Corporate (Companies) tax in India is levied on both domestic as well as foreign companies. As all individuals earning income are required to pay a tax on their income, corporates are too supposed to pay tax on their business income earned. This tax is known as corporate tax, corporation tax or company tax.

  • Corporate Tax Rate for Domestic Companies in India:
Turnover
Tax Rate
Total Turnover upto Rs.50 crore in the previous year
25%
Total Turnover more than Rs.50 crore in the previous year
30%


In additioncess and surcharge is levied as follows:

Education Cess: 3% of corporate tax
Surcharge: Taxable income is more than 1 Crore but less than 10Crore: 7%
Taxable income is more than 10 Crore :12%

  • Corporate Tax Rate for Foreign Companies in India:

A foreign company is taxed at a flat rate of 40%.

Education Cess: 3% of corporate tax
Surcharge: Taxable income is more than 1 Crore but less than 10Crore: 2%
Taxable income is more than 10 Crore : 5%