Monetary Penalties and Late Fees A late filing fee of up to ₹10,000 is levied under section 234F. If the return is filed after the due date but before December 31, the fee is ₹5,000. For returns filed after December 31, the fee increases to ₹10,000. If the total...
Standard Due Date for Companies The standard due date for corporate tax filing is October 31st of the assessment year. This applies to all companies whose accounts are required to be audited. For the financial year 2024–25 (assessment year 2025–26), the due date is...
Meaning of Health and Education Cess Health and education cess is a tax levied to fund government welfare programs. It is charged in addition to income tax and surcharge. The cess applies to all taxpayers, including companies. It was introduced to replace earlier...
Definition of Surcharge A surcharge is an additional charge levied on the basic tax amount. It applies when a company’s total income exceeds specific thresholds. It is calculated as a percentage of the income tax before adding cess. The surcharge increases the overall...
Definition and Scope Corporate tax is a direct tax levied on the net income of companies. Income tax is a direct tax imposed on individuals, Hindu Undivided Families (HUFs), firms, and other non-corporate entities. Corporate tax applies specifically to registered...
Basic Tax Rate for Foreign Companies Foreign companies are taxed at a flat rate of 40 percent. This rate applies to income that is received or deemed to be received in India. The income includes royalties, technical fees, dividends, and business income. The rate is...
Standard Corporate Tax Rates Domestic companies with a turnover up to ₹400 crore are taxed at 25 percent. Companies with turnover exceeding ₹400 crore are taxed at 30 percent. These rates are applicable before adding surcharge and cess. The rates apply to companies...
Domestic Companies Companies incorporated under Indian laws are considered domestic companies. These include public limited, private limited, and one-person companies. They are liable to pay tax on their worldwide income. Turnover, nature of income, and applicable tax...
Definition of Corporate Tax Corporate tax is a direct tax levied on the net income or profit of companies. It is applicable to both domestic and foreign companies operating in India. The tax is governed under the Income-tax Act, 1961. Only registered companies are...
Introduction The Minimum Alternate Tax (MAT) framework ensures that companies with book profits but zero or negligible taxable income still contribute a minimum tax to the government. Introduced under Section 115JB of the Income Tax Act, MAT plays a key role in...