The corporate tax also known as a corporation tax is a direct tax levied on net income, Capital gains, and profits made by entities both domestic and foreign. This tax is imposed at a specific rate as per the provision of Income Tax Act of 1961. The company tax rate is based on the type of entity and revenue earned. The slab rate system outlines the corporate tax rate levied on it, and it differs for domestic and foreign companies.
Filing corporate taxes in India provides companies with opportunities for tax deductions under sections 54GA and 54EC, incentivising investments in capital gains and charitable donations. Here are some of the benefits of filing corporate taxes in India:
Corporate tax return filing is a tedious task that requires filing multiple forms on the official portals. Even a small mistake can cause rejections. This is exactly why Abhinav Suresh Advocate CA offers an easy 4 step process with expert support:
1. Consultation and Document Collection
Begin the process with a consultation with Abhinav Suresh Advocate CA’s experts, who will guide you through the required information and documents for your corporate tax return filing. Provide comprehensive financial records, and the Abhinav Suresh Advocate CA team will assist in organising the necessary data.
2. ITR Form Selection
Abhinav Suresh Advocate CA’s experts will determine the most appropriate Income Tax Return (ITR) form for your business based on its nature, income level, and specific activities. This personalised approach ensures accurate and efficient filing, optimising for your unique circumstances.
3. Efficient Form Completion and Verification
Our team will handle the entire process of completing the selected ITR form, ensuring all sections are accurately filled. We will conduct a meticulous review to catch any errors or discrepancies. Once the form is completed, it will be verified through the necessary means, including digital signatures or physical signatures on a printed copy.
4. Submission and Payment Assistance
Our team takes care of the submission of your corporate tax return through the online portal of the Income Tax Department. If there is a tax liability, the team will guide you through the process of making the payment using approved methods.
Any company registered under the Companies Act of 1956 is required to pay corporation tax
All domestic companies and foreign companies functioning in India should pay corporate tax
Both public and private companies are required to pay corporation tax based on their income
Foreign companies that are permanently established in India is also expected to pay corporate tax
Here is a checklist that simplifies the process of corporate tax filing. It provides a summary of necessary actions, from assessing corporate income tax and to ensuring all taxed entities are accounted for:
Confirm if your business meets the criteria for mandatory ITR filing as per the Income Tax Act of 1961
Choose the correct ITR form that suits your business structure and activities
Gather necessary documents, including PAN card, registration certificate, income/expense reports, and TDS certificates
Calculate your company’s tax liability by subtracting allowable expenses from total revenue
Ensure any outstanding taxes are paid before submitting the ITR, with payment options available both in-person and online
Choose between online and offline filing methods based on convenience
Register on the Income Tax Department’s e-filing portal for online filing or submit the downloaded ITR form offline
Foreign companies operating in India must obtain a PAN before ITR filing
Complete mandatory registration with the Income Tax Department, with both online and offline options
Foreign businesses must withhold tax from payments to Indian residents, with the withholding tax rate determined by the payment type
Eligible foreign businesses can claim tax credits in India for taxes paid in their home country, using Form 67.
The Indian corporate tax rate for domestic companies stands at a basic rate of 30% on total income. However, certain specified domestic companies, particularly startups, may be eligible for concessional tax rates. Here is a detailed Corporate tax rates 2024-25 in India: