{"id":6477,"date":"2022-10-10T04:47:02","date_gmt":"2022-10-09T23:17:02","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=6477"},"modified":"2024-10-10T15:51:00","modified_gmt":"2024-10-10T10:21:00","slug":"corporate-tax","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/","title":{"rendered":"Corporate Tax in India: The Ultimate Guide"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Corporate tax accounts for a major share of the Government of India\u2019s revenue. Every business operating in the country pays corporate taxes.\u00a0<\/span><span style=\"font-weight: 400;\">If you are a business owner or startup founder looking to learn more about corporate tax in India, here\u2019s a quick read to help you out.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d11d95604be\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d11d95604be\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#What-is-corporate-tax\" >What is corporate tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#Update-on-corporate-tax-rate-Budget-2024\" >Update on corporate tax rate: Budget 2024<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#Tax-incentives-for-specific-industries\" >Tax incentives for specific industries<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#Deductions-applicable-on-corporate-tax-in-India\" >Deductions applicable on corporate tax in India\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#Capital-Gains\" >Capital Gains<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#Donations-to-Charity\" >Donations to Charity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#Enrolment-of-New-Employees\" >Enrolment of New Employees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#Depreciation-Deduction\" >Depreciation Deduction<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#Corporate-tax-rate-for-a-domestic-company\" >Corporate tax rate for a domestic company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#Corporate-tax-rate-for-a-foreign-company\" >Corporate tax rate for a foreign company<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#Surcharge-rates-on-corporate-tax\" >Surcharge rates on corporate tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#Health-and-education-cess\" >Health and education cess<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#Minimum-Alternate-Tax-MAT\" >Minimum Alternate Tax (MAT)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#Application-and-Exemption-of-Minimum-Alternate-Tax-MAT\" >Application and Exemption of Minimum Alternate Tax (MAT)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#Provisions-for-corporate-tax-rebates\" >Provisions for corporate tax rebates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#Tips-for-Corporate-Tax-Planning\" >Tips for Corporate Tax Planning<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#Explore-Tax-Deductions-Options\" >Explore Tax Deductions Options<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#Understand-Tax-Laws-and-Regulations\" >Understand Tax Laws and Regulations<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#How-to-pay-corporate-tax-online\" >How to pay corporate tax online?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/corporate-tax\/#Frequently-Asked-Questions\" >Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-corporate-tax\"><\/span><b>What is corporate tax?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Corporate tax, as the name suggests is levied on the companies incorporated in India or outside the country under the laws of that particular country. It is imposed on the income or the profits earned by a corporation by the government.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is meant for businesses including both domestic and multinational companies. The revenue the government generates from corporate tax is significant as it plays a crucial role in the nation&#8217;s development.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Update-on-corporate-tax-rate-Budget-2024\"><\/span><b>Update on corporate tax rate: Budget 2024<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In the Union Budget 2024, Finance Minister Nirmala Sitharaman announced the reduction in corporate tax of both foreign companies from 40% to 35%.\u00a0<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Section<\/b><\/td>\n<td><b>Tax Rate<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>First Schedule to Finance Act, 2010:<\/b> <span style=\"font-weight: 400;\">Applicable if the company\u2019s turnover or gross receipts are less than \u20b94 billion in the previous year<\/span><\/td>\n<td><span style=\"font-weight: 400;\">25%<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Section 115BA:<\/b> <span style=\"font-weight: 400;\">The company was established and registered on or after March 1, 2016. It is engaged in manufacturing or production.The company does not claim specified exemptions, incentives, or deductions.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">25%<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Section 115BAA: <\/b><span style=\"font-weight: 400;\">The company does not claim any specified exemptions, deductions or incentives.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">22%<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Section 115BAB: <\/b><span style=\"font-weight: 400;\">The company is established and registered on or after October 1, 2019. It is engaged in manufacturing or production. Manufacturing commences on or after October 1, 2019, but on or before March 31, 2024. The company does not claim any specified incentives, exemptions or deductions.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">15%<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>First Schedule to Finance Act 2010:<\/b> <span style=\"font-weight: 400;\">Applicable to any other domestic company that does not fall under the specific categories mentioned above.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Tax-incentives-for-specific-industries\"><\/span><b>Tax incentives for specific industries<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are specific industries such as green manufacturing companies, investments, and new infrastructure related to it can benefit from a concessional corporate tax rate of 15%. However, these industries should have commenced their production before March 31, 2024 to be eligible for this incentive.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Deductions-applicable-on-corporate-tax-in-India\"><\/span><b>Deductions applicable on corporate tax in India\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Corporates can reduce or optimise their taxes by using strategies along with efficient management of deductions, exemptions, and rebates.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The below mentioned deductions are applicable on corporate tax in India:\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Capital-Gains\"><\/span><b>Capital Gains<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Capital gains can be taxed at a flat rate of 12.5% or 20%. It depends on the nature of the gains. However, it can be exempted under sections such as 54D, 54G, 54GA, 54EC.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Donations-to-Charity\"><\/span><b>Donations to Charity<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Under Section 80G,<\/span> <span style=\"font-weight: 400;\">any contribution made to eligible charitable organisations can be tax exempted by 50% to 100%.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Enrolment-of-New-Employees\"><\/span><b>Enrolment of New Employees<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Corporates can claim tax deduction when they hire new employees.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Depreciation-Deduction\"><\/span><b><\/b><b>Depreciation Deduction<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Under Section 32, companies can claim a 15% tax deduction for depreciation of their old assets. Additionally, companies can also claim a 20% tax deduction on new assets used in the manufacturing or production sector. <\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Corporate-tax-rate-for-a-domestic-company\"><\/span><b>Corporate tax rate for a domestic company<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The table below displays the applicable corporate tax rate for a domestic company in AY 2021-2022:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Gross Turnover<\/b><\/td>\n<td><b>Corporate Tax Rate<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Up to Rs. 400 crore<\/span><\/td>\n<td><span style=\"font-weight: 400;\">25%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Exceeding Rs. 400 crore<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Corporate-tax-rate-for-a-foreign-company\"><\/span><b>Corporate tax rate for a foreign company<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The table below displays the applicable corporate tax rate for a foreign company in AY 2021-2022:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Income Nature<\/b><\/td>\n<td><b>Corporate Tax Rate<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Royalties\/fees for technical services received by a foreign corporate from GoI\/any Indian concern<\/span><\/td>\n<td><span style=\"font-weight: 400;\">50%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Other income obtained through Indian operations<\/span><\/td>\n<td><span style=\"font-weight: 400;\">40%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The Government of India introduced new rates of corporate taxes, which are applicable only to specific companies.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The table below shows the tax rates that are applicable only for certain corporates:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Type of Company<\/b><\/td>\n<td><b>Corporate Tax Rate<\/b><\/td>\n<td><b>Requirements\/Benefits<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Companies not seeking incentives\/exemptions<\/span><\/td>\n<td><span style=\"font-weight: 400;\">22% (earlier 30%) + Applicable Cess &amp; Surcharge. Corporate tax rate effective at 25.17%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Companies don\u2019t have to pay MAT*<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Corporates seeking incentives\/exemptions<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Remains unchanged at 30%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">MAT rate is reduced to 15% from 18.5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">New Manufacturing Companies<\/span><\/td>\n<td><span style=\"font-weight: 400;\">15% (Earlier, it was 25%)\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The company should be incorporated before October 2019 and start production before March 2023<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">*Note: MAT = Minimum Alternate Tax. Scroll down for more details.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Surcharge-rates-on-corporate-tax\"><\/span><b>Surcharge rates on corporate tax<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In addition to tax rates, here are the surcharge rates for corporate taxpayers:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Income range<\/b><\/td>\n<td><b>Surcharge Rate<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Rs. 1 crore to 10 crore<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7% on the tax calculated for domestic companies \/ 2% on the tax calculated\u00a0 for foreign companies,\u00a0<\/span><span style=\"font-weight: 400;\">based on rates mentioned above<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Exceeding Rs. 10 crore<\/span><\/td>\n<td><span style=\"font-weight: 400;\">12% on the tax calculated for domestic companies \/ 5% on the tax calculated\u00a0 for foreign companies,\u00a0<\/span><span style=\"font-weight: 400;\">based on rates mentioned above<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Health-and-education-cess\"><\/span><b>Health and education cess<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Additionally, a Health and Education Cess that is 4% of the total tax liability + surcharge as mentioned above will be added to the tax payable before such cess.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Minimum-Alternate-Tax-MAT\"><\/span><b>Minimum Alternate Tax (MAT)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In case the total tax liability of a company for a given assessment period on the total income is under 15% of the book profits after adding surcharge and HEC, then such a company would have to pay Minimum Alternate Tax, a type of token tax monies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This applies if the company in question has not opted for Section 115BAA or 115BAB.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">MAT is charged at 9% plus surcharge and cess per the rates above if the company in question is a unit of an international financial services centre, and earns its revenue only in the form of convertible foreign exchange.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">MAT can be carried forward and adjusted against the regular tax liability for up to 10 consecutive years.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Application-and-Exemption-of-Minimum-Alternate-Tax-MAT\"><\/span><b>Application and Exemption of Minimum Alternate Tax (MAT)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Minimum Alternate Tax applies to all kinds of companies, including foreign companies which have income sources in India.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">MAT, however, does have some exceptions. For instance, under Section 115B, any company set up for the business of life insurance will be exempt from MAT.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Further, companies that generate revenue out of a business in shipping will be exempt from paying MAT, as per the provisions under Section 115V-O.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Provisions-for-corporate-tax-rebates\"><\/span><b>Provisions for corporate tax rebates<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Some of the important provisions for corporate tax rebates are as follows<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The IT department allows deductions if a corporate set up new infrastructure or power sources<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rebates are available for dividends as per applicable terms and conditions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A deduction is allowed on interest income in certain instances<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The IT Department allows certain deductions for exports and new undertakings of a business<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tips-for-Corporate-Tax-Planning\"><\/span><b>Tips for Corporate Tax Planning<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Effective tax planning for corporates is necessary to optimise the current tax management system that will gradually enhance the financial efficiency of the company. Listed below are a few tips to help you plan the taxes smoothly:\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Explore-Tax-Deductions-Options\"><\/span><b>Explore Tax Deductions Options<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b> <\/b><span style=\"font-weight: 400;\">Identify the deductions and tax exemptions that are available for your business. By optimising these options, you can reduce the taxable income of your company.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Understand-Tax-Laws-and-Regulations\"><\/span><b>Understand Tax Laws and Regulations<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Understand the Income Tax Act 1961, and Companies Act 2013 and get acquainted with the current law and regulations that are specifically applicable to your business.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How-to-pay-corporate-tax-online\"><\/span><b>How to pay corporate tax online?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Trying to figure out how to pay corporate taxes online? Here&#8217;s something to give you a boost.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Businesses can make corporate tax payments online through the <\/span><a href=\"https:\/\/onlineservices.tin.egov-nsdl.com\/etaxnew\/tdsnontds.jsp\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">e-payment facility of the official portal of the I-T Department.\u00a0<\/span><\/a><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you\u2019re paying taxes for your business, you would need the <\/span><b>ITNS 280 challan <\/b><span style=\"font-weight: 400;\">to pay the corporate tax online through the e-payment mode.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You\u2019d further need to provide essential information in the challan, such as the <\/span><b>correct PAN, address, email ID, phone number, and financial and assessment year number.\u00a0<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Additionally, you\u2019d need to select code <\/span><b>0020<\/b><span style=\"font-weight: 400;\"> (for corporate tax payment) and then make the payment via net banking.<\/span><\/li>\n<\/ul>\n<p>P.S. Want to pay Advance Tax, GST, and TDS without hopping buggy government portals and typing in your ID, password, and details over and over again?<\/p>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/x\/tax-payments\/?r=blog_cta_business_banking_corporate_tax&amp;utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Explore RazorpayX Business Banking<\/a><\/div>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">RazorpayX offers automated solutions for smooth, seamless payments. Moreover, it helps people make <\/span>advance tax payments<span style=\"font-weight: 400;\"> on time. It offers a single dashboard for advance tax, GST and TDS to facilitate smooth and seamless payments.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/razorpay.com\/x\/\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">RazorpayX<\/a> is a full-stack banking suite that supercharges the current accounts which enables:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Business Banking+ with end-to-end automation with powerful features like Automated Accounting, OTP management, Maker-Checker Flows<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automated<\/span><a href=\"https:\/\/razorpay.com\/x\/vendor-payments\/\"> <span style=\"font-weight: 400;\">Vendor Payments<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/razorpay.com\/payroll\/\"><span style=\"font-weight: 400;\">Payroll<\/span><\/a><span style=\"font-weight: 400;\"> &#8211; India\u2019s ONLY payroll with Full compliance automation, Employee Insurance management and TDS filing)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">With platforms like RazorpayX, you can supercharge and power your business banking like never before.<\/span><\/p>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/x.razorpay.com\/auth\/signup?intent=tax_payments\/?r=blog_cta_business_banking_corporate_tax&amp;utm_source=organic\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Join RazorpayX!<\/a><\/div>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently-Asked-Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\t\t\t<div id=\"rank-math-rich-snippet-wrapper\" class=\"\">\n\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\n","protected":false},"excerpt":{"rendered":"<p>Corporate tax applies to every company in India. Here&#8217;s the only guide you&#8217;ll ever need to understand corporate tax in India and how to pay it online. <\/p>\n","protected":false},"author":151156539,"featured_media":13889,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3437,3435],"tags":[3590,3587],"class_list":{"0":"post-6477","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-banking","8":"category-gst-tax-government","9":"tag-corporate-tax","10":"tag-tax-payments"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156539"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=6477"}],"version-history":[{"count":8,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6477\/revisions"}],"predecessor-version":[{"id":13891,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6477\/revisions\/13891"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/13889"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=6477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=6477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=6477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}