedure – copy
Online LLP Registration and Complete Procedure
Aadhaar Udyog Online Registration
New Form INC-22A
FIND GST RATE, HSN CODE & SAC CODE
Company Registration in India
Hire Purchase
Contract Manufacturing Agreement
Web Development Agreement
Sole Selling Agreement
Underwriting Agreement
Mortgage Deed
Agreement Appointing A Common Arbitrator
Deed of Wakf-Alal-Aulad
Specific Power of Attorney
Foreign Collaboration Agreement Drafting
Joint Venture Agreement
Non- Disclosure Agreement
Franchise Agreement
Agreement to Sell Business
Vendor’s Agreement
Exclusive Distributorship Agreement
Shareholders Agreement
Consumer Complaint Letter
Power of Attorney
Company Name Change
Appointment of Auditors
Removal/Resignation of Director
GST Cancellation
GST LUT Letter of Undertaking
Conversion from Private Limited Company to Limited Liability Partnership (LLP)
Business Plan Preparation (Project Report)
Book-Keeping & Accounting
Trademark Renewal
Trademark Opposition
Trademark Rectification
Trademark Withdrawal in India
Payroll Setup & Processing
ESI Returns
PF Returns
TDS Returns Revision
Removal of Charge
Modification of Charge
MOA/AOA Printing
MOA/AOA Amendment
IEC Modification
Change of Registered Office Address
OPC to Private Limited Company
Conversion of Sole Proprietorship to OPC
Sole Proprietorship to Partnership firm
Conversion from Proprietorship to LLP
Conversion of Proprietorship to Private Limited Company
Conversion of Public Limited Company to Private Limited Company
Private Limited Company to Public Limited
Conversion of Partnership to Private Limited Company
Conversion of LLP to Private Limited Company
Conversion of Partnership to LLP (Limited Liability partnership)
Del Credere Agreement
Lease deed
TDS Returns
Strike Off OPC
Dissolution of Firms
Strike Off LLP
ESIC Registration
GST Modification
OPC Annual Filing
SSI/MSME/Udyog Aadhar Registration
Share Transfer & Transmission
Change in DIN
Add/Remove a Partner in LLP
LLP Name Change
Change in LLP Agreement
Increase in Authorized Capital
Change in Directorship
Patent Registration
Patent Search
Provisional Patent
Copyright Application
Trademark Assignment
Trademark Objections
Trademark Registration
Trademark Registration – copy
Limited Liability Partnership
Conversion into LLP