1. Corporate Income Tax

• Public Limited Companies are taxed under the Income Tax Act, 1961.
  
• The base corporate tax rate is 22% (plus surcharge and cess) for domestic companies not claiming exemptions.
  
• For companies opting for Section 115BAA, no MAT (Minimum Alternate Tax) applies.
  
• MAT of 15% (plus surcharge and cess) applies to companies not under 115BAA.
  
• Foreign companies operating in India pay 40% plus applicable surcharge and cess.
  

2. Dividend Distribution Tax (DDT) Abolished

• From April 1, 2020, DDT has been abolished.
  
• Dividends are now taxable in the hands of shareholders at applicable slab rates.
  
• The company must deduct TDS @ 10% on dividends exceeding ₹5,000 per shareholder per year.
  
• For non-residents, TDS is 20% or as per the applicable DTAA.
  
• Dividend income must be disclosed in annual tax filings.
  

3. Goods and Services Tax (GST)

• Public Limited Companies are subject to GST registration and compliance.
  
• GST is applicable on the supply of goods and services, including B2B and B2C transactions.
  
• Must file monthly/quarterly returns (GSTR-1, GSTR-3B) and annual return (GSTR-9).
  
• Input Tax Credit (ITC) can be claimed as per the rules.
  
• GST audits may apply if turnover exceeds ₹5 crore.
  

4. Tax Audit and Filing Requirements

• A tax audit under Section 44AB is mandatory if turnover exceeds ₹1 crore (for business) or ₹50 lakh (for profession).
  
• Audit report must be filed in Form 3CA/3CB and 3CD.
  
• An annual income tax return is filed in Form ITR-6.
  
• Books of accounts must be maintained and preserved for at least 6 years.
  
• Penalties apply for non-filing, under-reporting, or incorrect disclosures.
  

5. Transfer Pricing and International Transactions

• Applicable if the company enters into international or specified domestic transactions with related parties.
  
• Must comply with transfer pricing rules under Sections 92 to 92F.
  
• Required to maintain transfer pricing documentation and file Form 3CEB.
  
• Arm’s length pricing is mandatory for all cross-border transactions.
  
• Non-compliance may result in adjustments, penalties, and interest.