Companies – Rate of Income Tax / Corporate Tax

Company tax rates revised with reduced options for eligible domestic firms, surcharge slabs retained and health and education cess applied.

The Finance Bill 2023 sets primary corporate tax regimes: specified base rates for domestic companies depending on turnover and election into concessional regimes; optional lower-rate regimes remain available subject to conditions. Surcharge rates for domestic and non domestic companies persist at prescribed slabs with marginal relief provided for surcharge; a Health and Education Cess is levied on tax inclusive of surcharge without marginal relief. A new provision fixes its own tax rate while surcharge is applied according to taxpayer status.