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What is the Corporate Gains Tax Rate for FY 2024-25?

What is Corporate Tax in India?

What are the Different Types of Corporates in India?

A corporate implies a juristic person who is a legal body independent from its shareholders. An income generated by a corporate is assessed and evaluated separately from the dividends it provides to its stakeholders. It is not considered in calculating the tax for a corporate but is assessed as a shareholder's income.

A corporate is further divided into 2 categories which are summarized in the following table:

Corporate Type Meaning
Foreign Corporate  A foreign corporation denotes a company that is not Indian in its origin and registered under the Companies Act of India, where some proportion of management and control rests outside India.
Domestic Corporate  A corporate recognised under the Companies Act of India is referred to as a domestic company. It also covers foreign companies where the management and control are entirely based in India. 

What are the Types of Income a Company Earns?

Things to Consider for Calculating Net Income of a Corporate

What are the Corporate Tax Rates in India?

Categories of Company Corporate Tax Rate
Where its total turnover or gross receipt during FY 2021-22 does not exceed ₹400 crore   NA 
Where its total turnover or gross receipt during FY 2022-23 does not exceed ₹400 crore 25%  
Any other domestic company 30%  
Company opting for Section 115BA 25% 
Company opting for Section 115BAA 22% 
Company opting for Section 115BAB  15%

Income Range Corporate Tax Rates
Royalty earned from an Indian resident or Government after 31st March 1961 but before 1st April 1976/ Fees received from rendering technical services after 29th February 1964 but before 1st April 1976, given the approval from the Central Government  50% 
Any other income  35% 

What is the Surcharge Rate and Additional Cess on Corporate Tax?

For Domestic Companies

Particulars Surcharge Rate
Aggregate turnover is more than ₹1 crore but within ₹10 crores  7% 
Aggregate income is more than ₹10 crores 12% 
If opted under Section Section 115BAB and Section 115BAA 10% (exempt from paying MAT) 
Health and education cess  4% 
MAT (Minimum Alternate Tax) on profits, applicable when the tax is calculated according to Section 115JB  15% 

For Foreign Companies

Particulars Surcharge Rates
Aggregate turnover is more than ₹1 crore but within ₹10 crores  2% 
Aggregate income is more than ₹10 crores  5% 
Health and education cess  4% 

What Tax Deductions are Available on Income Tax of a Corporate?

FAQs on Corporate Gains Tax