Income Tax Rates for Domestic and Foreign Companies

Budget 2024 proposes Income Tax Rates for Domestic and Foreign Companies.

Tax Rates for Domestic and Foreign Companies

Reetu | Aug 12, 2024 |

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]

ParticularDomestic Company(Tax + Surcharge) + Cess
IncomeRs.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]

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

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