FreeComplianceIncome tax rates for companies in India
A domestic company in India can choose between the normal tax regime, with exemptions and deductions, and a concessional regime at 22% without most of them. For most new private companies, the concessional regime is simpler and cheaper.
The rates
| Regime | Base rate | Surcharge | Effective rate incl. 4% cess (approx.) |
|---|---|---|---|
| Concessional regime (formerly Section 115BAA) | 22% | 10% flat | 25.17% |
| Normal regime, turnover up to ₹400 crore | 25% | 7% above ₹1 crore income, 12% above ₹10 crore | 26%–29.12% |
| Normal regime, turnover above ₹400 crore | 30% | 7% / 12% | 31.2%–34.94% |
Under the concessional regime, Minimum Alternate Tax does not apply, but you give up deductions such as the startup tax holiday and certain incentive deductions. Under the normal regime, MAT at 14% of book profit is a final tax from tax year 2026-27. See MAT.
How to choose
- If you claim no special deductions, the concessional regime is almost always better.
- If you are a DPIIT startup claiming the three-year tax holiday, compare carefully before opting in. See startup tax holiday.
- Once opted for, the concessional regime cannot be withdrawn for later years.
Frequently asked questions
This guide is general information, not legal advice. Government fees and procedures change; confirm current figures before you file.
- Advance tax for companies: due dates and interest
When a company must pay advance tax, the four instalment dates and percentages, and interest for shortfall or delay.
- Minimum Alternate Tax (MAT) for companies explained
MAT from tax year 2026-27: 14% final tax under the old regime, how existing MAT credit can be used, and who is outside MAT.
- ITR-6: filing a company's income-tax return
Who files ITR-6, due dates, what information it needs, digital signature requirement, and consequences of late filing.