The income-tax paid by domestic companies, and foreign companies on their income in India is corporate income-tax (CIT). The CIT is at a specific rate as prescribed by the income tax act subject to the changes in the rates in the union budget every year. A corporate is an entity that has a separate and independent legal entity from its shareholders. Domestic as well as foreign companies are liable to pay corporate tax under the Income-tax Act. While a domestic company is taxed on its universal income, a foreign company is only taxed on the income earned within India i.e. is being accrued or received in India. Corporates must understand the correct tax implications and perform a risk assessment before entering any transaction.
The provisions of TDS are very rigorous, and non-compliance of the same may lead to severe consequences. In case of non-deduction of TDS, non-payment of TDS, or default on any of the TDS compliance laws, leads to high interest and penalties. When a TDS deductor deducts tax at the time of making payment to the payee, he is also required to file a TDS return. The Income Tax Department in India makes it compulsory for the deductors to submit the quarterly TDS returns on time.
Companies have to file their tax returns in form number ITR 6 or ITR 7 as applicable, on or before October 31st every year. Further, a specific class of companies is also required to get its accounts audited and submit an auditor's report along with the tax return.