A company will be liable for the following taxes:
(a) Income Tax/Minimum Alternate Tax – This tax shall be payable by the company when the company is having taxable income in a particular financial year. Minimum Alternate Tax is a provision to limit tax exemptions availed by companies, so that they pay at least a minimum amount of corporate tax to the government. MAT is calculated at the book profit as per Section 115JB of Income Tax Act, 1961.
(b) Capital Gains Tax – The tax levied on any profit or gain that arises from the sale of a capital asset is known as capital gains tax and shall be payable as and when there is capital gain on sale of capital asset.