What is corporate tax in India? Know benefits, rates and more
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What is corporate tax?
Corporate tax, also known as corporation tax or company tax, is a direct tax imposed on the income or capital of corporations and similar legal entities.
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Encourages compliance:
Corporations are incentivized to maintain accurate financial records to fulfill tax obligations.
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Economic stability
Revenue generated from corporate taxes helps stabilize the economy by funding government programs.
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Fairness:
Corporations contribute to society based on their profits, ensuring a fair distribution of the tax burden.
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Discourages tax evasion:
Properly enforced corporate taxes discourage tax evasion and promote transparency.
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Investment in social welfare:
Corporate tax revenue can be used to invest in social welfare programs, benefiting society as a whole.