Q. How taxation works under Section 8 company?

Taxation over section 8 company is treated at par with other companies. The profits are taxes @30%. However, if section 8 company is registered under section 12AA (tax exemption) of the income tax act, then Section 8 profit is completely exempt and no tax is levied on the company.

However, certain compliances is to be made every year to continue enjoying the tax exemption.