How is corporate income tax levied under Indian laws?
Corporate income tax is levied against the income or profit made by a corporation in accordance to Income Tax Act. There is the divsion between domestic and foreign corporations, where all foreign-invested corporations, except liaison offices (since they cannot generate revenue), will have to pay corporate income tax, whose rate is higher than the domestic. A foreign company is foreign if its core management is located outside India for the duration of the year. However, if the corporation is incorporated in India under Indian laws, then, regardless of the seat of the management, such corporation is still domestic. Corporate income tax must be paid throughout the year in increments according to the following schedule:
- July 15 – 15 percent
- September 15 – 45 percent
- December 15 – 75 percent
- March 15% – 100 percent
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