Budget 2022 | What is corporation tax?
Corporation tax, also known as corporation tax or corporation tax, is paid by companies operating in India on income earned worldwide. The tax rate varies depending on whether the company is incorporated in India or abroad.
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It is a direct tax on the net income or profit of a company based on its aggregate profits, in the case of companies which carry on business in India, and is levied on income received in India or which s accrues in India in case of non-resident companies.
Currently, Indian branches of foreign companies are subject to corporate tax at 40 percent.
With the government’s reduction of the domestic corporate tax rate from 30% to 22% starting in the 2019-2020 financial year, the gap between the rates applicable to foreign and domestic companies has widened.
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