Corporate tax

Corporate Tax Calculator India: Get Your Financial Numbers in Order!

Knowing about corporate tax and understanding the right way to pay corporate tax is not easy. You need to have the right calculator and know the amount you must pay. Along with that, if an easy online tax calculator is available, your work gets easier.

Corporate Tax Calculator India: Corporate and income tax is different; you cannot file your corporate tax as an individual if you do not have a business entity. Corporate tax is applicable for businesses located in India and abroad, those associated with trading activities within the border of this country. 

According to the Income Tax Act 1961, all business entities should file their corporate tax annually. If any company finds it problematic to file the tax all by itself, it can take help from tax specialists or agencies who have trained tax-calculating professionals. For any corporate, corporate tax includes the individual taxes of the corporate employees and the overall taxes of the corporate. So, if you are a corporate employer, you should take charge accordingly. 

How Would You Calculate Your Corporate Tax? 

Based on your business type, you need to pay the corporate tax according to the tax slabs implemented by Income Tax Department. It can be different from one company to another because a business entity can earn from different resources and have to calculate their taxes based on their earning resources only. Here, you can find some basics that can help you to calculate your corporate taxes: 

  • The Finance Ministry of India has announced a new tax slab where companies or business entities having turnover up to 400cr have to pay 22% corporate tax along with the other taxes such as surcharge and cess. So, if you use the Corporate Tax Calculator for financial numbers, you can find this slab with 25.17% tax. It means you need to pay 25.17% tax on your income if you have income from your company less than 400cr. But you can apply for some redemptions and incentives under sections 15BA, 15BAA, and 15BAB. You do not need to pay MAT or minimum alternate tax in this case. 
  • The Indian Government has an initiative, “Make in India”, designed to boost news businesses, especially manufacturing industries, to start their business in India. For new firms, Finance Ministry has some tax relaxations, and domestic companies that started their business in India after 1st Oct 2019 can pay 15% corporate tax on their income. But, you can file your corporate tax under this act if you do not apply for any incentives before 31st March 2023. For example, if you have already applied for the incentives before 2023, you have to pay 107.01% corporate tax instead of 15%. But there is no additional surcharge or cess applicable for new firms. 
  • Naturally, Indian firms can benefit more from foreign companies. The Finance Ministry of India has implemented different laws for foreign companies, depending on the company’s location. There are two different tax slabs that any foreign company can follow. If a foreign company receives any technical assistance from an Indian firm and has made an agreement before 1st April 1976, then the company has to pay a corporate tax of 50%. Still, the company’s agreement should be registered under the Government of India. 
  • Foreign companies with other income sources have to pay an additional 40% corporate tax along with a 2% surcharge. If the income is more than 10cr, the company has to pay a 5% surcharge and corporate taxes. 

So, calculating corporate taxes can be daunting, and you need to be very careful while you pay your taxes. Most corporate companies have their own accountant and can calculate their taxes to file their corporate tax. Otherwise, if you have a Start-up and cannot afford to hire an accountant, you can simply avail the Corporate Tax Calculator for financial numbers available online. 

GET YOUR CORPORATE TAX IN INDIA

Corporate Tax Calculator for Financial Numbers

Apart from the online tax calculating and filling services, you can also calculate your corporate tax on the main official website of the Income Tax Department. There is an online Corporate Tax Calculator for financial numbers available. You can enter details such as financial year, nature of taxpayer, net taxable income, surcharge, health and education cess, and income tax relief under section 87A. 

Income tax section 87A applies to all taxpayers. 

Rebate of income tax in case of certain individuals. Indian citizens business in India can avail of tax relief under this section, and individuals with income less than five hundred thousand rupees can help a rebate of 12,500 on their total tax. So, after calculating your corporate tax, if you find your tax below 12,500, you do not need to pay anything. 

However, it seems impossible because a business entity can earn more, and all corporate entities have to pay their corporate taxes on time. 

How to Calculate Your Corporate Tax? 

You can use an online tax calculator designed for the corporate tax to calculate your taxes. Make sure you must calculate your incentives before you file your taxes. You can apply for tax relaxation under the following sections: 

Under Section 115BA, 115BAA, 115BAB of the Income Tax Act, you can save your taxes. For example, if you have a manufacturing unit, you can apply for the tax relaxation under section 115BAB and pay 15% tax instead of 25% corporate tax. Similarly, companies can pay 22% corporate tax under sections 115BA and 115BAA by meeting specific criteria sketched by the income tax department. 

Conclusion 

Hence, it becomes clear how to get hold of the corporate tax calculator for financial numbers. Various slabs are available, and you can ask tax specialists about the same. Depending on a corporate’s total income, the tax can be levied. Along with that, rigorous payment methods and additional fines must be given if one does not pay the tax on time. 

You can also check out Vakilsearch as the one-stop solution for all your tax-related queries. They have an active support system that gives you the perfect information about corporate tax, tax planning and rebates if any. So you can now consult with the experts from Vakilsearch and get all your answers instantly. 

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