Company Income Tax Rates AY 2022-23 & A.Y. 2023-24

Personal Income Tax: A personal income tax is paid by an individual based on their income tax slab. To put it another way, you can say the taxes paid by people with salaries, pensioners, individuals with capital gains, house property income and Propertership businesses.

You can check the personal income tax slab for A.Y.2022-23 and A.Y. 2023-24 here.

Corporate Taxes: A large number of foreign companies, domestic businesses as well as large companies, like limited liability partnerships, pay income taxes. This article provides you with information on corporate tax/company income tax rates in A.Y. 2022-23 and A.Y.2023-24.

You can check the partnership income tax slab for A.Y. 2022-23 and A.Y. 2023-24 here.

Company Income Tax Rates for A.Y.2022-23 and A.Y.2023-24

In order to calculate the income tax under the Income Tax Act, we can divide the types of companies into the following categories:

  • Domestic Company: A domestic company is one that is registered under the Companies Act of India and includes foreign companies that have their control and management based in India. Public and private companies are included in this category.
  • Foreign Company: Foreign companies aren’t registered under the Indian Companies Act and are managed and controlled outside India.

Income for a company?

A company may earn various types of income. These incomes are subject to income tax rates. Let’s examine company income where income tax rates are applicable. Any company can earn the following income.

  • Income from House property
  • Income from business
  • Capital Gains
  • Income from other sources like interest, dividends etc.

Company Income Tax Rates for A.Y.2022-23 and A.Y.2023-24

Domestic Company Income Tax Rates

Domestic Company: Here is the table of income tax rates applicable for the domestic company for A.Y. 2022-23 and A.Y.2023-24.

Income A.Y.2022-23 A.Y.2023-24
In the previous year 2019-20, its total turnover or gross receipt did not exceed Rs. 400 crores. 25% NA
In the previous year 2020-21, its total turnover or gross receipts were not more than Rs. 400 crores. NA 25%
Any other domestic company 30% 30%
Special Income Tax Rates
Where it opted for section 115BA
25% 25%
Where it opted for Section 115BAA 22% 22%
Where it opted for Section 115BAB 15% 15%
MAT
It is exempt from MAT if the company opts for a special taxation regime under Section 115BAA & 115BAB. It should be noted that in the event that section 115BA has been selected, there is no exemption available.
As a result, Minimum Alternate Tax (MAT) applies, and tax payable cannot be less than 15% (+HEC) of “Book profit” as calculated in section 115JB.

For companies that are units of an International Financial Services Centre and derive solely their income from convertible foreign exchange, MAT is levied at the rate of 9% (plus surcharges and cess).

Surcharge & Education Cess

A.Y. Conditions Domestic Cos. Foreign Cos.
2016-17 to 2023-24 If total income exceeds Rs. 1 crore but does not exceed Rs. 10 crore 7% 2%
  If total income exceeds Rs. 10 crore 12% 5%
When a company opts for taxability under Section 115BAA or Section 115BAB, a flat 10% surcharge will apply regardless of total income.
Education Cess 4% 4%

Foreign Company Income Tax Rates

Nature of Income Tax Rate
In accordance with an agreement with an Indian concern between March 31, 1961 and April 1, 1976, royalties received from the Government or from Indian concerns, or fees for technical services rendered after February 29, 1964 but before April 1, 1976, as long as the Central Government has approved such agreements in either case. 50%
Any Other Income 40%

Surcharge & Education Cess

A.Y. Conditions Domestic Cos. Foreign Cos.
2016-17 to 2023-24 If total income exceeds Rs. 1 crore but does not exceed Rs. 10 crore 7% 2%
  If total income exceeds Rs. 10 crore 12% 5%
When a company opts for taxability under Section 115BAA or Section 115BAB, a flat 10% surcharge will apply regardless of total income.
Education Cess 4% 4%

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