Taxability in India
Tax incidence of a company depends on the residential status of the company, i.e., whether the company has been incorporated in India or its place of effective management lies in India.
Key tax incentives in India
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Export Promotion Applicability: SEZ units operational before 1st April 2020 Incentive: Deduction of 100% of profits and gains derived from export business for first 5 years of commencement, 50% of profits and gains derived from export business for next 5 years, 50% of ploughed-back profits and gains from export business for next 5 years. |
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Research & Development Applicability: Companies in respect of any expenditure on R&D in an approved in-house facility Incentive: Weighted tax deduction of 200% granted to companies Validity: 31st March 2020 |
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Investment-linked Incentive: To incentivise investment in certain sectors, any capital expenditure incurred for specified business is allowed as a deduction in the year in which it is incurred |
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Startup India Scheme Incentive: Tax incentives granted to eligible start-ups are the tax holiday for any consecutive 3 years (from initial 5 years) in respect to 100% of their profits, including fast-tracking of patent applications with 80% rebate. |
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International Financial Services Centre Applicability: Caters to customers outside the jurisdiction of the domestic economy. Such centres deal with flows of finance, financial products and services across borders Incentive: Tax concessions on capital gains, Minimum Alternate Tax and Divident Distribution Tax. |
