Corporate Tax Filing & Advisory for your Business
End-to-end corporate tax compliance — return filing, advance tax, tax audit, and transfer pricing.
Expert legal advice — reply within 30 min
What is Corporate Tax?
Corporate Tax is a direct tax imposed by the Government of India on the net income or profits earned by companies. It is levied under the Income Tax Act, 1961 on both domestic companies (incorporated under the Companies Act in India) and foreign companies (that earn income through their operations in India). Corporate tax is one of the largest sources of revenue for the government and is applicable on the profits earned from business operations, capital gains, interest income, and other sources.
The corporate tax framework in India has undergone significant reforms in recent years. The introduction of Section 115BAA and 115BAB brought competitive tax rates to attract investments, while the abolition of the Dividend Distribution Tax (DDT) shifted the tax liability to shareholders. Proper corporate tax planning and compliance are essential for businesses to optimize their tax liability, avoid penalties, and ensure smooth operations.
Corporate Tax Rates in India
The applicable corporate tax rates depend on the type of company, its turnover, and the tax regime opted for. Note: Surcharge and Health & Education Cess (4%) are applicable over and above these base rates.
Key Deductions Available to Companies
Companies that have not opted for the concessional tax regime under Section 115BAA/115BAB can claim the following deductions to reduce their taxable income:
Corporate Tax Compliance Requirements
- Filing of Income Tax Return (ITR-6 for companies not claiming Section 11 exemption)
- Advance Tax payment in four quarterly installments (15th June, 15th Sept, 15th Dec, 15th March)
- Tax Audit under Section 44AB if turnover exceeds prescribed limits
- Transfer Pricing documentation and certification for international transactions
- TDS compliance — deduction, deposit, and quarterly return filing (Form 24Q, 26Q, 27Q)
- Maintaining books of accounts as per Section 44AA and Companies Act, 2013
- Filing of Tax Audit Report in Form 3CA/3CB and 3CD before the due date
- Country-by-Country Reporting (CbCR) for multinational enterprises with consolidated revenue exceeding Rs. 5,500 crore
Documents Required for Corporate Tax Filing
- Certificate of Incorporation and PAN of the Company
- Audited Financial Statements (Balance Sheet, Profit & Loss Account, Cash Flow Statement)
- Tax Audit Report (Form 3CA-3CD or 3CB-3CD)
- Details of Advance Tax and TDS payments (Form 26AS / AIS)
- Details of all bank accounts held during the financial year
- Computation of total income with supporting schedules
- Transfer Pricing Report (Form 3CEB) if applicable
- Board Resolution authorizing the signatory for tax filing
- Digital Signature Certificate (DSC) of the authorized signatory
Penalties for Non-Compliance
- Late filing of return attracts a fee of Rs. 5,000 under Section 234F (Rs. 1,000 if total income does not exceed Rs. 5 lakh)
- Interest under Section 234A at 1% per month on outstanding tax from the due date till the date of filing
- Interest under Section 234B at 1% per month for shortfall in advance tax payment (if advance tax paid is less than 90% of assessed tax)
- Interest under Section 234C for deferment of advance tax installments
- Penalty under Section 270A — 50% of under-reported income or 200% of misreported income
- Non-compliance with TDS provisions can attract penalty equal to the TDS amount not deducted or deposited
- Non-maintenance of Transfer Pricing documentation can attract a penalty of 2% of the value of international transactions
How it works?
Financial data collection
Share your company financials, balance sheet, P&L statement, and previous year tax records.
Tax planning & computation
Our CA analyses your financials, identifies applicable deductions, and computes corporate tax liability.
Review & consultation
Discuss the tax strategy and computation with our CA before final filing.
Filing & compliance
We file your corporate tax return and ensure all quarterly advance tax obligations are met.
Chat with us
Chat with us for all your corporate tax needs.
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I've been using the Legitax app and it's really made dealing with legal stuff easier. It's great how I can just open the app and quickly find a legal expert to talk to, no matter what time it is. Every time I've had a question, big or small, I've gotten easy-to-understand answers from their experts. The app is super easy to use too, which is a big plus for me. I feel more confident handling legal things now. Legitax has been a big help!
Vijay Kanoor
Bengalore, Karnataka
The Legal advice I get is straightforward and easy to understand, which is important for me. Using Legitax has taken away a lot of stress when it comes to legal matters. I definitely recommend it to anyone looking for quick and reliable legal help.
Krishnamoorthy B
Chennai, Tamil Nadu
The advocate I connected with on Legitax was incredibly helpful, clearing up many doubts I had. They offered solutions and insights into issues that were affecting my family and me. I've had such a positive experience that I wouldn't hesitate to recommend Legitax to my friends.
Bhavesh Jain
Jaipur, Rajasthan
I was really impressed with the quality of legal advice I received. The lawyer was patient, knowledgeable, and took the time to explain everything in detail. It felt like having a personal legal advisor at my fingertips.
Lata Sharma
Amritsar, Punjab
Very convenient service. I needed urgent legal advice regarding a property dispute and was connected with a qualified lawyer within minutes. The consultation was thorough and the advice was practical and actionable.
Prakesh Ranjan
Patna, Bihar
Excellent platform for legal consultations. The process is seamless and the lawyers are very professional. I got my documents reviewed quickly and the feedback was comprehensive. Highly recommended for anyone needing legal assistance.
Preety Singh
Lucknow, Uttar Pradesh
Legitax made the entire process of getting legal help so much simpler. From consultation to document drafting, everything was handled professionally. The pricing is transparent and reasonable.
Arvind Pratap
Bhopal, Madhya Pradesh
Frequently asked questions
Corporate Tax is a direct tax levied on the net income or profit earned by companies registered under the Companies Act, 2013 or any previous company law. Both domestic companies (incorporated in India) and foreign companies (earning income in India) are liable to pay corporate tax. It is governed by the Income Tax Act, 1961 and administered by the Central Board of Direct Taxes (CBDT).
Section 115BAA allows existing domestic companies to pay tax at an effective rate of 25.17% (22% + surcharge + cess) provided they do not claim any exemptions or deductions under Chapter VI-A (except 80JJAA), Section 10AA, additional depreciation, etc. Section 115BAB is specifically for new manufacturing companies incorporated on or after 1st October 2019 that commence manufacturing by 31st March 2024, offering an effective rate of 17.16% (15% + surcharge + cess). Once opted, both sections are irrevocable.
MAT is a provision under Section 115JB that ensures companies paying low or zero tax due to various exemptions and deductions still pay a minimum amount of tax. MAT is calculated at 15% of the book profit (profit as per the Profit & Loss account with prescribed adjustments). If the tax computed under normal provisions is less than MAT, the company is required to pay MAT. The difference between MAT paid and normal tax liability can be carried forward as MAT credit for up to 15 years.
Transfer Pricing refers to the pricing of goods, services, or intangibles transferred between associated enterprises (related parties). It applies when a company enters into international transactions with its associated enterprises or specified domestic transactions exceeding Rs. 20 crore. The transactions must be conducted at arm's length price, i.e., the price that would be charged between unrelated parties. Companies must maintain prescribed documentation and obtain a Chartered Accountant's report in Form 3CEB.
Tax Audit under Section 44AB is mandatory for every company regardless of profit or loss if the total turnover or gross receipts exceed Rs. 1 crore in the financial year. For companies where cash transactions do not exceed 5% of total receipts and payments, the threshold is Rs. 10 crore. The tax audit must be conducted by a practicing Chartered Accountant, and the report must be filed in Form 3CA (for companies audited under any other law) along with Form 3CD before the due date.
Companies are required to pay advance tax if their estimated tax liability for the year exceeds Rs. 10,000. Advance tax is paid in four installments: 15% by 15th June, 45% by 15th September, 75% by 15th December, and 100% by 15th March of the financial year. Failure to pay advance tax or shortfall in payment attracts interest under Section 234B (for default) and Section 234C (for deferment). Companies opting for presumptive taxation under Section 44AD must pay the entire advance tax by 15th March.