Direct Tax Code Corporate Tax Rate

Direct Tax Code: Corporate Tax Rate

Direct Tax Code will be effected in India after 2012. And it has several individual and corporate tax provisions in it.

Following are the Corporate tax provisions according to the TaxGuru.in,

01) MAT – Minimum Alternative Tax

02) Tax Rates

03) Test of Residency

04) Treaty Override

05) CFC – Controlled Foreign Corporation Provisions

06) EET (Exempt-Exempt Tax) Vs EEE (Exempt-Exempt-Exempt) regime for Savings scheme

07) Withholding tax peovisions

08) Transfer Pricing

09) Leased Assets

10) GAAR – General Anti-avoidance Rule

All of the above major 10 corporate tax rules are re-structured under new DTC. And that’s why now onwards the corporates will be able to cheat less and pay more in taxes.

Under Income Tax Act 1961, companies used to pay less in taxes via various loopholes while under DTC, most of the loopholes are abolished. This is a great news.