Income Tax Rates - AY 2026-2027 - Foreign Companies
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Income Tax Rates for Assessment Year 2026-2027
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[ For Company other than Domestic Company ] |
Total Income
(Other than Liable for Special Rates) |
Rates of Income Tax |
| (i) |
on so much of the total income as consists of,- |
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(a) |
royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or |
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(b) |
fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, |
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and where such agreement has, in either case, been approved by the Central Government |
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| (ii) |
on the balance, if any, of the total income, |
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[ Minimum Alternate Tax (MAT) ] |
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[ View Short Note on Mimimum Alternate Tax ] |
| On whole 'book profit' |
@ 15% of 'book profit',
where in the case of a Company other than Domestic Company liable to pay Minimum Alternate Tax where tax payable by it, on its total income computed as per normal provisions of the Act, is less than 15% of 'book profit'. |
| Note : the provisions of MAT do not apply in case of ‐ |
| a) foreign companies if it does not have permanent establishment (PE) in India; |
| b) foreign company opts for presumptive taxation scheme of Section 44B, Section 44BB, Section 44BBA or Section 44BBB. |
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Surcharge |
| A] In the case of total income exceeding Rs.1,00,00,000/- but not exceeding Rs.10,00,00,000/- |
@ 2% of income tax. |
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Provided the total amount payable as income tax and surcharge on such income shall not exceed the total amount payable as income tax on a total income of Rs.1,00,00,000/- by more than the amount of income that exceeds Rs.1,00,00,000/-. |
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| B] In the case of total income exceeding Rs.10,00,00,000/- |
@ 5% of income tax. |
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Provided the total amount payable as income tax and surcharge on such income shall not exceed the total amount payable as income tax on a total income of Rs.10,00,00,000/- by more than the amount of income that exceeds Rs.10,00,00,000/-. |
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Health and Education Cess |
| Health and Education Cess : |
@ 4% of income tax and Surcharge. |
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