Corporate income tax

1. Corporate Income Tax Corporate taxes: balancing business growth with collective progress.

2. Index • What is Corporate income tax • Income tax return • Due dates • Domestic companies • Foreign companies • Limited liability Partnership • About Mercurius • Tax exemption • Withholding tax • Corporate tax service • Due diligence service • How can Mercurius Help You • Thank You

3. What is Corporate Income Tax? • Corporate income tax is a direct tax on the profits companies make. • It applies to both listed and unlisted companies, unlike personal income tax that’s just for individuals. • It’s not like indirect taxes (such as GST), which get added to product prices and are paid by customers. • This tax is all about a company's earnings—not sales or customer payments. • Companies have to report their taxable income and file it using the right Income Tax Return (ITR) form. • The whole process involves submitting a detailed tax summary to the tax department.

4. Income Tax Return Corporate Income Tax Return (ITR)A Corporate ITR is a yearly filing that shows a company’s income, expenses, and taxes for the financial year (April 1 to March 31). It’s key for staying compliant, calculating tax dues, and reporting business activity. What to include: Financial statements for the year Total income from all sources Deductible business expenses Claimed tax credits or exemptions Net taxable income Final tax due or refund amount Filing accurate and timely ITRs is crucial to comply with tax regulations and avoid penalties.

5. Due Dates The due date for filing Income Tax Returns (ITRs) depends on the type of company, as per the Income Tax Act, 1961: Companies that are required to undergo a statutory audit under the Companies Act, 2013 must file their corporate income tax return on or before 31st October of the assessment year. For companies involved in international transactions or specified domestic transactions with associated enterprises, the deadline extends to 30th November of the assessment year. Meeting these deadlines is crucial—not only to stay compliant, but also to retain eligibility for certain deductions and avoid financial penalties.

6. Tax Rate for Domestic Companies The corporate tax rate in India differs based on the type of company and its net income. Below is a simplified overview:

7. Tax Rate for Limited liability Partnership (LLP’s) A surcharge of 12% is applicable if the total income exceeds ₹1 crore.

8. Tax Rate for Foreign Companies

9. Tax Exemption • Certain types of income—like dividends or capital gains—may be eligible for tax exemptions under the Income Tax Act • Some entities also qualify for special exemptions based on their structure or purpose • Knowing the right provisions can help reduce overall tax liability • Expert guidance can help you identify what exemptions you’re eligible for and how to claim them effectively

10. Tax litigation: Assessments & Collections • When a company files its income tax return, the Income Tax Department reviews it in detail. If there are disagreements—like disputed income, deductions, or how assets are valued for capital gains—a notice may be issued, and the company gets a chance to explain its position. • Common reasons for tax disputes: • Misreporting or underreporting income • Incorrect or inflated deduction claims • Late filing of returns • Missed or delayed tax payments • These issues can trigger penalty assessment proceedings and potentially lead to legal action if not addressed properly.

11. Litigations Related to Tax Deposits & Demand Collection Disputes Over Tax Deposits and Refund Claims It’s not uncommon for businesses to face issues when claiming tax refunds through their income tax returns. Sometimes, the entire refund isn’t granted, or only a portion gets processed—often without clear explanations from the authorities. To recover the full refund amount, companies usually need to engage in detailed discussions with the tax department. There are a couple of ways to do this: • Face-to-face or virtual meetings • Through the official online tax portal

12. Tax Planning Strategies Smart Tax Planning for Businesses Good tax planning isn’t just about crunching numbers—it’s about being strategic. Companies can lower their tax burden legally by taking advantage of things like deductions, exemptions, and tax credits, all while staying fully compliant with the law. Here are a few smart moves businesses often make: • Investing in tax-saving tools – Think government-approved schemes and financial instruments that offer tax benefits. • Making the most of depreciation –Timing and structuring asset purchases to optimize depreciation can lead to big savings. • Claiming all eligible deductions – From business expenses to employee benefits, every deduction counts.

13. Withholding Tax • Applicability: Applies to payments like salaries, interest, rent, and royalties. • Credit Claims: Tax deposits reflected in the portal form the basis for claiming tax credits. • Rates: Vary based on payment type and whether the payee is a resident or not. • Compliance: Taxes must be deducted and deposited on time to avoid penalties. • Reporting: Income payers report withheld taxes in their returns. • Tracking: Companies can view these reports on their tax portal account.

14. Corporate Tax Services At Mercurius, our corporate tax services are designed to help businesses reduce their tax burden while staying fully compliant with all regulations. Here’s what we offer: Corporate Tax Planning: We create tailored tax strategies that help businesses make the most of available deductions and incentives, all while minimizing their overall tax liability Corporate Tax Compliance: From accurate filings to thorough reviews of financial statements, our team ensures your business stays compliant with all tax laws and deadlines—no surprises, no last-minute rush. Income Tax Accounting: Our tax professionals deliver timely and accurate income tax accounting services, so you can stay on top of your obligations without the stress. Audit Assistance: Our team works closely with auditors to simplify the process, ensure compliance, and keep your business running smoothly.

15. Expert Corporate Tax Services Delivered by Mercurius At Mercurius, our team specializes in issuing a wide range of certificates required by government authorities, banks, and other regulatory bodies. These include: • Capital contribution certificates • Gross turnover certificates • Debt aging reports • Closing stock certificates • Profitability and net worth certificates We also support corporate mergers and acquisitions by issuing essential documents like Fair Value Certificates for shares and share transactions (including buy-backs, allotments, and more). • In addition, our experts in tax and FEMA compliance assist with issuing certificates as required under Income Tax, GST, FEMA, STPI, and other regulatory frameworks. All certificates are provided in the prescribed formats accepted by the respective authorities, ensuring smooth and hassle-free compliance.

16. Due Diligence Service We carry out in-depth due diligence on corporate tax matters and potential disputes, helping clients identify risk areas, strengthen the accuracy of financial reporting, and ensure full transparency in tax compliance. Our goal is to prepare you for any tax-related challenges—before they become a problem. International Tax AdvisoryWe offer expert tax planning and advisory services to businesses with global operations, helping them navigate the complexities of international tax laws and stay compliant across multiple jurisdictions.

17. About Mercurius Mercurius is a broad based professional services firm with clientele in 60+ countries, assisting foreign companies with the easy set up and functioning of their businesses in India. With a thorough knowledge of Indian regulatory structures as well as international expectations, we specialize in: Company incorporation and structuring Regulatory and tax compliance Nominee directors and local representation solutions Ongoing advisory and post-incorporation support We are trusted for our reliability, confidentiality and dedication to simplifying entry into India.

18. How Can Mercurius Help You? 01 Tailored Approach 02 Unmatched Client Support 03 CostEffectiveness 04 15+ yrs Cross Border Experience

19. Thank You Mercuriusteam.com info@mercuriusteam.com +91 96677 79615