Tax Chart for a Domestic Private Limited Company in India for Assessment Year (AY) 2025-26
13-05-2025
📊 Income Tax Rate Chart – Domestic Private Limited Company
| Particulars | Tax Rate | Surcharge | Effective Tax Rate |
|---|---|---|---|
| Normal Domestic Company (Not opting for concessional tax) | 30% | 7% if income > ₹1 Cr 12% if income > ₹10 Cr | 30% to 34.944% |
| Company under Section 115BA (engaged in manufacturing, registered on or after 01-Oct-2019 and opted for this section) | 25% | 7% if income > ₹1 Cr 12% if income > ₹10 Cr | 25.17% to 29.12% |
| Company under Section 115BAA (concessional rate without incentives/deductions) | 22% | 10% flat surcharge regardless of income | 25.168% |
| Company under Section 115BAB (new manufacturing company registered on or after 01-Oct-2019) | 15% | 10% flat surcharge regardless of income | 17.16% |
✅ Additional Points:
- Health and Education Cess: 4% is applicable on the total of income tax and surcharge in all cases.
- Minimum Alternate Tax (MAT):
- Applicable @15% (plus surcharge and cess) under normal provisions.
- Not applicable if company opts for 115BAA or 115BAB.
- Dividend Distribution Tax (DDT): Abolished from FY 2020-21 onwards. Dividends are now taxable in the hands of shareholders.
🔎 Comparison Example:
| Scenario | Tax Rate (Including surcharge & cess) |
|---|---|
| Regular Company (Income < ₹1 Cr) | 30% + 4% = 31.2% |
| Company under 115BAA | 22% + 10% = 25.168% |
| Company under 115BAB | 15% + 10% = 17.16% |
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