Union Budget 2019: Corporation tax is one of the biggest source of direct taxation for the central govt
Corporations with a net income of over Rs 10 crore need to pay a 12 percent surcharge.
Four types of companies in India need to pay corporation tax
Corporations are divided into two types in India: Domestic corporations and foreign corporations
The rate of corporate tax in India varies from company to company.
The Companies Act, 2013 governs the corporate sector in India. Every company in India, which is registered under the Act, is liable to pay, what is called corporation tax. It is also popularly called corporate tax. Corporation tax is imposed on the net income or profit earned by a company. The tax is imposed as per the specific rates mentioned in the Income Tax Act, 1961.
Four types of companies in India need to pay corporation tax. These include those companies which have been incorporated in India, companies that earn their income and revenue from India, foreign enterprises which have permanently establish themselves in the country, and companies that have earned the title of being Indian resident for tax purpose.
Corporations are divided into two types in India: Domestic corporations and foreign corporations. The former refers to those companies which have been registered under Companies Act, 2013. Foreign corporations are those who have not been incorporated in India. While Indian corporations have to pay corporate tax on their universal income, foreign corporations only have to pay the tax on the income accrued through Indian operations.
As is common across the world, net income or net revenue is calculated after accounting for certain costs like depreciation, selling cost and administrative costs. The net income or net revenue also includes net profits and income received from other sources.
The rate of corporate tax in India varies from company to company. The amount of tax a company will be paying depends on its revenues. This means that corporation taxes are based on a slab rate system.
Domestic corporations with annual turnover up to Rs 250 crores need to pay 25 percent towards corporation tax. Domestic corporations with annual turnover of over Rs 250 crore need to pay 30 percent corporation tax. Foreign corporations, on the other hand, need to pay a flat 40 percent corporate tax on their annual turnover.
These corporations also have to pay a surcharge on their net income.The rate of corporate tax in India varies from company to company. On the other hand, corporations with a net income of over Rs 10 crore need to pay a 12 percent surcharge.
Foreign corporations, meanwhile, pay a surcharge of 2 percent if they earn a net income between Rs 1 crore and Rs 10 crore. If the net income crosses that mark, these corporations need to pay a surcharge of five percent.
In India, there are about 8 lakh companies with a total sales figure of up to Rs 250 crores. There are only 7,000 companies across the country that register an annual turnover of over Rs 250 crores. Yet, these 7,000 large companies pay a lion’s share of the corporate taxes in India. These companies have been seeking a reduction in the tax slab since many years. According to the Income Tax department, 100 firms, which comprise 0.012 percent of the 8 lakh companies, contribute over 40 percent of India’s corporate tax collection.
The former editor-in-chief of Tehelka magazine stands accused of sexually assaulting his then woman colleague in the lift of a five-star hotel in Goa in November 2013
Shakti Mills gang-rape case: Bombay HC sets aside death penalty, sends three accused to life imprisonment
The trio, through their lawyer, had told the court the death sentence violated their fundamental right to life guaranteed under Article 21 of the Constitution
In August 2013, a 22-year-old photojournalist was gang-raped inside Shakti Mills in Mumbai. Later, an eighteen-year-old call centre employee reported that she too had been gang-raped, on 31 July 2013, inside the same mills complex.