Corporate Tax Guide: Private Limited Company Rates (22% & 15%), MAT & ITR-6

कंपनी कर (कॉर्पोरेट टैक्स) संपूर्ण गाइड

Comprehensive guide to corporate income tax for Private Limited and Public Limited companies in India: Section 115BAA (22% base rate), Section 115BAB (15% manufacturing), MAT exemption under 115BAA, and filing Form ITR-6.

Written by: Author Profile

Direct Tax & CA Review Panel

Chartered Accountancy Review Panel • Senior Direct Tax Review Desk

Reviewed & Fact-Checked by: Technical Review Panel

Tax Law & Dispute Review Desk

Tax Litigation & Legal Review Panel • Tax Appeal & Procedure Review Desk

Published: 1st April 2026•Last Updated: 15th August 2026•Last Reviewed: 15th August 2026

Key Statutory Highlights (FY 2026-27 (AY 2027-28))

Section 115BAA offers domestic companies a concessional base tax rate of 22% (+ 10% surcharge + 4% cess = 25.168% effective) without MAT applicability.

Section 115BAB allows new domestic manufacturing companies a 15% base tax rate (effective 17.16%).

Normal corporate tax rate: 25% for companies with turnover up to ₹400 Crore in preceding FY; 30% for others.

Director remuneration is deductible as business expense subject to Section 192 TDS deduction.

Mandatory statutory audit and filing Form ITR-6 with digital signature by 31st October.

Who is Eligible & When Does it Apply?

Applicability #1

Domestic companies registered under the Companies Act, 2013.

Step-by-Step Procedure & Compliance Roadmap

Opt for Section 115BAA via Form 10-IC

File electronic Form 10-IC on the Income Tax portal before ITR due date to lock in the 22% rate.

Prepare Audited Financial Statements

Complete statutory audit by an independent Chartered Accountant.

Obtain Form 3CA-3CD Tax Audit Report

Upload Tax Audit Report by 30th September.

File ITR-6 by 31st October

Submit Form ITR-6 electronically using Class 3 DSC of Managing Director.

Mandatory Documents Checklist

Audited Financial Statements, Tax Audit Report Form 3CA/3CD, Form 10-IC, GSTR-9, MCA AOC-4 & MGT-7

Common Mistakes & Compliance Risks to Avoid

•Forgetting to file Form 10-IC before ITR due date, forfeiting the 22% tax rate.

•Distributing dividends without deducting Section 194 TDS @ 10%.

Frequently Asked Questions

Is MAT applicable if the company chooses Section 115BAA (22%)?

No. Section 115JB Minimum Alternate Tax (MAT) does NOT apply to companies that opt for Section 115BAA.

Interactive Tax Calculators

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🛡️ Educational Disclaimer: FinSetu India is an independent educational guidance and calculation platform. Content is published for general citizen awareness based on applicable laws as of FY 2026-27 (AY 2027-28). We do not provide personalized legal/tax advice or file returns directly. Verify current applicable rules on official portals or consult a qualified Chartered Accountant / Tax Lawyer.