Corporate Tax Management & Filing Services

Understanding Corporate Tax Structure in India

Corporate tax in India is levied on the net profit earned by companies during a financial year, as per the Income Tax Act, 1961. Domestic companies are subject to different tax rates depending on their turnover and whether they opt for concessional tax regimes under Sections 115BAA or 115BAB. Foreign companies are taxed at a higher flat rate. In addition to income tax, applicable surcharge and health & education cess are also levied. Knowing the correct rate, conditions, and applicability is essential to avoid underpayment or penalties during tax assessments and filings.

Deductions and Exemptions for Companies

Indian tax law provides several deductions and exemptions for companies to encourage business activities, employment, R&D, and infrastructure development. Common provisions include Section 35 for scientific research, 80JJAA for additional employment, and depreciation benefits under Section 32. However, companies opting for concessional tax rates under 115BAA or 115BAB must forgo most deductions. Choosing the optimal regime and maintaining proper documentation is essential to avoid denial of claims during assessment. Tax planning should align with business goals and the nature of income to reduce the effective tax liability lawfully.

Advance Tax and TDS Compliance for Corporates

Corporates in India must pay advance tax in four installments during the year if their total tax liability exceeds ₹10,000. TDS (Tax Deducted at Source) compliance is also mandatory for payments like rent, professional fees, contractor payments, interest, and salary. Non-compliance leads to interest, penalties, and disallowance of expenses under Section 40(a)(ia). Timely payments and accurate filing of TDS returns ensure smooth tax audits and refund claims. Advance tax and TDS are critical parts of tax management and are closely monitored during assessments by the Income Tax Department.

Income Tax Return Filing for Companies (Form ITR-6)

All companies (except those claiming exemption under Section 11) must file their return using Form ITR-6. The due date for companies requiring audit is October 31st of the assessment year, and September 30th for non-audited companies. The return must include audited financials, tax audit reports (Form 3CA/3CB and 3CD), and supporting schedules. Filing must be done electronically with a digital signature. Accuracy in reporting incomes, deductions, taxes paid, and disclosures helps avoid scrutiny and ensure faster refunds. Proper filing also fulfills legal compliance and builds credibility for funding and tenders.

Comparison of Corporate Tax Regimes in India