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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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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.

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