Company taxation

For the Assessment Year (AY) 2026-27, the surcharge rates for domestic companies in India are determined by their total income as follows:

Surcharge Rates for Domestic Companies

Important Notes:

• Concessional Tax Regimes: If a domestic company opts for taxation under Section 115BAA or Section 115BAB, the surcharge rate is fixed at 10% of the income tax, regardless of the amount of total income.

• Health and Education Cess: In addition to the applicable income tax and surcharge, a Health and Education Cess of 4% is levied on the total of the income tax and the surcharge.

• Marginal Relief: Marginal relief is available for companies whose total income slightly exceeds the threshold limits (₹1 crore or ₹10 crores), ensuring that the increase in tax liability does not exceed the increase in income.

Summary: The surcharge for domestic companies is 7% for income between ₹1 crore and ₹10 crores, and 12% for income exceeding ₹10 crores. Companies opting for the concessional rates under Sections 115BAA or 115BAB are subject to a flat 10% surcharge. A 4% Health and Education Cess applies in all cases.