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Tax Rates
Domestic Company
Income-tax rates applicable in case of domestic companies for assessment years 2025-26 and 2024-25 are as follows:
| Domestic Company | ||
| Assessment Year 2026-27 | Assessment Year 2025-26 | |
| ♦ Where its total turnover or gross receipt during the previous year 2022-23 does not exceed Rs. 400 crore | NA | 25% |
| ♦ Where its total turnover or gross receipt during the previous year 2023-24 does not exceed Rs. 400 crore | 25% | NA |
| ♦ Any other domestic company | 30% | 30% |
Add:
(a) Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 7% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 12% of such tax, where total income exceeds ten crore rupees. The surcharge shall be subject to marginal relief, which shall be as under:
(i) Where income exceeds Rs. 1 crore but not exceeding Rs. 10 crore, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
(ii) Where income exceeds Rs. 10 crore, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 10 crore by more than the amount of income that exceeds Rs. 10 crore
(b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.
Minimum Alternate Tax (MAT)
A domestic company is liable to pay Minimum Alternate Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 15% of 'book profit'. In such a case the 'book profit' is taken as the income of the company and it shall be liable to pay tax at the rate of 15% of such 'book profit'.
However, MAT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of a company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange.
4.1. Special Tax rates applicable to a domestic company
The special Income-tax rates applicable in case of domestic companies are as follows:
| Domestic Company | |
| ♦ Where it opted for section 115BA | 25% |
| ♦ Where it opted for Section 115BAA | 22% |
| ♦ Where it opted for Section 115BAB | 15% |
Surcharge : The rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be flat 10% irrespective of amount of total income.
Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.
MAT : The domestic company who has opted for special taxation regime under Section 115BAA & 115BAB is exempted from provision of MAT. However, no exemption is available in case where section 115BA has been opted.
[As amended by Finance Act, 2025]