What is the effective tax rate for Indian companies?

The effective rate depends on the regime and profit level. For the 22% regime it's approximately 25.17% after surcharge and cess. For the 30% regime it can reach ~34.94%. This calculator shows your all-in effective rate.

Corporate Tax Calculator (India)

Estimate your income tax under any corporate regime — 22% (Sec 115BAA), 25% (turnover ≤ ₹400 Cr) or 30% standard. Full breakdown including surcharge and health & education cess.

Annual net taxable profit

₹

Taxable profit after all eligible deductions and exemptions.

₹2 crores

Tax regime

The applicable corporate tax regime for your company.

Total income tax payable

₹48,96,320

Base 22% + surcharge + 4% cess.

Base tax₹44,00,000

Surcharge₹3,08,000

Health & Education Cess₹1,88,320

Effective tax rate24.5%

22% of taxable profit.

Estimates only — not financial, tax or legal advice. Figures vary by state, capital and individual circumstances.

Need help with tax planning?

Our CA partners can help you choose the right regime and optimise your tax position.

Offset your tax with startup grants

Government grants and subsidies can reduce your effective tax burden. See what you qualify for.

Browse grants

How to use this calculator

Enter your taxable profit and choose your regime to see the full tax breakdown — base tax, surcharge, cess and the effective rate.

1
Enter your taxable profit. Your annual net taxable profit after all eligible deductions and exemptions under the Income Tax Act.
2
Choose your tax regime. 22% under Section 115BAA (new regime, forego most deductions), 25% if turnover ≤ ₹400 Cr, or 30% standard rate.
3
Read your total liability. See the full breakdown — base tax, surcharge, health & education cess, and your effective tax rate.

Corporate tax rates in 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%.

Surcharge and Health & Education Cess

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.

Minimum Alternate Tax (MAT)

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.

Which regime should you choose?

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.