You cannot file your corporate tax as an individual if you do not have a business entity. Businesses in India and abroad engaged in trading within the country’s borders are subject to corporate tax.
Corporate tax returns are required to be filed annually by all business entities under the Income Tax Act 1961. The company can take the help of tax specialists or agencies who have trained tax-calculating professionals if filing taxes on their own proves challenging. Corporate tax includes both individual taxes paid by corporate employees and corporate taxes as a whole. Employers should take charge accordingly if they are corporations.
Your Corporate Tax Calculation: How Would You Do It?
According to the tax slabs implemented by the Income Tax Department, you must pay corporate tax based on the type of business you run. Businesses can earn from different sources and have to calculate their taxes based on only their earning resources. Here, you can find some basics that can help you to calculate your corporate taxes:
You can therefore find this slab with 25.17% tax if you use the Corporate Tax Calculator. Your income from your company must be taxed at 25.17% if it is less than 400cr. However, you can apply for some redemptions and incentives under sections 15BA, 15BAA, and 15BAB. MAT or minimum alternate tax is not due in this case.
New companies that start doing business in India after 1st October 2019 will have to pay 15% corporate tax, according to the Finance Ministry. In the meantime, you can file your corporate tax under this act if you do not apply for any incentives before 31st March 2023. If you have already applied for the incentives before 2023, you will have to pay 107.01% corporate tax instead of 15%. However, there is no surcharge or cess for new companies.
According to the Finance Ministry of India, foreign companies are subject to different laws depending on where they are located. Foreign companies can follow two different tax slabs. A foreign company that receives technical assistance from an Indian firm and has made an agreement before 1st April 1976 must pay a corporate tax of 50%. It is still necessary to register the company’s agreement with the Government of India.
Additional corporate tax of 40% along with a 2% surcharge is charged to foreign companies with other income sources. Corporate taxes and a 5% surcharge are imposed if the company’s income exceeds 10 crores.
It can be challenging to calculate corporate taxes, and you must be very careful when paying your taxes. Corporations typically have their own accountant who calculates their taxes for filing their corporate tax returns. As an alternative, if you are a Start-up and cannot afford to hire an accountant, you can simply use the online Corporate Tax Calculator.