Get 30 minutes of expert counselling. No Spam.No Sharing. 100% confidentiality
Book a 30-minutes Consultation from a Legal and Financial Expert Now.
Fill up the simple contact form available on this page.
Our experts will call you to understand your requirements.
You will receive complete details along with the personalized quotation in your email.
The Indian tax structure stretches back to the ancient periods when cultivators and craftsmen deposited their money in the form of crop production, gems, and jewels. As the country’s dealing with economic growth, the Indian tax system is quite good. The revenue generated via levies has benefited the country’s development and functioning. From the year 1860, British control introduced the present tax structure that we currently know.
Article 256 of the constitution of India states “Every tax that is collected is backed up by a law.”
As you keep reading the article you will get a detailed understanding of the taxation structure of India, along with the several tax structures rates, etc.
A large corporation is often known as a business. It is a corporate construct that is regarded to have specific roles and obligations and hence has its legal existence distinct from that of its stockholders.
If you already own an business in India then you should be aware that it can be divided into two types of categories, they are as follows:
Domestic and foreign corporations are both obligated to pay business taxes, according to the Income Tax Act.
Read More: Types Of Taxes In India
Types of Businesses | Tax Rate | Surcharge on net income less than 1 crore | Surcharge on net income greater than 1 crore and less than 10 crores | Surcharge on net income greater than 10 crores |
---|---|---|---|---|
Domestic companies with annual sales of up to Rs 250 crore | 25% | NA | 7% | 12% |
Domestic company with a revenue above Rs 250 crore | 30% | NA | 7% | 12% |
Foreign Companies | 40% | NA | 2% | 5% |
A domestic institution is one whose administration is fully based in India and is of Indian origin. If a local firm has stores in different countries, the very same amount of corporation tax is levied on the industry’s estimated worldwide revenues. In the case of local enterprises in India, corporation tax also takes into account profits generated outside of India. Let us go through some stats below:
If a firm’s annual income surpasses Rs. 1 crore in a particular fiscal year, it is subject to a 5% premium corporate income tax.
A domestic corporation is also subject to a 4% Medical and Support Surcharge.
A domestic corporation with a revenue of amount of Rs. 250 crore charges a fee corporation tax rate of 25%.
Total Revenue | Tax Rate |
---|---|
Rs 250 crores | 25% |
Above Rs 250 crores | 30% |
A global firm is a business that is not of Indian origin. It is managed and controlled from a location beyond India. The Companies Act of 2013 does not apply to these businesses. The laws governing the taxes procedure for a multinational enterprise vary considerably from those governing local firms. It all hinges on the tax agreement that India as well as other nations have reached.
Below you will find a table to understand the stats in detail:
Type of Income | Tax Rate |
---|---|
Any other revenue from businesses in India. | 40% |
Payments for systems integration acquired by a multinational company from the administration or any Indian company from the date before April 1976 arrangement authorized by the national government. | 50% |
There are numerous sorts of corporate income taxes imposed on businesses, and there are also procedures for business tax relief or credits. The major tax credits to contemplate are as follows:
Get 30 minutes of free consultation
with our company formation experts!
Each payer, even business, needs to do some financial planning so that they can increase their profit margins while lowering their taxable income. Corporation tax planning necessitates the creation of a structure to attain this aim, thus businesses hire professionals who are well-versed in all the laws and regulations governing paying taxes. Since every firm entails considerable financial concern, effective corporation tax preparation is necessary.
As business earnings grow, so do its tax payments. Therefore, in this case, they must commit adequate work and attention to tax preparation that reduces liabilities.
India has one of the lowest per capita corporate tax rates. As a consequence of the advent and ongoing advancement of innovation, the ability to incorporate and acquire basic identification numbers in the domain of Direct and Indirect Taxes has become faster and easier, permitting enterprises to be established rapidly.
In India agricultural income is not subject to taxation.
Anyone whose age is below 60 years and their income is more than 2.5 lakhs per annum.
TDS (Tax Deducted at Source) is an indirect mechanism of tax deduction under the Income Tax Act of 1961 at the point of income formation. The payer deducts tax and remits it to the government on behalf of the payee.
Yes, PAN cards are issued to every taxpayer regardless of whether that person is an individual, a partnership firm, or a company. You can apply for a PAN card at the official income tax portal of the Government of India.
Get 30 minutes of expert counselling. No Spam.No Sharing. 100% confidentiality
Netherlands
Nieuwezijds Voorburgwal 104 Amsterdam – 1012 SG, The Netherlands
Phone:+31202441878
USA
501 Silverside Rd, Suite 105 Wilmington, DE 19809 USA
Phone +16503831061
India
WeWork Platina Tower, Sikandarpur, Gurugram Haryana 122002
Phone: +919643460171
Canada
398-2416 Main St Vancouver BC V5T 3E2 CANADA
Phone +16503831061
©2021 ODINT Consulting LLP