Tax Slabs for Domestic Companies
For Assessment Year (AY) 2026-27, domestic companies are subject to varying tax rates depending on their turnover and opted sections. Companies with a total turnover or gross receipts during the previous year 2020-21 not exceeding ₹ 400 crores are taxed at 25%. Companies opting for Section 115BA are taxed at 25%, those opting for Section 115BAA are taxed at 22%, and those opting for Section 115BAB are taxed at 15% for business income and 22% for other than business income. Any other domestic company is taxed at 30%.
Surcharge, Marginal Relief, and Cess
Surcharge is levied on income tax at 7% for taxable income above ₹ 1 crore up to ₹ 10 crore, and at 12% for taxable income above ₹ 10 crore. For companies opting for taxability under Section 115BAA or Section 115BAB, the surcharge is 10%. Marginal relief applies where surcharge payable exceeds the additional income making the person liable for surcharge. Additionally, a Health and Education cess of 4% is payable on the amount of income tax plus surcharge.
Minimum Alternate Tax (MAT) is applicable at 15% of book profit (plus applicable surcharge and cess) if the normal tax liability is less than 15% of book profit. For a company being a unit of an International Financial Services Centre deriving income solely in convertible foreign exchange, MAT is payable at 9%. Companies opting for special tax rates under Section 115BAA and 115BAB are exempt from paying MAT.
Applicable Returns and Forms
Domestic companies file ITR-6, except for those claiming exemptions under Section 11. Other forms include Form 26AS, AIS, Form 3CA-3CD for tax audits under Section 44AB, Form 3CEB for international or specified domestic transactions under Section 92E, Form 16A for TDS certificates, Form 29B for book profit certification under Section 115JB, Form 67 for foreign tax credit, and various Form 10 variants (10-IB, 10-IC, 10-ID, 10-CCB, etc.) for claiming specific concessional tax rates and deductions.