Corporate Tax & Minimum Alternate Tax (MAT) Matrix
Statutory corporate tax rates for domestic companies (Section 200 / 115BAA @ 25.17%), regular corporate slabs, LLPs, foreign entities, and Section 206 (115JB) MAT computation rules for FY 2026-27.
Statutory Corporate Rates & Entity Classifications
Cross-referencing Sections 200, 201, 206 of Income-tax Act, 2025 with Sections 115BAA, 115BAB, 115JB, and First Schedule.
| Statutory Citation (Act 2025 / 1961) | Entity Classification & Description | Base Rate | Effective Rate Range | MAT Applicability & Surcharges |
|---|---|---|---|---|
Section 200 Section 115BAA | Domestic Companies (Opting concessional regime without specific deductions/exemptions) Exempt from Minimum Alternate Tax (MAT). Most popular regime for established companies. | 22% | 25.17% Surcharge: 10% flat + 4% Cess | MAT Exempt (0%) |
Detailed Surcharge & Effective Rate Slabs for Section 115BAA All Income Levels (Flat) Surcharge: 10% flat • Cess: 4% Effective Rate: 25.17% | ||||
Section 201 Section 115BAB | New Manufacturing Domestic Companies Exempt from Minimum Alternate Tax (MAT). Applicable for eligible new manufacturing setups. | 15% | 17.16% Surcharge: 10% flat + 4% Cess | MAT Exempt (0%) |
Regular Domestic Company (Turnover ≤ ₹400 Crore) Section 115BA / First Schedule | Domestic Company with turnover ≤ ₹400 Crore in relevant prior year Subject to MAT under Section 206 @ 15% of book profits. | 25% | 26.00% to 29.12% Surcharge: 7% (if income > ₹1Cr) / 12% (if income > ₹10Cr) + 4% Cess | MAT Applicable (15%) |
Regular Domestic Company (Turnover > ₹400 Crore) First Schedule Part I | Domestic Company with turnover > ₹400 Crore Subject to MAT under Section 206 @ 15% of book profits. | 30% | 31.20% to 34.94% Surcharge: 7% (if income > ₹1Cr) / 12% (if income > ₹10Cr) + 4% Cess | MAT Applicable (15%) |
Partnership Firms & LLPs First Schedule Part I | Partnership Firms / LLPs Alternate Minimum Tax (AMT) @ 18.5% applicable if claiming specified profit deductions. | 30% | 31.20% / 34.94% Surcharge: 12% (if income > ₹1 Crore) + 4% Cess | MAT Exempt (0%) |
Section 206 Section 115JB | Minimum Alternate Tax (MAT) on Book Profits of Companies Applies to companies where regular tax liability is less than 15% of adjusted book profits. | 15% | 15.60% to 17.47% Surcharge: Applicable corporate surcharge (0% / 7% / 12%) + 4% Cess | MAT Applicable (15%) |
Domestic Companies (Opting concessional regime without specific deductions/exemptions)
Exempt from Minimum Alternate Tax (MAT). Most popular regime for established companies.
New Manufacturing Domestic Companies
Exempt from Minimum Alternate Tax (MAT). Applicable for eligible new manufacturing setups.
Domestic Company with turnover ≤ ₹400 Crore in relevant prior year
Subject to MAT under Section 206 @ 15% of book profits.
Domestic Company with turnover > ₹400 Crore
Subject to MAT under Section 206 @ 15% of book profits.
Partnership Firms / LLPs
Alternate Minimum Tax (AMT) @ 18.5% applicable if claiming specified profit deductions.
Minimum Alternate Tax (MAT) on Book Profits of Companies
Applies to companies where regular tax liability is less than 15% of adjusted book profits.
Corporate Tax & MAT Comparator Simulator
Compare Section 115BAA (22% Concessional) vs Regular Regime (25%/30%) + Section 115JB MAT in real time.
Can be set off against regular corporate tax in subsequent years (15-year carry forward).
Recommended Corporate Regime
Form 10-IC Election Rule
To exercise the concessional 22% rate under Section 200 (115BAA), domestic companies must electronically furnish Form 10-IC on or before the due date specified under Section 139(1) for filing the return of income. Once exercised, the option cannot be subsequently withdrawn for that year or any subsequent tax year.
Forfeited Deductions & Losses
Companies opting for Section 115BAA cannot claim Section 10AA (SEZ profit deduction), additional depreciation under Section 32(1)(iia), tea/coffee development under Section 33AB, scientific research under Section 35, or Chapter VI-A deductions (except Section 80JJAA and Section 80M).
15-Year MAT Credit (Sec 115JAA)
Under regular regime, MAT paid in excess of normal tax liability is credited and can be carried forward for 15 subsequent assessment years under Section 115JAA. Note: If a company opts for Section 115BAA, accumulated unabsorbed MAT credits cannot be set off and lapse irrevocably.
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