Income Tax Rates applicable for India domestic Companies for the FY 2023-24
Applicability of the Income Tax on the Domestic Indian Companies.
In India, there are two tax schemes available for the India Domestic companies.
Normal Tax Rates and Special Tax Rates.
Under the Normal Tax Rates.
| Turnover of company | Tax Rate |
| Where its total turnover or the gross receipt during the previous year does not exceed INR. 400 crore. | 25% of Net Profit |
| Any other domestic company | 30% of Net Profit |
Surcharge will be added to the amount of income tax at the specified rate.
| Income Limit | Rate of surcharge |
| INR 1 crore to INR 10 crore | 7% |
| Above INR 10 crore | 12% |
Health and Education Cess shall be added to the amount of income tax and surcharge @4%
Illustration for the understanding. If the Net profit is INR 2 Crore and the company is eligible @ 25% tax rate then the effective rate of tax after adding surcharge and Cess will be (25+7% of 25 will be 26.75% and add 4% of 26.75) =27.82%.
The effective rate of tax will be 27.82%
Under the Special Tax Rates
The Special Tax Rates are applicable in the case of the domestic companies.
| Option | Tax Rate |
| Section 115BA | 25% |
| Section 115BAA | 22% |
| Section 115BAB (only for manufacturing units in special cases) | 15% |
Surcharge will be added @10% flat rate irrespective of the income if the company opted for sections 115BAA & 115BAB.
Health and Education Cess @4% shall be added to the amount of income tax and surcharge.
Note–
- Surcharge shall be the subject to marginal relief under the Normal Tax Rates.
- Domestic Company opted section 115BAA & 115BAB is exempted from the MAT provision.
- No special rate for the foreign companies and income is taxable @40% + applicable surcharge and cess.