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 with gross turnover up to ₹400 Cr in the relevant financial year. Can still claim most deductions. Effective rate approximately 29.12%.

30% — Standard Rate

The default rate for all other companies. Combined with surcharge and cess, the effective rate can reach approximately 34.94%.

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 ₹10 Cr to ₹50 Cr
• 15% — taxable income > ₹50 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 liability under normal provisions is less than 15% of your book profit, MAT applies. You pay the higher of the two. MAT credit can be carried forward and set off against future tax liabilities for up to 15 years.

Companies opting for Section 115BAA (the 22% new regime) are not subject to MAT. Startups also get a special MAT holiday: MAT applies only after the first 5 years of incorporation.

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.