Direct Tax

India’s taxation system is among the more complex systems globally and is constantly being updated to account for changes in the economy and policy. The system remains prone to delays and inefficiencies as well as substantial tax burdens for a misstep or lack of knowledge. There are additional restrictions on foreign nationals and companies, as well as international transactions between group companies.

Sectors of Direct Tax

  • checkTax audits
  • checkIncome tax returns
  • checkInternational and NRI Taxation
  • checkTDS Compliances and Scrutinises
  • checkOther Direct tax consultancy
  • checkAssessments and Scrutinises
  • checkTax Planning and Advisory
At present, a company operating in India may need to pay three kinds of direct taxes – Corporate Taxes, Minimum Alternative Tax (MAT), and Dividend Distribution Tax (DDT). These are the broad guidelines for these taxes –

Corporate Tax 
For a domestic company, the prevailing tax rate is 30% (or 25% for SMEs). In addition to this, a surcharge may apply (based on the company’s profit levels) and a cess of 4% applies to all companies (irrespective of profit levels). Foreign companies are required to pay a basic tax rate of 40% (plus surcharge and cess).


Minimum Alternate Tax 
Because of the differences between calculation of accounting profit and taxable profit, the Government introduced MAT which is applicable on book profits (if they exceed tax profits). The MAT rate is currently 18.5% of the book profits plus surcharge and cess. Every entity would need to pay the higher of corporate tax or MAT.


Dividend Distribution Tax
DDT is a tax payable by domestic companies on the dividend that they pay out, since that dividend is tax free in the hands of the shareholder. On the other hand, if a shareholder receives dividend from a foreign company, he or she is liable to pay tax on it. The current DDT rates are 15% on dividend amount, plus surcharge and cess.