Corporate Tax Reforms In India: A Legal Study Of Their Evolution And Impact
Jermy Sudhanthira J, Assistant Professor, Department of Law,Dr. M.G.R Educational and Research Institute, Madhuravayol, Chennai.
ABSTRACT
Corporate taxation has long been an important component of India's fiscal framework, serving not only as a major source of government revenue but also as a mechanism to promote economic development and regulate corporate activities. Over the years, India's corporate tax system has undergone significant transformation in response to changing economic conditions, globalisation, and evolving business practices. From the post- independence taxation regime to contemporary reforms aimed at improving ease of doing business, the legal framework governing corporate taxation has continuously adapted to meet new challenges. This article examines the evolution of corporate taxation in India from a legal perspective, highlighting key legislative reforms, policy changes, and judicial developments that have shaped the present tax regime. It explores the role of the Income-tax Act, 1961, and its subsequent amendments in restructuring corporate tax obligations, simplifying compliance procedures, and addressing issues related to tax avoidance and revenue administration. The study also discusses the growing influence of international tax standards, including the OECD's Base Erosion and Profit Shifting (BEPS) framework, and the challenges posed by the digital economy. Using a doctrinal research methodology, the article analyses whether recent reforms have effectively balanced the interests of the State in revenue collection with the need to create a business- friendly tax environment. The study finds that while substantial progress has been made in enhancing transparency and attracting investment, concerns relating to legal complexity, tax disputes, and enforcement continue to remain. The article concludes that continuous legal and policy reforms are necessary to ensure a fair, efficient, and globally competitive corporate tax system in India.
Keywords: Corporate Taxation, Income Tax Act, Tax Reforms, Corporate Tax Law, Tax Administration, BEPS.
