Corporation Tax or Corporate Tax is a direct tax levied on the internet income or earnings of a company entity from their business, foreign or domestic.
The fee at which the tax is imposed as per the provisions of the Income Tax Act, 1961 is known as the Corporate Tax Rate.
Example. XYZ Corporation has earned a net income of $50,000 for the duration of the present day economic year. The corporation is allowed up to $5000 in deductions. The applicable agency tax fee is 21%.
Domestic Corporate Entity with a turnover up to Rs 250 Cr is dependable to pay 25% of company Tax. For a Financial year, if the complete income generated with the aid of a organization is above 1 crore, then a surcharge company tax is 5% on such a corporation. Domestic Corporation is also accountable to pay Health and Educational Cess at 4%.
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