Question

Identify the tax system that India follows for taxing the Indian companies.

• A. Proportional taxation system
• B. Progressive taxation system
• C. Regressive taxation system
• D. Goods and services taxation system

Answer 1

The correct option is B Progressive taxation system

The tax slabs for Indian companies are as follows: 25% for a turnover of less than ₹50 crore and 30% for a turnover of more than ₹50 crore. With an increase in profit, the tax rate increases. This is referred to as the progressive taxation system. This system is also followed for the income tax of an individual.