Income Tax || How to Change the Tax Slab Rate for a Company
Tax Slabs for Domestic Company for AY 2024-25
1. Companies with Total Turnover or Gross Receipts during FY 2020-21 up to ₹400 Crores:
- Income Tax Rate: 25%
2. Companies Opting for Specific Tax Regimes:
Section 115BA:
- Income Tax Rate: 25%
Section 115BAA:
- Income Tax Rate: 22%
Section 115BAB:
- Income Tax Rate: 15%
3. Other Domestic Companies (not falling under the above conditions):
- Income Tax Rate: 30%
These rates are applicable before adding the surcharge and health & education Cess.
Surcharge, Marginal Relief and Health & Education Cess
What is Surcharge?
Surcharge is an additional charge levied for persons earning income above the specified limits, it is charged on the amount of income tax calculated as per applicable rates:
- 7% - Taxable income above ₹ 1 crore– Up to ₹ 10 crore
- 12% - Taxable income above ₹ 10 crore
- 10% - If Company opting for taxability u/s 115BAA or Section 115BAB
What is Marginal Relief?
Marginal Relief is a relief from surcharge, provided in cases where the surcharge payable exceeds the additional income that makes the person liable for surcharge. The amount payable as surcharge shall not exceed the amount of income earned exceeding ₹ 1 crore and ₹ 10 crore respectively.
What is Health and Education Cess?
Health and Education Cess @ 4% shall also be paid on the amount of income tax plus surcharge (if any).
Tax Slabs for Foreign Company for AY 2024-25
| Condition | Income Tax Rate |
| Royalty from Government or an Indian concern in pursuance of an agreement made with the Indian concern after 31st March 1961, but before 1st April 1976, or fees for rendering technical services in pursuance of an agreement made after 29th February 1964 but before 1st April 1976 and where such agreement has, in either case, been approved by the Central Government | 50% |
| Any other income | 40% |
Surcharge, Marginal Relief and Health & Education Cess
| What is Surcharge? |
Surcharge is an additional charge levied for persons earning income above the specified limits, it is charged on the amount of income tax calculated as per applicable rates:
|
| What is Marginal Relief? |
| Marginal Relief is a relief from surcharge, provided in cases where the surcharge payable exceeds the additional income that makes the person liable for surcharge. The amount payable as surcharge shall not exceed the amount of income earned exceeding ₹ 1 crore and ₹ 10 crore respectively. |
| What is Health and Education cess? |
| Health and Education cess @ 4% shall also be paid on the amount of income tax plus surcharge (if any). |
How to Change the Tax Slab Rate for a Company in Software:
Go to Transaction >> Business and Profession Income >> Click on Point Number 9 "Other Detail 115BA/ 115BAA/ 115BAB" and select the applicable tax slab, then file the related form:
How to Upload Form 10IB/10IC/10ID:
Click here to Process of Filing Forms 10IB/10IC/10ID.
Hope This Helps.
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