An encyclopedic guide to Corporate Taxation in India

 


What comes under the company’s income?

Since we have established that corporate tax is just the business version of personal income tax. It would be interesting to know the things that fall under the category of the corporation's income for accurate tax calculation. Speaking of accurate corporate tax computation, you might want to get in touch with top accounting firms in Bangalore for proper tax management. 


Here are a few types of income a company earns that can be subjected to corporate taxation.  

  • Profits earned from the business operating in the country

  • Gains from the Capital 

  • Income from other sources, such as like, interest, dividends, etc.

  • Income generated from rental properties


Who are eligible to pay Corporate Tax in India?

Almost all domestic as well as foreign companies operating in India are subjected to pay corporation tax provided the net income generated by their business in the country exceeds Rs 250 crore in a financial year. However, the tax rates differ from company to company. For instance, all foreign companies are imposed with 40% corporate tax on the incomes they have made in India whereas domestic corporations are charged with 25% corporate tax rate if their net profit is Rs 250 crore and 30% if it crosses the mentioned amount. 


In case you fail to file your ITR on time, you have to encounter penalties. That’s why it is important to hire the best CA firm in Bangalore for accurate tax calculation and timely filing to avoid distressing tax penalties. 

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