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Corporate Tax Formula:
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Corporate Tax in India is a direct tax levied on the net income or profit of corporate entities. For domestic companies with turnover less than ₹400 crore in FY 2025-26, the tax rate is 25% under section 115BAB of the Income Tax Act.
The calculator uses the corporate tax formula:
Where:
Explanation: This calculation applies to domestic companies with annual turnover below ₹400 crore for the financial year 2025-26 as per Indian tax regulations.
Details: Accurate corporate tax calculation is essential for financial planning, compliance with Indian tax laws, budgeting, and ensuring proper tax liability management for businesses operating in India.
Tips: Enter the net profit amount in Indian Rupees (INR). The calculator will automatically compute the corporate tax liability at 25% rate applicable for eligible domestic companies.
Q1: Which companies qualify for the 25% tax rate?
A: Domestic companies with annual turnover less than ₹400 crore in financial year 2025-26 are eligible for this tax rate under section 115BAB.
Q2: What is the tax rate for companies with higher turnover?
A: Companies with turnover exceeding ₹400 crore are subject to a higher corporate tax rate of 30% plus applicable surcharge and cess.
Q3: Are there any additional charges besides the basic tax rate?
A: Yes, surcharge and health & education cess may apply based on the total income and company type, which are not included in this basic calculation.
Q4: When is corporate tax payable in India?
A: Corporate tax is payable through advance tax installments during the financial year, with final payment and return filing by the due dates specified under Income Tax Act.
Q5: Can foreign companies use this calculator?
A: No, this calculator is specifically for domestic companies. Foreign companies have different tax rates and provisions under Indian tax law.