{"id":141,"date":"2022-10-17T13:03:52","date_gmt":"2022-10-17T13:03:52","guid":{"rendered":"https:\/\/lawyer-india.com\/?p=141"},"modified":"2023-03-07T17:32:26","modified_gmt":"2023-03-07T17:32:26","slug":"corporate-tax-in-india","status":"publish","type":"post","link":"https:\/\/lawyer-india.com\/corporate-tax-in-india\/","title":{"rendered":"Corporate Tax in India"},"content":{"rendered":"\n<p>The&nbsp;<strong>corporate tax in India<\/strong>&nbsp;is levied on the taxpayer\u2019s worldwide income in case of residents and only on Indian-source income for non-residents.<\/p>\n\n\n\n<p>The&nbsp;<strong>corporate tax rate in India<\/strong>&nbsp;is 30% (without surcharge) for domestic companies, with a different rate applicable in case of foreign companies.<\/p>\n\n\n\n<p>In this article, our team of&nbsp;<a href=\"https:\/\/www.lawyer-india.com\/\"><strong>lawyers in India<\/strong><\/a>&nbsp;answers some of the most common questions concerning taxation, both in case of domestic companies, and foreign branches.<\/p>\n\n\n\n<p>For detailed information, as well as complete legal counsel regarding taxation, you can reach out to our tax experts.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #002e5b;color:#002e5b\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #002e5b;color:#002e5b\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lawyer-india.com\/corporate-tax-in-india\/#what-is-the-standard-corporate-tax-in-india\" title=\"What is the standard corporate tax in India?\">What is the standard corporate tax in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lawyer-india.com\/corporate-tax-in-india\/#what-is-the-basis-for-taxation\" title=\"What is the basis for taxation?\">What is the basis for taxation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lawyer-india.com\/corporate-tax-in-india\/#what-are-the-filing-and-payment-requirements\" title=\"What are the filing and payment requirements?\">What are the filing and payment requirements?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/lawyer-india.com\/corporate-tax-in-india\/#other-taxes-in-india\" title=\"Other taxes in India\">Other taxes in India<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what-is-the-standard-corporate-tax-in-india\"><\/span><strong>What is the standard corporate tax in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The tax rate is calculated based on the income of the business and it includes two rates, the basic tax and the effective tax rate, the one also including the surcharge and the health and education cess with a value of 4%.<\/p>\n\n\n\n<p>For the tax year 2021\/22 the following effective rates apply:<\/p>\n\n\n\n<ul>\n<li>31.20% for income of less than INR 10 million;<\/li>\n\n\n\n<li>33.38% for income of more than INR 10 million and less than INR 100 million;<\/li>\n\n\n\n<li>34.94% for income above the value of INR 100 million.<\/li>\n<\/ul>\n\n\n\n<p>The surcharge is payable when the total taxable income is above INR 10 million.<\/p>\n\n\n\n<p>Some companies can benefit from a reduced tax, however, this applies only to companies that have not claimed a tax holiday available in a Special Economic Zone, and who comply with other requirements.<\/p>\n\n\n\n<p>Newly incorporated companies that activate in the manufacturing sector or those involved in the generation of electricity can also benefit from a reduced rate, subject to conditions.<\/p>\n\n\n\n<p>The&nbsp;<a href=\"https:\/\/www.lawyer-india.com\/taxation-in-india\"><strong>corporate tax rate in India<\/strong><\/a>&nbsp;for foreign companies is 40%, amounting to a total of 43.68% including surcharge.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what-is-the-basis-for-taxation\"><\/span><strong>What is the basis for taxation?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Resident companies are taxed on their worldwide income while non-resident corporations only on the income they derive from India.<\/p>\n\n\n\n<p>As previously mentioned, the&nbsp;<strong>corporate tax in India<\/strong>&nbsp;also includes a surcharge.<\/p>\n\n\n\n<p>Entrepreneurs can receive more information about the taxable income from our team.<\/p>\n\n\n\n<p>Tax<strong> residency in India<\/strong> for a company is determined according to the location of its registration: it is deemed an Indian tax resident if registered in India or if its place of effective management is in India. Foreign nationals who use the latter should also know that they need to comply with the conditions for the long-term entry visas. Our team can give you more details.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what-are-the-filing-and-payment-requirements\"><\/span><strong>What are the filing and payment requirements?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The tax year in India runs from April 1 to March 31. Companies file separate returns as consolidated ones are not permitted.<\/p>\n\n\n\n<p>All taxpayers are required to offer details on their income and expenses and the audited accounts, as required for some companies in India.<\/p>\n\n\n\n<p>Failure to observe the mandatory requirements for filing, withholding taxes, underreporting and misreporting results in penalties.<\/p>\n\n\n\n<p>Our&nbsp;<strong>lawyers in India<\/strong>&nbsp;can give you details on the criminal proceedings that can ensue if failing to file the annual tax return.<\/p>\n\n\n\n<p>Our team can give you more information on the requirements and rules set forth by the tax authorities, the Income Tax Department and the&nbsp;<strong><a href=\"https:\/\/www.cbic.gov.in\/htdocs-cbec\/aar\/auth\" target=\"_blank\" rel=\"noreferrer noopener\">Authority for Advance Rulings<\/a><\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"other-taxes-in-india\"><\/span><strong>Other taxes in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In addition to the&nbsp;<strong>corporate tax in India<\/strong>, companies are also required to pay the following taxes:<\/p>\n\n\n\n<ul>\n<li>10% withholding tax on dividends;<\/li>\n\n\n\n<li>0%, 5%, 12%, 18%, 28% goods and services tax;<\/li>\n\n\n\n<li>12% (in general) social security contributions by the employer to the provident fund.<\/li>\n<\/ul>\n\n\n\n<p>Other taxes apply, apart from the ones briefly listed above and the&nbsp;<strong>corporate tax in India<\/strong>.<\/p>\n\n\n\n<p>Real property taxes, stamp duty and transfer taxes apply.<\/p>\n\n\n\n<p>There is no payroll tax, no capital duty ad no net worth or inheritance\/estate tax.<\/p>\n\n\n\n<p>India has signed tax treaties with more than 90 countries worldwide.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.lawyer-india.com\/contact\"><strong>Contact us<\/strong><\/a>&nbsp;if you want to know more about the&nbsp;<strong>corporate tax in India<\/strong>.<\/p>\n\n\n\n<p>Our team of lawyers can give you details on the tax laws for companies and individuals and assist you if you wish to submit an appeal to the income tax appellate tribunal.<\/p>\n\n\n\n<p>Non-residents interested in personal income tax matters can reach out to our agents specializing in <strong>Indian immigration<\/strong> is they wish to know more about how their Indian-sourced income will be taxed. We can also assist foreign nationals who live in the country based on a residence permit and who have questions about their taxation. Reach out to us for more information about our services.<\/p>\n\n\n\n<p>If you are interested in how to obtain <strong><a href=\"https:\/\/lawyer-india.com\/indian-citizenship-by-investment\/\" target=\"_blank\" rel=\"noreferrer noopener\">citizenship in India<\/a><\/strong>, our team can give you complete details about the process, according to your situation. For most foreign nationals, the application will be made by naturalization, or, in some cases, for registration as the spouse of an Indian citizen (if they have been lawfully and ordinarily residing in the country for seven years). We can give you more details upon request.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The&nbsp;corporate tax in India&nbsp;is levied on the taxpayer\u2019s worldwide income in case of residents and only on Indian-source income for non-residents. The&nbsp;corporate tax rate in India&nbsp;is 30% (without surcharge) for domestic companies, with a different rate applicable in case of foreign companies. In this article, our team of&nbsp;lawyers in India&nbsp;answers some of the most common [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":55,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[68,69,13,70],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Corporate Tax in India - Rates and Filing Requirements<\/title>\n<meta name=\"description\" content=\"Our lawyers in India specializing in taxation matters highlight the main requirements concerning corporate tax in India.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lawyer-india.com\/corporate-tax-in-india\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Corporate Tax in India - 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