Income Tax Rate for Domestic/ Foreign Companies for FY 2024–25

For the assess­ment years 2025–26 the fol­low­ing income-tax rates are applicable:

Nature of Company	Assess­ment year 2025–26 Rate (%)
In the case of a domes­tic company -
- where its total turnover or gross receipt dur­ing the finan­cial year 2022–23 does not exceed Rs. 400 crore	25
- any oth­er domes­tic company	30
In the case of a for­eign company -
roy­al­ty received from Gov­ern­ment or an Indi­an con­cern in pur­suance of an agree­ment made by it with the Indi­an con­cern after March 31, 1961, but before April 1, 1976, or fees for ren­der­ing tech­ni­cal ser­vices in pur­suance of an agree­ment made by it after Feb­ru­ary 29, 1964 but before April 1, 1976 and where such agree­ment has, in either case, been approved by the Cen­tral Government	50
oth­er income	35

Sur­charge — Sur­charge is applic­a­ble at the rates giv­en below—

	If net income does not exceed Rs. 1 crore	If net income is in the range of Rs. 1 crore – Rs. 10 crore	If net income exceeds Rs. 10 crore
Domes­tic company	Nil	7%*	12%**
For­eign company	Nil	2%*	5%**

Mar­gin­al relief — In the case of a com­pa­ny hav­ing a net income exceed­ing Rs. 1 crore/ 10 crore, the amount payable as income-tax and sur­charge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore/10 crore by more than the amount of income that exceeds Rs. 1 crore/10 crore.

Health and edu­ca­tion cess — It is 4 per cent of income-tax and surcharge.

New tax regime — A domes­tic com­pa­ny can opt for new tax regime under sec­tion 115BA/115BA /115BA.

MINIMUM ALTERNATE TAX — The fol­low­ing min­i­mum alter­nate tax shall be applic­a­ble for the assess­ment years 2025–26—

If book prof­it does not exceed Rs.1 crore                                      (In %)

Nature of Company	IT	SC	HEC	Total
Domes­tic company	15%	0.00	0.60	15.60
For­eign company	15%	0.00	0.60	15.60

Note — If book prof­it of a com­pa­ny exceeds Rs.1 crore/10 Crore Sur­charge as applic­a­ble for Nor­mal Income Tax will be applic­a­ble to the MAT.