Income Tax Rates for Domestic and Foreign Companies:

Income Tax Rates for Domestic and Foreign Companies Indian taxes are separated into two types: direct taxes and indirect taxes. Direct taxes are levied on the income earned by various sorts of business entities over the course of a financial year. There are various sorts of taxpayers registered with the Income Tax Department, and each pays taxes at a different rate. For example, an individual and a firm both pay taxes, but not at the same rate. Finance Minister Nirmala Sitharaman in Budget 2024 proposes lowering the corporate tax rate for international enterprises from 40% to 35%.

Income Tax Rates for Domestic Companies [AY 2025-26]

Particular	Domestic Company	(Tax + Surcharge) + Cess
Income	Rs.0-Rs.1 Crore	(30% + 0) + 4%
	Rs.1-Rs.10 Crore	(30% + 7%) + 4%
	Above Rs.10 Crore	(30% + 12%) + 4%

*Tax Rate of 25% is applicable for Turnover upto Rs.400 Crore immediately preceding AY 2025-26.

Concessional Tax Rate	(Tax + Surcharge) + Cess
U/S 115 BAA	(22% + 10%) + 4%
U/S 115 BAB	(15% + 10%) + 4%

*Flat Rate of Surcharge is applicable in respect of Income.

Income Tax Rates for Foreign Companies [AY 2025-26]

Particular	Foreign Company	(Tax + Surcharge) + Cess
Income	Rs.0-Rs.1 Crore	(35% + 0%) + 4%
	Rs.1-Rs.10 Crore	(35% + 2%) + 4%
	Above Rs.10 Crore	(35% + 5%) + 4%