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.