RATES FOR CORPORATES AND FIRMS
The Finance (No. 2) Bill, 2024 (Bill) does not propose any
change in the tax rates for domestic companies and firms under the
Income-tax Act, 1961 (IT Act). The base tax rates are listed below
for ready reference:
- Domestic companies: 15% / 22% / 25% / 30%,
depending on factors such as nature of business, commencement of
operations, turnover thresholds, optional concessional tax regime,
etc
- Partnerships and LLPs: 30%
Surcharge on base rates, too, remain unchanged for these
entities.
Reduction in tax rate for foreign companies
The Bill proposes to reduce the base corporate tax rate from 40%
to 35% (special rates for specified income streams such as
interest, fees for technical services, capital gains, and dividends
in specified circumstances shall continue to apply). There has been
no change proposed in the surcharge rates.
