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ARTICLE · 04 FEBRUARY 2026

Union Budget 2026 - Direct Tax Proposals

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No changes have been proposed in the Finance Bill, 2026 (Bill) on the personal and corporate income tax rates.

IndiaTax
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Tax Rates

No changes have been proposed in the Finance Bill, 2026 (Bill) on the personal and corporate income tax rates.

Rates for Companies and Firms

Base tax rates for companies and firms under the Income-tax Act, 2025 (ITA 2025) and the Income-tax Act, 1961 (ITA 1961) are listed below for ready reference:

  • Domestic Companies: 15%/22%/25%/30%, depending on nature of business, commencement of operations, turnover thresholds, and tax regime opted etc.
  • Foreign Companies: 35%
  • Partnership and LLPs: 30%

Applicable surcharge on base rates and 4% cess on the aggregate of tax and surcharge, too, remain unchanged for these entities. Amendments relating to Minimum Alternate Tax (MAT) applicable to companies are discussed subsequently.

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