Wednesday, 24 June 2015

Corporate Income Tax in India

For companies, income is taxed at a flat rate of 30% for Indian companies, with a 5% surcharge applied on the tax paid by companies with gross turnover over Rs.1 crore (10 million). Foreign companies pay 40%. An education cess of 3% (on both the tax and the surcharge) are payable, yielding effective tax rates of 32.5% for domestic companies and 41.2% for foreign companies.  From 2005-06, electronic filing of company returns is mandatory. 
Corporate Income Tax compliance is not up to the mark in India whereas Salaried Employees contribute maximum Income Tax as compared to their standard of living. It is really a pity that individuals/corporate living Luxurious Style of Living are not contributing to the central revenue as compared to their earnings. An individual maintaining a two wheeler or Maruti 800 Car is made to pay tax more than the individuals maintaining Luxurious Car like BMW, Mercedes etc. Why it is so ? Finance Minister and all associated with Financial Planning of Indian Economy need to rethink and design policies in such a way that tax avoidance is minimum and compliance by heart is maximum.

Suggestions :  Demonetize Currency of INR 500, 100 and use of Cash in financial transactions should be minimized  If you agree, share this blog post with facebook friends, Google networks, on twitter and all other social networks. Will you ?  Rather you must if you are a True Indian

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