The due date for filing income-tax return of a Company (Form ITR-6)is October 31, 2025 (in general) and November 30, 2025 in case of a transfer pricing assessee.
What is a “Company” as per Income tax Act?
As per the Income-tax Act, the term Company includes:
- Indian company – incorporated under Companies Act, 2013
- Body corporate incorporated outside India
- Declared by a special order of the board to be a Company
Broad classification of companies for tax purposes
- Domestic Company –An Indian company or any other company which made arrangements to declare and pay dividends within India
- Foreign Company –Any company other than a domestic company.
Each type of company, domestic and foreign is subject to a different tax rate. Refer below sections to understand the same.
Income subject to Income-tax in a corporate?
- Profits and gains from business and profession
- Capital gains (eg: sale of mutual funds, etc)
- Income from other sources (eg: dividend received, interest received, etc)
Tax Rates for Domestic Companies (AY 2025-26)?
A) Normal rates
| Particulars | Total Income (TI) ≤ ₹1 Cr | ₹1 Cr < TI ≤ ₹10 Cr | TI > ₹10 Cr |
| Turnover ≤ ₹400 Cr in FY | Tax: 25% Surcharge: Nil Cess: 4% Effective: 26.00% | Tax: 25% Surcharge: 7% Cess: 4% Effective: 27.82% | Tax: 25% Surcharge: 12% Cess: 4% Effective: 29.12% |
| Turnover > ₹400 Cr in FY | Tax: 30% Surcharge: Nil Cess: 4% Effective: 31.20% | Tax: 30% Surcharge: 7% Cess: 4% Effective: 33.38% | Tax: 30% Surcharge: 12% Cess: 4% Effective: 34.94% |
Minimum alternate tax (MAT): A domestic company is liable to pay MAT where the tax payable based on the above table is less than 15% of book profit. To summarize, tax on total income or 15% of book profit, whichever is higher.
B) Special rates
| Particulars | Section 115BA | Section 115BAA | Section 115BAB |
| Tax rate Add: Surcharge Add: Cess | 25% Nil 4% | 22% 10% 4% | 15% 10% 4% |
| Effective tax rate | 26.00% | 25.17% | 17.16% |
Section 115BAA – Available to any domestic company, subject to condition that it cannot avail deductions/ exemption for, among other things, SEZ, coffee and tea manufacturing companies, expenses made towards any IIT, research institute for research, etc.
Section 115BAB – New manufacturing companies incorporated post Oct 1, 2019. Has the lowest rate of tax.
Section 115BA – New manufacturing companies incorporated post Oct 1, 2016. MAT provisions as included in the previous part will apply
Foreign Company – What are the Tax Rates for AY 2025-26?
A) Refer the table below for a summary of the tax rates.
| Particulars | Total Income ≤ Rs 1 Cr | Rs 1 Cr > TI ≤ Rs 10 Cr | TI> Rs 10 Cr |
| Tax rate Surcharge Add: Cess | 35% Nil 4% | 35% 2% 4% | 35% 5% 4% |
| Effective tax rate | 36.40% | 37.13% | 38.22% |
Note: MAT provisions as mentioned earlier are also applicable. Refer the above section for details.
B) Special Tax on Certain Income of Foreign Companies – rate of 50% shall apply
Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government.
