Corporate Tax in India

The corporate tax in India is levied on the taxpayer’s worldwide income in case of residents and only on Indian-source income for non-residents. Our lawyers in India can provide investors with complete information about taxes for companies.

How are companies taxed in India?

Two tax regimes apply in the country, as listed below by our Indian lawyers:

1. The regular taxation regime: a standard rate applies, one for domestic companies and another, larger one, for foreign corporations and branches of foreign companies;
2. The concessional rate: applicable in the case of qualifying domestic companies that give up certain tax deductions and incentives. Our tax lawyers can give you more information.

What are the corporate tax rates in India?

The following basic rates listed by our team are currently in place:

• 30% corporate income tax for domestic companies under the regular tax regime;
• 35% corporate income tax for foreign companies (and their branches) under the regular tax regime;
• 22% reduced corporate income tax applicable to domestic companies under the concessional tax regime, subject to conditions.

Please keep in mind that companies are subject to clear requirements for the concessional tax regime and its applicability can depend on the industry in which the company operates. For example, some manufacturing companies can select a different rate (plus the surcharge, see below) under certain conditions.

What is the surcharge that applies to the corporate tax in India?

Indian companies (referred to as domestic ones for the purpose of taxation) with an income over INR 10 million are subject to a 7% surcharge.

Domestic companies with an income exceeding INR 100 million are subject to a 12% surcharge.

Other surtax rates can apply when:

• An additional, combined cess is due, with a value of 4%, and it contains a health cess along with an education cess;
• 10% surcharge for domestic companies that choose a concessional tax regime regardless of their income;
• 12% surcharge in the case of partnerships that record an income over INR 10 million.

What is the alternative minimum tax in India?

The minimum alternate tax has a value of 14% from 1 April 2026 (15% previously) (not including surcharge, when this is applicable). This tax applies to the adjusted book profits for companies with a tax liability of less than 14% in their book profits.

Partnerships and limited liability partnerships can be subject to a higher alternative minimum tax, at 18.5% (plus surcharge, as applicable) in some cases.

Foreign companies may also apply for the alternative minimum tax; however, in their case, additional rules apply. For example:

• It does not apply to income derived from capital gains transactions from securities, interest, or royalties;
• Foreign companies offering tech services cannot apply for this type of tax.

What is the basis for taxation?

Resident companies are taxed on their worldwide income, while non-resident corporations are taxed only on the income they derive from India.

Indian-sourced income can include capital gains from the transfer of shares of interest in a company.

Branches in India are taxed as foreign companies.

What are the filing and payment requirements?

Under the Income-tax Act, 2025 (in force since 1 April 2026), the tax year in India runs from April 1st to March 31st. Companies file separate returns as consolidated ones are not permitted.

All taxpayers are required to provide details on their income and expenses and the audited accounts, as required for some companies in India.

Failure to observe the mandatory requirements for filing, withholding taxes, underreporting, and misreporting results in penalties.

Our team can give you more information on the requirements and rules set forth by the tax authorities, the Income Tax Department and the Board for Advance Rulings (which replaced the Authority for Advance Rulings in 2021).

Contact us if you want to know more about the corporate tax in India.

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