Corporate Taxation in India
The amount of Corporation Tax i.e. the income tax paid by the companies is a significant contribution from the corporate sector to the Indian exchequer. The rates of Income tax on companies, both private and public, are very high and constitute a major portion of the total spending of a company. Thus, a careful study of taxes influencing the business decisions and financial policies is of great importance in view of the constantly increasing burden of taxation placed upon corporate sector. The most important effect of taxation upon the corporate financial policy is its direct influence on the sources of financing. Finding out the influence of tax on corporate debt policies forms the basis for this book. During the recent years of high corporate tax rates, it is observed that most of the companies in India have been relying heavily on debt capital for meeting their capital requirements.
The usual argument put forth for such discrimination in favour of debt financing stems primarily from the fact that interest payments on indebtedness are recognised as deductible expenses in computing taxable profits, whereas dividends on equity capital are not. The present study Corporate Taxation in India has been undertaken to examine the impact of tax on corporate capital structure financing in the private sector. Based on the data of some corporate enterprises and using various statistical techniques, it reveals that capital structure financing is influenced not only by the corporation tax but also by the interest and demand variable.
This book will be of immense help to teachers, scholars and students of commerce, management, economics, industrialists, tax consultants, taxation authorities, various
financial institutions, banks and also to the policy makers.
| Common | |
| Author | Jagannath Panda, P. Venkateswar |
| Binding | Hardcover |
| Edition | 1 |
| ISBN | 81-7132-039-2 |
| Language | English |
| Number Of Pages | 132 |
| Publication Year | 1991 |
| Publisher | Pointer Publishers, Jaipur |