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Corporate tax

India Corporate Tax Calculator

Enter taxable income to compute corporate tax under the normal 25%/30% rates and the 22% concessional regime side by side, with surcharge, marginal relief, cess and MAT. The four advance tax instalments and the return due date come with it.

Statutory rates as of 1 Apr 2026FY 2026-27 (Apr 2026 – Mar 2027)Tax year 2026-27

Inputs

Company and taxable income

Enter total income after tax adjustments and set-off of brought-forward losses.

Company type

Total income after adjustments. Rounded to the nearest ₹10.

Base-year turnover up to ₹400 Cr

Turnover in Tax Year 2024-25: on for 25%, off for 30%

Your inputs are in the address, so this link reopens the same calculation.

How the tax is built up

Rate, then surcharge, then marginal relief, then cess; compared with MAT; then any credit set-off. The final amount is rounded to the nearest ₹10 (s.516 (formerly s.288A/288B)).

How the tax is built up
ItemNormal rate22% regime
Tax at the rate₹1,25,00,00025%₹1,10,00,00022%
Surcharge₹8,75,0007%₹11,00,00010%
Health and Education Cess₹5,35,0004%₹4,84,0004%
Normal tax₹1,39,10,000₹1,25,84,000
Tax payable₹1,39,10,000≈ $143,829.40₹1,25,84,000≈ $130,118.56
How the tax adds up: 22% regimeBars start from tax at the rate, add surcharge and cess, and take away any relief or credit.Tax at the rate: ₹1,10,00,000₹1.10 CrTax atthe rateSurcharge: ₹11,00,000₹11.00 LSurchargeHealth and Education Cess: ₹4,84,000₹4.84 LHealth andEducation CessNormal tax: ₹1,25,84,000₹1.26 CrNormaltaxTax payable: ₹1,25,84,000₹1.26 CrTaxpayable

MAT check

A company on the normal rate pays the higher of normal tax and 14% of book profit (MAT, s.206(1) (formerly s.115JB)). From tax year 2026-27 MAT is a final tax: what is paid over normal tax does not come back as credit.

Book profitassumed equal to taxable income
₹5,00,00,000
MAT incl. surcharge and cess · 14%
₹77,89,600
Normal tax incl. surcharge and cess
₹1,39,10,000

Normal tax is higher, so MAT does not bite.

MAT does not apply to the 22% regime.

For reference: 15% new manufacturing regime (s.201 (formerly s.115BAB))
Only companies set up on or after 1 Oct 2019 that began manufacturing by 31 Mar 2024 qualify, so no new company can enter. For a company already in it, treating all of this income as manufacturing income at 15% plus 10% surcharge and cess gives ₹85,80,000 (effective 17.16%). Non-manufacturing income is taxed at 22%.
Paying dividends to a foreign parent
Dividends paid to a foreign parent after corporate tax bear withholding tax at the shareholder level: 20% under Indian law, or a lower treaty rate with a tax residency certificate and the other conditions (15% under the India–Korea treaty, for example). Dividend distribution tax ended in April 2020.

Advance tax instalments

₹1,25,84,000, the lower-tax regime's annual tax less TDS/TCS, split by the statutory cumulative percentages (s.408 (formerly s.211)). No advance tax is due below ₹10,000 (s.404 (formerly s.208)).

Advance tax instalments
InstalmentDue byCumulativePay this instalment
No. 115 Jun 2026No interest on this instalment if at least 12% is paid15%₹18,87,600≈ $19,517.78
No. 215 Sept 2026No interest on this instalment if at least 36% is paid45%₹37,75,200≈ $39,035.57
No. 315 Dec 202675%₹37,75,200≈ $39,035.57
No. 415 Mar 2027100%₹31,46,000≈ $32,529.64

A short instalment attracts interest under s.425 (formerly s.234C): 3% for each of the first three and 1% for March. If less than 90% of the assessed tax is paid by 31 March, s.424 (formerly s.234B) adds 1% a month from April. This calculator does not compute interest.

Return due dates (ITR-6)

Due dates for the Tax Year 2026-27 corporate tax return (s.263(1) (formerly s.139(1))).

Company without a transfer pricing report
31 Oct 2027
Company with a transfer pricing report (s.172 (formerly s.92E))
30 Nov 2027
Revised return, latest
31 Mar 2028
Twelve months from the end of the tax year at the latest, or earlier if the assessment is completed first.

The 22% regime (s.200 (formerly s.115BAA)) is opted for in the return by this due date (Income-tax Rules, 2026 Rule 136), and the choice cannot be withdrawn.

Assumptions

What the figures above take for granted.

  • The taxable income entered is total income after tax adjustments and loss set-off.
  • Only ordinary business income is computed. Income taxed at special rates (capital gains, dividends, royalties and the like), the 9% MAT for IFSC units and the 25% option for manufacturers set up after 2016 (old s.115BA, new s.199) are out of scope.
  • The normal rate turns on Tax Year 2024-25 turnover. A company that existed that year is within ₹400 Cr even with no turnover. The law has no specific rule for a company not yet incorporated in that year, but in 2025 the Income Tax Appellate Tribunal (ITAT) held that a lower rate structured the same way in the Finance Act, 2017 applies only to a company in existence in the base year. Such a company is safer computing at 30% by switching the turnover option off.
  • The 22% regime is computed on the same taxable income. In reality income rises by the deductions and incentives given up.
  • The recommendation compares this year's tax only; multi-year effects such as irrevocability and lost credit are not modelled.
  • The 15% figure is a reference for companies already in that regime, treating all income as manufacturing income.
  • No book profit was entered, so MAT is computed as if book profit equals taxable income.
  • MAT and normal tax are compared on totals including surcharge and cess, and the higher is payable. No return form has been notified yet for tax years under the Income-tax Act, 2025, so the method of the FY 2025-26 form (ITR-6) is assumed.
  • Advance tax is based on the lower-tax regime, less TDS/TCS. Interest under s.424 (formerly s.234B) and s.425 (formerly s.234C) is not computed.
  • Twelve months from the end of the tax year is the latest date for a revised return; it ends earlier if the assessment is completed first.

How Indian corporate tax works in practice

Indian corporate tax is not one rate times profit. The regime a company has chosen, its turnover two years earlier, surcharge and marginal relief by income band, MAT on book profit and advance tax paid in four instalments during the year all interact. The Income-tax Act, 2025 renumbered the sections from April 2026, and the Finance Act 2026 turned MAT into a final tax. What follows is what you need to read the calculator's result.

Four rates: 25/30%, 22%, 15% and 35%

Indian corporate tax is not a ladder of rising bands. A single rate applies according to the type of company and the regime it is in; once taxable income passes ₹1 crore, surcharge is added on the whole tax; and finally a 4% Health and Education Cess is charged on tax plus surcharge.

A domestic company's normal rate turns on turnover two years earlier. For FY 2025-26 the base year is PY 2023-24 and for tax year 2026-27 it is tax year 2024-25: turnover of up to ₹400 crore means 25%, anything above means 30%. Surcharge is 7% once taxable income exceeds ₹1 crore and 12% above ₹10 crore. In effective terms a 25% company pays 26%, 27.82% or 29.12%, and a 30% company 31.2%, 33.384% or 34.944%.

There are two concessional regimes. One gives up deductions and incentives in exchange for a flat 22% (s.200, formerly s.115BAA); the other is a 15% rate for new manufacturing companies set up after September 2019 (s.201, formerly s.115BAB). Both carry a flat 10% surcharge whatever the income, so 22% works out at 25.168% and 15% at 17.16%. A foreign company taxed through an Indian branch or PE pays 35% plus 2% or 5% surcharge, 36.4% to 38.22% in all.

A further 25% option exists for manufacturers set up after February 2016 (s.199, formerly s.115BA). It only matters to manufacturers with turnover above ₹400 crore, so this calculator does not cover it.

What the 22% regime gives up

The 22% regime is not just a lower rate. In return, the company forgoes incentives. For FY 2025-26, income is computed without incentives such as the SEZ deduction (s.10AA), additional depreciation (s.32(1)(iia)) and weighted research deduction (s.35(2AB)), and without any Chapter VI-A deduction other than s.80JJAA and s.80M. Under the 2025 Act the same exclusion covers Chapter VIII other than s.146 and s.148, and depreciation rates are capped at 40% (Income-tax Rules, 2026 Rule 25(2)).

The option is exercised by the return due date and cannot be withdrawn. In exchange, MAT does not apply. A company that opted under the 1961 Act carries on in s.200 without any new filing (Income-tax Act, 2025 s.536(2)(f)), and from tax year 2026-27 the option is exercised in the return itself.

So the comparison does not end at which rate is lower on the same income. Income under the 22% regime rises by the deductions given up, and any MAT credit is affected too. This calculator applies both regimes to the same taxable income, so a company with large deductions or incentives should run it again with those amounts added back.

MAT became a final tax from tax year 2026-27

Minimum Alternate Tax makes a company on the normal rate pay a set share of its book profit when its normal tax would be lower. For FY 2025-26 the rate is 15% of book profit (old s.115JB), and the excess over normal tax became credit, set off within 15 years in a year when normal tax exceeded MAT.

The Finance Act 2026 changed that. From tax year 2026-27 the MAT rate falls to 14% (s.206), but what is paid is a final tax and no new credit arises. Credit built up to 31 March 2026 can be used only by a domestic company that opts for the 22% (or 15%) regime, up to 25% of that year's tax; a domestic company that stays on the normal rate cannot use it. A foreign company sets it off in a year when normal tax exceeds MAT, up to the difference.

Under the old law, opting for 22% extinguished MAT credit; under the new law, opting for 22% is the only way a domestic company can use it. For a company with a large balance, the year it moves makes a real difference. Enter the balance under optional inputs and the calculator applies the rule for the year you pick.

Surcharge thresholds and marginal relief

Surcharge applies to the whole tax, not just the part above the threshold. Left alone, income just over ₹1 crore would add lakhs of rupees of tax, so the law gives marginal relief: tax plus surcharge above a threshold may not exceed tax plus surcharge at the threshold plus the income above it.

Take a 25% company with taxable income of ₹1.01 crore. Tax plus surcharge is ₹27,01,750, but the cap is ₹25,00,000 of tax on ₹1 crore plus the ₹1,00,000 of income above it: ₹26,00,000. The ₹1,01,750 difference is marginal relief, and with 4% cess the final tax is ₹27,04,000. Relief continues until taxable income reaches about ₹1.024 crore.

Cess gets no marginal relief, and the flat 10% surcharge in the 22% and 15% regimes has no bands and so no relief either. MAT uses the same surcharge table and marginal relief, measured on book profit.

Advance tax: four instalments a year

An Indian company does not pay the year's tax in one go when it files the next year. If advance tax after TDS and TCS is ₹10,000 or more, it pays 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March, cumulatively (s.408, formerly s.211).

Paying short costs interest. Each short instalment attracts 3% for the first three and 1% for March (s.425, formerly s.234C), with no interest on the June or September instalment if at least 12% or 36% has been paid. If less than 90% of the assessed tax is paid by 31 March, 1% a month is added from April (s.424, formerly s.234B).

Systems with a single mid-year prepayment, such as Korea's interim corporate tax payment, collect only part of the year's tax in advance; India collects nearly all of it in four steps within the year. If the profit outlook changes, the next instalment simply catches up the cumulative amount.

Return due dates: FY 2025-26 extended to 21 November

The corporate tax return is ITR-6. For FY 2025-26 (assessment year 2026-27) the statutory due date is 31 October 2026, but CBDT Circular No. 07/2026 of 28 September 2026 moved it to 21 November 2026 for companies without a transfer pricing report, and the tax audit report to 21 October 2026. Companies with a transfer pricing report (old s.92E) keep 30 November 2026.

From tax year 2026-27, s.263(1) of the Income-tax Act, 2025 sets the dates: 31 October 2027 for a company without a transfer pricing report (s.172) and 30 November 2027 for one with it. A revised return may be filed up to twelve months after the tax year ends (31 March 2028), or until the assessment is completed if that comes first.

The 22% regime must be opted for by the due date to apply for that year. Miss it, and that year's return is filed at the normal rate.

Subsidiary or branch: how the tax differs

How you operate in India changes the rate. An Indian subsidiary (a private limited company) is a domestic company and can use 25%, 30% or the 22% regime. A foreign company operating directly through a branch or PE pays the foreign company rate of 35% plus 2% or 5% surcharge, and cannot choose a concessional regime.

There is no separate income tax on remitting branch profit to head office. A subsidiary pays a lower rate, but its dividends to a foreign parent bear withholding tax: 20% under Indian law, or a lower treaty rate with a tax residency certificate and the other conditions; the India–Korea treaty rate, for example, is 15%. Dividend distribution tax ended in April 2020 and shareholders are now taxed instead.

Put corporate tax and dividend withholding together and the gap between the two structures is smaller than the headline rates suggest. Which is better depends on how much profit goes home and how much foreign tax credit the parent can claim.

If you are used to another country's corporate tax

The tax year is fixed. Many countries let a company pick its accounting year (Korea sets it in the articles of incorporation, for instance), but Indian income tax uses 1 April to 31 March whatever the company's reporting year. That is why a December year-end parent and its Indian entity are out of step for tax.

The rate structure differs. Instead of progressive bands on taxable income, India applies a single rate by company type with surcharge and cess on top. Minimum tax differs too: Korea's minimum tax, for example, applies to companies claiming reliefs and is measured on taxable income before those reliefs, whereas India's MAT is measured on accounting book profit.

Payment differs most. Where one interim payment and a balance on filing is common elsewhere, India collects most of the year's tax through four advance tax instalments. Build the June, September, December and March payments into the group's cash planning.

Before you file

  • Whether base-year turnover (two years back) is within ₹400 crore: it decides 25% or 30%
  • The deductions and incentives the 22% regime would give up: add them back and recalculate
  • Whether MAT on book profit exceeds normal tax
  • The MAT credit balance and the year each part arose (15-year life)
  • Whether the June, September, December and March advance tax met the cumulative percentages
  • Whether a transfer pricing report is required: it moves the due date to 30 November
  • The tax audit report date (21 October 2026 for FY 2025-26)

Sources

  • Income-tax Act, 1961 ss.115BAA, 115BAB, 115JB, 115JAA, 139(1), 208, 211, 234B, 234C (FY 2025-26)
  • Income-tax Act, 2025 ss.200, 201, 206, 263, 404, 408, 424, 425, 516, 536 (tax year 2026-27)
  • Finance Act, 2026 First Schedule Parts I-A, I-B and III (rates, surcharge, marginal relief, cess) and s.59 (MAT amendments)
  • Finance Act, 2025 First Schedule Part III (FY 2025-26 advance tax rates)
  • Income-tax Rules, 2026 Rule 25(2) and Rule 136
  • CBDT Circular No. 07/2026 (28 September 2026): AY 2026-27 due date extension
  • CBDT table of treaty rates: India–Korea treaty, dividends 15%

Frequently asked questions

On the same taxable income, the 22% regime's effective 25.168% is below the 25% normal rate's 26% (up to ₹1 crore), 27.82% (₹1 to 10 crore) and 29.12% (above ₹10 crore). But the 22% regime gives up the SEZ deduction, additional depreciation and Chapter VI-A (Chapter VIII under the 2025 Act) deductions, so taxable income rises. With large deductions or a big MAT credit balance, the normal rate can come out ahead.

No. Once exercised by the return due date, the option applies to that year and every later year and cannot be withdrawn (s.200(6), formerly s.115BAA(5)). A company that opted under the 1961 Act continues in s.200 under the 2025 Act.

Domestic companies on the normal 25% or 30% rate, and foreign companies with a PE in India. MAT is payable when normal tax is below 15% (FY 2025-26) or 14% (tax year 2026-27) of book profit plus surcharge and cess. Companies in the 22% or 15% regime are outside MAT, and from tax year 2026-27 so are non-resident foreign companies taxed on a presumptive basis.

It survives, but the conditions changed. From tax year 2026-27 a domestic company can use it only in a year it is in the 22% or 15% regime, up to 25% of that year's tax; on the normal rate it cannot be used (s.206(3)). A foreign company sets it off when normal tax exceeds MAT, up to the difference (s.206(4)). Credit still expires in the 15th tax year after it arose.

When taxable income is just above a surcharge threshold (₹1 crore or ₹10 crore). The extra tax plus surcharge may not exceed the income above the threshold, and the excess is relieved. For a 25% company relief runs to about ₹1.024 crore; for a 30% company at the ₹10 crore threshold, to about ₹10.23 crore. The flat 10% surcharge in the 22% regime has no relief.

If the year's expected tax after TDS and TCS is ₹10,000 or more: 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March, cumulatively. On annual tax of ₹1,00,00,000 the instalments are ₹15,00,000, ₹30,00,000, ₹30,00,000 and ₹25,00,000.

The statutory date was 31 October 2026, but CBDT Circular No. 07/2026 moved it to 21 November 2026 for companies without a transfer pricing report. The tax audit report is due by 21 October 2026. Companies with a transfer pricing report keep 30 November 2026.

The foreign company rate of 35%, plus 2% surcharge above ₹1 crore of taxable income or 5% above ₹10 crore, plus 4% cess: an effective 36.4% to 38.22%. The concessional regimes are not available, and there is no separate income tax on remitting branch profit to head office.

Yes. Separately from corporate tax, dividends bear withholding tax at the shareholder level: 20% under Indian law, reduced by a tax treaty where one applies (15% under the India–Korea treaty, for example). Claiming the treaty rate needs a tax residency certificate and related documents. This calculator stops at corporate tax.

Total income computed under the Act, not accounting profit: add back disallowed expenses, use tax depreciation and set off brought-forward losses. Leave out income taxed at special rates, such as capital gains, dividends and royalties.

Not as a new entrant. The requirement to have started manufacturing by 31 March 2024 carries over unchanged into s.201 of the 2025 Act. Companies already in the regime keep 15% (17.16% effective) while they meet its conditions, and the calculator shows the 15% figure on the same income for them as a reference.

Related tools

Compliance calendarAnswer a few questions about the company and see only the Indian statutory deadlines that apply, laid out across the financial year. Subscribe as a calendar or print it.Income tax comparisonRun both regimes side by side and see, in rupees, which one leaves the employee better off.Board resolutionDraft a Companies Act compliant board resolution and download it as PDF or Word.

22% regime is lower

₹1,25,84,000
−₹13.26 L