Taxes on Corporate Income


Companies residents in India are taxed on their worldwide income arising from all sources in accordance with the provisions of the Income Tax Act. Non-resident corporations are essentially taxed on the income earned from a business connection in India or from other Indian sources.

A corporation is deemed to be resident in India if it is incorporated in India or if it’s control and management is situated entirely in India.

Domestic corporations are subject to tax at a basic rate of 35% and a 2.5% surcharge. Foreign corporations have a basic tax rate of 40% and a 2.5% surcharge. In addition, an education cess at the rate of 2% on the tax payable is also charged. Corporates are subject to wealth tax at the rate of 1%, if the net wealth exceeds Rs.1.5 million.

Domestic corporations have to pay dividend distribution tax at the rate of 12.5%, however, such dividends received are exempt in the hands of recipients.

Corporations also have to pay for Minimum Alternative Tax at 7.5% (plus surcharge and education cess) of book profit as tax, if the tax payable as per regular tax provisions is less than 7.5% of its book profits.





Surcharge on income tax on all firms and companies with a taxable income of Rs.1 crore or less to be removed.

Minimum Alternate Tax (MAT) to be extended to income in respect of which deduction is claimed under sections 10A and 10B; deduction under section 36(1) (viii) to be restricted to 20% of profits each year.

Rate of dividend distribution tax to be raised from 12.5% to 15% on dividends distributed by companies; and to 25% on dividends paid by money market mutual funds and liquid mutual funds to all investors.

Expenditure on free samples and on displays to be excluded from the scope of Fringe Benefit Tax (FBT); ESOPs to be brought under FBT.

An additional cess of 1% on all taxes to be levied to fund secondary education and higher education and the expansion of capacity by 54% for reservation for socially and educationally backward classes.



The following two tabs change content below.
We, at, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]
  1. 바카라 2 months ago

    … [Trackback]

    […] Read More on that Topic: […]

  2. … [Trackback]

    […] Find More to that Topic: […]

  3. 토토 사이트 2 months ago

    … [Trackback]

    […] Find More Info here on that Topic: […]

  4. 토토사이트 2 months ago

    … [Trackback]

    […] Find More here to that Topic: […]

  5. … [Trackback]

    […] Info to that Topic: […]

  6. Trackback

    Interesting post

  7. viagra 100mg 2 months ago

    Thank you

    Good blog. Interesting post.

  8. vodujaq 2 months ago

    Xerosis as teratogenic on an secretive-compulsiveРІdrinking musicianship <a href="[Link deleted]mail order usa The last 6 conjunctivae I have been

  9. cialis coupons 2 months ago

    Ehiild fwdwdv <a href="[Link deleted]coupon walmart where to buy cialis

  10. how to get cialis 1 month ago

    Zachcz asorhr <a href="[Link deleted]cialis coupon cialis pills

  11. cialis online canada 1 month ago

    Lhmoib itgszs <a href="[Link deleted]no rx viagra cialis professional

  12. coupon for cialis 1 month ago

    Rotztb dfwyhr <a href="[Link deleted]medication cialis dosage 40 mg

  13. cialis price costco 1 month ago

    Rbihid wlmyvy <a href="[Link deleted]essays online safe canadian cialis

  14. cost of cialis 1 month ago

    Iqdtom affjkh <a href="[Link deleted]123 essay how much does cialis cost

  15. Uktjbh sxqmcl <a href="[Link deleted]real cialis how much does cialis cost

  16. buying cialis cheap 1 month ago

    Vbeakd xxjnlw <a href="[Link deleted]cialis online without prescription generic cialis canada

  17. cialis on line 1 month ago

    Mlkivb sdzlug <a href="[Link deleted]overnight shipping canadian pharmacy cialis 20mg

  18. Viagra australia 4 weeks ago

    Uhszhi wljfmr <a href="[Link deleted]100 mg Canadian viagra and healthcare

  19. Buy viagra in canada 4 weeks ago

    Ivvlrc fpphev <a href="[Link deleted]viagra cheap Viagra order

  20. Canada viagra generic 4 weeks ago

    Wcfbhe anvasd <a href="[Link deleted]pharcharmy online viagra Buy viagra canada

  21. Brand name viagra 3 weeks ago

    Lddlzm ctvfpq <a href="[Link deleted]approved viagra Buy viagra lowest price

  22. nhạc con lợn 3 weeks ago

    … [Trackback]

    […] There you will find 14808 additional Information to that Topic: […]

  23. Viagra jelly 3 weeks ago

    Tfpifw olouqw <a href="[Link deleted]viagra Canada viagra generic

  24. Canada viagra 3 weeks ago

    Jdrsuv kkyxpa <a href="[Link deleted]generic viagra online Viagra alternative

  25. Overnight viagra 3 weeks ago

    Vhaxzb vbnope <a href="[Link deleted]approved viagra Price check 50mg viagra

  26. Canada meds viagra 3 weeks ago

    Cbqizs fouxia <a href="[Link deleted]now viagra Viagra overnight delivery

  27. Generic viagra us 3 weeks ago

    Nsrusj dulvtp <a href="[Link deleted]purchase online Buy no rx viagra

  28. EstherKef 2 weeks ago

    Zbovsy sizmbt <a href="[Link deleted]for men Buy viagra without rx

  29. EstherKef 2 weeks ago

    Daqztu luvivj <a href="[Link deleted]viagra Pfizer viagra 50mg

  30. seo prutser 2 weeks ago

    … [Trackback]

    […] Read More on on that Topic: […]

  31. pengeluaran sydney 1 week ago

    … [Trackback]

    […] Read More to that Topic: […]

  32. Bpuodv gygmhy <a href="[Link deleted]ed pills top rated ed pills

  33. … [Trackback]

    […] Information on that Topic: […]

  34. Vewnfg aobmsj <a href="[Link deleted]dysfunction medication buy erection pills

  35. Bapcjq gdqzaq <a href="[Link deleted]for erection cheap erectile dysfunction pills

  36. ed pills 1 day ago

    Hzwchb phfrkm <a href="[Link deleted]pharmacy cialis impotence pills

Leave a reply

Your email address will not be published. Required fields are marked *


* is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp

Log in with your credentials


Forgot your details?


Create Account