Corporate Tax Calculator (India)

India's corporate tax structure has three main tiers, plus surcharge and cess that increase the effective rate significantly. Understanding which regime applies to your company is the first step in tax planning.

22% — Section 115BAA (New Regime)

Available to any domestic company. Lower rate but most deductions and exemptions — including Section 80-IAC, accelerated depreciation, and SEZ benefits — must be foregone. The effective rate including surcharge and cess is approximately 25.17%.

25% — Turnover ≤ ₹400 Cr

Applicable to companies whose turnover was up to ₹400 Cr in the earlier reference year named in that year's Finance Act (not necessarily the current year). Can still claim most deductions. With 4% cess the rate is 26% when taxable income is up to ₹1 Cr, about 27.82% between ₹1 Cr and ₹10 Cr (7% surcharge) and about 29.12% above ₹10 Cr (12% surcharge).

30% — Standard Rate

The default rate for all other companies. With 4% cess the rate is 31.2% up to ₹1 Cr of taxable income, about 33.38% between ₹1 Cr and ₹10 Cr and about 34.94% above ₹10 Cr.

Beyond the base rate, two additional levies apply:

Total tax = Base tax + Surcharge + (Base tax + Surcharge) × 4%

Surcharge on base tax is income-based:

• Nil — taxable income ≤ ₹1 Cr
• 7% — taxable income ₹1 Cr to ₹10 Cr
• 12% — taxable income above ₹10 Cr
• Flat 10% at any income on the 22% regime (Section 115BAA)

Marginal relief applies just above each threshold: the extra tax and surcharge can't be more than the extra income. For example, at ₹1.01 Cr on the 25% rate, the 7% surcharge would be ₹1,76,750, but marginal relief cuts it to ₹75,000 — so tax plus surcharge (₹26,00,000) rises by no more than the ₹1,00,000 of income above ₹1 Cr.

The Health & Education Cess of 4% applies on the base tax plus surcharge. It is not deductible as a business expense.

If your tax under normal provisions is less than MAT on your book profit (15% up to FY 2025-26, 14% from tax year 2026-27, plus surcharge and cess), you pay MAT. From tax year 2026-27, MAT paid under the old regime is a final tax and creates no new credit.

Companies opting for Section 115BAA (the 22% new regime) are not subject to MAT. There is no MAT holiday for startups — a company claiming 80-IAC still pays MAT on its book profit.

The 22% new regime under 115BAA is attractive for startups with limited deductions — most early-stage companies don't have enough deductions to make the 30%+ old regime worthwhile. But if you qualify for Section 80-IAC (three-year tax holiday for DPIIT startups), the old regime may be better, since the new regime requires you to forego that deduction. Always confirm with a CA.

From tax year 2026-27 (income earned from 1 April 2026) the Income-tax Act 2025 replaces the 1961 Act. This page uses the 1961 section numbers, which still apply to FY 2025-26 and earlier years. For the current year, the same rules sit under these new numbers:

• Section 80-IAC → section 140 of the Income-tax Act 2025
• Section 115BAA → section 200 of the Income-tax Act 2025