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Income Tax Return Filing

Do companies pay Income Tax? Well, the answer is yes, but it is called Corporate tax and not Income Tax. Now, with terminology clarity out of the way, filing corporate tax returns is no cakewalk. I mean, there is a reason why tax attorneys are the richest kinds of lawyers, right? Claiming extra tax, bifurcation of income as per the sources, categorising assets as long term and short term, keeping up with filings’ deadlines, ensuring the proper disclosure and fair reporting of income, annexing proofs and whatnot.


It can be a lot of hassle and a single, unintentional miscalculation might be penalised with heavy penalties and in some cases, even prosecution. Thus, it is better to seek assistance from experienced professionals from the very outset of the process. Below, I have answered some common queries in a precise manner to give you a sneak-peak on how we serve our clients and what we bring on the table for our potential clients.

Business Income Subject to Corporate Tax

    • Profits generated out of the business
    • Capital gains: Increase in the value of the assets like building, land and other investments like securities, etc
    • Rental income from assets: Income from leasing/renting out assets like land, machinery, etc.
    • Miscellaneous income: Dividend, Interest from bank accounts, etc

Income Tax Rates in India

For domestic companies (companies registered and having management located in India), tax rates are as given in the table below:


Applicable ProvisionCorporate Tax RateSurcharge (Charge paid on tax)
Company under S.115BA25%Net Income, 1cr to 10cr: 7%
Net Income above 10cr: 12%
Company with revenue above INR 400cr. in FY 2017-1830%Net Income, 1cr to 10cr: 7%
Net Income above 10cr: 12%
Company under S.115BAA22%10%
Company under S.115BAB15%10%
All the remaining cases30%Net Income, 1cr to 10cr: 7%
Net Income above 10cr: 12%


For foreign companies, the tax rate is 40% on all the income but 50% on the royalty received from the Indian government and any Indian entity plus a surcharge of 2% (for net income 1cr to 10cr) and 5% (for net income above 1 cr).

Benefits of Filing Corporate Tax Returns

Other than adhering to your companies legal obligations by being diligent in your taxes, few other benefits of filing timely tax returns are allowing to carry forward the losses of previous years, the fulfilment of criteria for bidding for government tenders, smooth formalities and approvals from government authorities at the time of business expansion, avoid any sort of penalty/ prosecution, timely receiving of your refunds and ample more.

USAIndiaCFO Advantage

We are a confluence of CAs and CSes having 10+ years of experience in the forte of finance and taxation. We have dealt with matters from handling return filing for small and macro scale businesses to complex tax issues for giant corporations and for High Net Worth Individuals (HNWI) including Bollywood stars, top-notch corporate executives, artists, etc. We provide comprehensive services from return filing, tax planning to tax optimisation and even handling cases at the department level.


To know more about how we will implement our optimum and innovative taxation solutions in your organization give us a call on 7727887799 (also available on WhatsApp) or drop us an email containing your business requirements at and our team will reach out to you within 2 hours.

We file your corporate taxes, along with providing a range of other services to take full accountability as the virtual CFO to your business.


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Let us discuss your requirements on a no-obligation discovery call, anytime as per your convenience.