Income tax is levied only at the level of the  Central Government and not at the State level. The administration of income tax is under the Central Board of Direct Taxes. The tax year is from April 1st to March 31st. Tax returns are to be filed annually by September 30th of each year. However, corporate tax liability has to be estimated and paid on a quarterly basis, on the 15th of March, June, September and December.

      Corporations that are resident in India are taxed on their worldwide income from all sources, regardless of the resident/non-resident status of its shareholders. A corporation is deemed to be resident in India if is either (i) incorporated in India (ii) its management and control is in India.

      Corporations that are non-resident are taxed on income earned from a business connection in India or from other India sources.