An analysis on topical impact of corporate tax rate in India

This article examines that" An Analysis on Topical Impact of corporate tax rate in India". With this back drop, this paper has made an attempt on Topical Impact of corporate tax rate. This paper depicts that corporate tax, Tax rate schedule, impact of corporate tax, tax evasion and tax avoidance. Tax is foremost revenue of the Government. This type of revenue is collected from Direct tax and Indirect tax basis. Corporate tax is one of the Direct taxes. A corporation tax is that tax which payable by companies at prescribed flat rates on their total income may be. However, there are different rates for different types of companies and different types of incomes. The Union Government has exclusive power to make laws relating to the corporation tax. Sometimes corporate tax rate is increases. On the time company tax burden is increased. Tax rate increases is one of the major impacts of corporate tax payment to the Government. This type of impact creates to tax evasion and tax avoidance. Tax avoidance is Legal activity but tax evasion is illegal activity. The Corporate tax rate in India stands at 33.99 percent. Corporate tax rate in India is reported by the Ministry of Finance, Government of India. From 2006 until 2013, India Corporate tax rate averaged 33.6 percent reaching an all time high of 34.0 percent in January of 2013 and a record low of 32.4 percent in January of 2011. In India, the corporate income tax rate is a tax collected from companies. Its amount is based on the net income companies obtain while exercising their business activity, normally during one business year. The benchmark we use refers to the highest rate for corporate income. Revenues from the corporate tax rate are an important source of income for the government of India.