India Corporate Income Tax
Detailed corporate income tax rates and rules for India in 2026.
India's corporate tax system offers multiple rate structures. Domestic companies can opt for a 22% rate (effective ~25.17% with surcharge and cess) under Section 115BAA if they forgo certain deductions and exemptions. New domestic manufacturing companies incorporated after October 1, 2019, and commencing production before March 31, 2024, can opt for a 15% rate (effective ~17.16%) under Section 115BAB. Companies not opting for these concessional rates are taxed at 30% (turnover above INR 400 crore) or 25% (turnover up to INR 400 crore), plus applicable surcharge and cess.
Standard Rate
25.2%
Small Business Rate
25.2%
Additional Notes
Foreign companies are taxed at 40% on Indian-sourced income plus applicable surcharge and cess. The Minimum Alternate Tax (MAT) at 15% of book profits applies to companies claiming deductions that reduce their tax below this threshold, though companies opting for the 22% or 15% concessional rates are exempt from MAT. India has been actively implementing OECD BEPS measures and introduced a 2% equalization levy on e-commerce supply of services by non-resident operators.
How India Corporate Tax compares
India’s corporate tax rate of 25.2% is the 68th highest of 203 countries TaxAtlas tracks, above the global average of 22.2% and Asia’s regional average of 19.7%.
