Income Tax Services

Resident Companies
According to the Income Tax Law, the Indian resident companies have been made legally responsible to be taxed at 33.66 per cent on net basis. Moreover, companies have also been regulated to pay dividend distribution tax (DDT) at 14.025 per cent on the amount of profits distributed to shareholders.

Non-resident Companies
On the other hand, the Non-resident companies have been made accountable legally to tax at 41.82 per cent on net basis. Such companies may perhaps be taxed on a gross basis or on a presumptive basis in certain cases. Though, income from long-term capital gains might well have to pay at the rate of 20.91 per cent.

Kinds of Taxes
Annual Tax
An annual tax is charged on income earned, for a financial year, as per the rates mentioned by the annual budget. The rates tend to be different with each budget. The annual tax is generally paid in advance through quarterly instalments at some point in the financial year. The quarters may also show a variation according to the taxpayer involved.

Minimum Alternate Tax (MAT)
The domestic tax law has been made in the way to entail companies to pay MAT in lieu of the usual corporate tax, where the usual corporate tax is lower than the MAT. MAT gets calculated on the book profits; at the rate of 8.415 per cent for domestic companies and 7.841 per cent for non-resident companies.

Dividend Distribution Tax (DDT)
The tax payable on the dividend declared, distributed or paid is called as DDT. Dividends at present get exemption from being taxed in India. However, the company paying the dividends has been made liable to pay DDT at the rate of 14.025 per cent on the sum of dividends declared.