The present study focuses on the aspect of corporate capital structure and attempts to highlight the importance the tax factor has in shaping the vital financial decisions of a corporation, particularly a big one. Corporate Capital structure has been a realm of utmost importance for the tap management. The role which, finance plays in the overall making of a firm is undoubtedly crucial, but the critical part which the tax plays in the performance of the finance function by an enterprise is of no less significance in any way, though it has hitter to been fully appreciated.