Corporate Tax Filing in India — Complete Guide for Companies

Every company registered in India — whether a Private Limited Company, Public Limited Company, One Person Company, or a foreign company — is required to file an Income Tax Return each year. Corporate tax compliance is far more structured than individual tax filing and involves multiple forms, deadlines, audit requirements, and regulatory filings. Whether your company operates out of Mumbai, Noida, Bangalore, or Banda — this guide walks you through corporate tax filing in India comprehensively.

1. What is Corporate Tax in India?

Corporate tax (also called Company Tax) is the tax levied on the net profits of companies registered under the Companies Act, as computed under the Income Tax Act. Every domestic company and foreign company with income accruing in India is liable to pay corporate tax on its profits.

Corporate tax is a direct tax paid annually by the company on its taxable income. The tax is distinct from GST (which is an indirect tax on transactions). Companies also have TDS obligations, advance tax obligations, and are subject to statutory audit of their accounts before filing the ITR.

2. Corporate Tax Rates in India

The applicable corporate tax rates for domestic companies (before surcharge and cess) are as follows:

Category	Base Tax Rate	Conditions
New manufacturing companies (Section 115BAB)	15%	Set up and manufacturing commenced on/after 1 October 2019; no other exemptions/incentives claimed
New domestic companies (Section 115BAA)	22%	Opting for concessional rate; no specified exemptions claimed; no MAT applicable
Other domestic companies — turnover up to ₹400 crore	25%	Previous year's total turnover/gross receipts ≤ ₹400 crore
Other domestic companies — turnover above ₹400 crore	30%	Previous year's total turnover/gross receipts > ₹400 crore
Foreign companies	40%	On income accruing or arising in India

Surcharge: Applicable at 7% (net income ₹1–10 crore) or 12% (net income above ₹10 crore) for domestic companies. For companies opting for Section 115BAA/115BAB, surcharge is capped at 10%.

Health & Education Cess: 4% on tax plus surcharge for all companies.

3. ITR-6 — The Corporate Income Tax Return

All companies (domestic and foreign) except those claiming exemption under Section 11 (charitable and religious trusts) must file their Income Tax Return in Form ITR-6. Key features of ITR-6:

• Must be filed electronically using a Digital Signature Certificate (DSC) of a director.
• Includes detailed schedules for profit & loss, balance sheet, capital gains, depreciation, deductions, and tax computation.
• Requires disclosure of related party transactions, details of foreign assets/liabilities, and MSME dues outstanding.
• The return must be accompanied by a statutory audit report (Form 3CA and 3CD for companies requiring tax audit).
• Companies with international transactions must also file Form 3CEB (Transfer Pricing Report) before the ITR.

4. Minimum Alternate Tax (MAT)

Companies that enjoy multiple exemptions and deductions often end up with zero or very low taxable income. To ensure such companies pay at least a minimum amount of tax, the Minimum Alternate Tax (MAT) provisions under Section 115JB apply.

How MAT Works:

• MAT is calculated at 15% of Book Profit (net profit as per Companies Act financial statements, with certain adjustments) plus applicable surcharge and cess.
• If the regular tax liability (computed as per normal provisions) is lower than MAT, the company must pay MAT instead.
• The excess of MAT paid over normal tax is called MAT Credit, which can be carried forward and set off against regular tax in subsequent years (up to 15 years).
• Companies opting for Section 115BAA (22% tax regime) and Section 115BAB (15% for new manufacturers) are exempt from MAT.

5. Key Deductions & Allowances for Companies

Companies can claim various deductions to reduce their taxable income:

Business Expense Deductions (Section 30–37):

• Rent, repairs, and insurance on business premises and assets.
• Depreciation on plant, machinery, buildings, and intangibles under the block-of-assets method.
• Employees' salaries, provident fund contributions, and ESI contributions.
• Interest on loans borrowed for business purposes.
• Expenditure on scientific research (Section 35) — weighted deduction in certain cases.
• Expenditure on skill development and CSR may have specific treatment.

Chapter VI-A Deductions (selected applicable ones):

• Section 80G: Donation to approved charitable institutions (for companies not opting for new tax regime).
• Section 80JJAA: 30% additional deduction on additional wages paid to new employees in manufacturing for 3 years.
• Section 80IC/80IE: Profit-linked deductions for units in specified hill states and northeastern states.
• Section 80LA: Deductions for offshore banking units and IFSC units.

Carry Forward of Losses:

• Business losses can be carried forward for 8 years (condition: ITR filed on time).
• Unabsorbed depreciation can be carried forward indefinitely.
• Capital losses: Short-term capital loss can be set off against any capital gain; long-term capital loss only against long-term capital gains — both can be carried forward for 8 years.

6. Advance Tax for Companies

Companies must estimate their annual tax liability and pay it in advance in four instalments:

Instalment	Due Date	Cumulative % to be Paid
1st Instalment	15th June	At least 15% of estimated annual tax
2nd Instalment	15th September	At least 45% of estimated annual tax
3rd Instalment	15th December	At least 75% of estimated annual tax
4th Instalment	15th March	100% of estimated annual tax

Shortfall in advance tax payment attracts interest under Section 234B (1% per month on shortfall) and Section 234C (1% per month per instalment shortfall). Companies should ensure proper advance tax computation to avoid unnecessary interest costs.

7. Annual Corporate Tax Compliance Calendar

Compliance	Form / Document	Standard Deadline
Statutory Audit of Accounts	Audit Report under Companies Act	Before AGM (typically September 30)
Tax Audit Report	Form 3CA + Form 3CD	31st October (assessment year)
Transfer Pricing Report (if applicable)	Form 3CEB	31st October (assessment year)
Income Tax Return (ITR-6)	Filed online with DSC	31st October (assessment year)
Annual ROC Filing (AOC-4, MGT-7)	MCA Portal	Within 60/60 days of AGM
TDS Returns (quarterly)	Form 24Q, 26Q, 27Q	31 days after end of each quarter
GST Annual Return	GSTR-9	31st December (next financial year)

8. Penalties for Corporate Tax Non-Compliance

• Late ITR Filing (Section 234F): ₹5,000 (income up to ₹5 lakh: ₹1,000).
• Interest for Late Payment (Section 234A): 1% per month on unpaid tax from due date of filing.
• Interest for Short Payment of Advance Tax (Section 234B): 1% per month on 90% shortfall of tax.
• Non-filing of Audit Report (Section 271B): 0.5% of turnover, minimum ₹1.5 lakh.
• Concealment of Income (Section 271(1)(c)): 100% to 300% of tax evaded.
• Under-Reporting of Income (Section 270A): 50% of tax on under-reported income (200% in case of misreporting).
• TDS Default (Section 201): Interest at 1%–1.5% per month on TDS not deducted/deposited, plus penalty.