Income Tax Department

Ministry of Finance, Government of India

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Domestic Company

    Meaning

    As per Section 2(22A) , "domestic company" means an Indian company, or any other company which, in respect of its income liable to tax under this Act, has made the prescribed arrangements for the declaration and payment, within India, of the dividends (including dividends on preference shares) payable out of such income

    A. Income-tax

    Income-tax rates applicable in case of domestic companies for Assessment Year 2026-27 are as follows:

    Where its total turnover or gross receipt during the previous year 2023-24 does not exceed Rs. 400 crore 25%
    Where it opted for Section 115BA 25%
    Where it opted for Section 115BAA 22%
    Where it opted for Section 115BAB 15%
    Any other domestic company 30%

    The amount of income-tax computed shall, be increased by a surcharge,-

    1. in case company having a total income exceeding one crore rupees, but not exceeding ten crore rupees, at the rate of seven per cent of such income-tax; and
    2. in case company having a total income exceeding ten crore rupees, at the rate of twelve per cent of such income-tax;

    However, the rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be 10% irrespective of amount of total income.

    Provided that in the case of every company having a total income exceeding one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees :

    Provided further that in the case of every company having a total income exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

    Health and Education Cess

    The amount of income-tax as increased by the applicable surcharge, shall be further increased by "Health and Education Cess on income-tax", calculated at the rate of four per cent of such income-tax and surcharge

    B. Minimum Alternate Tax

    A company shall be liable to pay MAT @ 15% of book profit (plus surcharge and health and Education Cess as applicable) where the normal tax liability of the company is less than 15% of book profit.

    Are there any special provisions in case of carry forward and set off of loss in case of a company in which public are not substantially interested?

    As per section 79 of the Income-tax Act, where a change in shareholding has taken place in a previous year in the case of a company, not being a company in which the public are substantially interested, no loss incurred in any year prior to the previous year shall be carried forward and set off against the income of the previous year unless-

    On the last day of the previous year the shares of the company carrying not less than fifty-one per cent of the voting power were beneficially held by person who beneficially held shares of the company carrying not less than fifty-one per cent of the voting power on the last day of the year or years in which the loss was incurred.

    Restriction of section 79 is applicable only in case of loss and is not applicable in case of adjustment of unabsorbed depreciation, unabsorbed capital expenditure on scientific research or family planning expenditure.

    Further, the provisions of section 79 are not applicable in case of change in share holding on account of death of shareholder or on account of transfer of shares by way of gift to any relative of the shareholder or change in shareholding in case of an Indian company which is a subsidiary of foreign company, when such foreign company is amalgamated/demerged with another foreign company and 51% or more shareholders of the amalgamating/demerged foreign company continues to be the shareholders of the amalgamated/resulting foreign company.

    How to determine the residential status of a company?

    With effect from Assessment Year 2017-18, a company is said to be resident in India in any previous year, if:

    1. It is an Indian company;
    2. Its place of effective management, in that year, is in India.

      For this purpose, the "place of effective management" means a place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole are, in substance made.

      The CBDT issued the final guidelines for determination of POEM. The final guidelines on POEM contain some unique features. One of the unique features is test of Active Business Outside India (ABOI). The guidelines prescribe that a company shall be said to engaged in 'active business outside India' if passive income is not more than 50% of its total income. Further, there are certain additional cumulative conditions to be satisfied regarding location of total assets, employees and payroll expenses.

      The place of effective management in case of a company engaged in active business outside India shall be presumed to be outside India if the majority meetings of the board of directors of the company are held outside India.

      In cases of companies other than those that are engaged in active business outside India, the determination of POEM would be a two stage process, namely:-

       
    3. First stage would be identification or ascertaining the person or persons who actually make the key management and commercial decision for conduct of the company's business as a whole.
    4. Second stage would be determination of place where these decisions are in fact being made.

      However, it has been provided that the POEM guidelines shall not apply to a company having turnover or gross receipts of INR 50 crores or less in a financial year vide CIRCULAR NO.8, DATED 23-2-2017.
    Can branches of companies/banks have separate TANs?

    Yes. In such a case, the name and location of branch or the designation of the person responsible for deducting/collecting tax, whichever is applicable, should be clearly given in the application for allotment of TAN

    In case of change in the constitution of business, can the loss be carried forward by the reconstituted entity?

    Generally, the person incurring the loss is only entitled to carry forward the loss to be adjusted in subsequent year(s). However, in certain cases of reconstitution of the business like amalgamation, demerger, conversion of proprietary firm into company or conversion of partnership firm into company, etc., the reconstituted entity is entitled to carry forward the unadjusted loss of predecessor entity (provided that conditions specified in this regard are satisfied).

    How to apply for PAN?

    1) Online Application - An online application can be made from the website of UTIITSL or Protean (formerly NSDL eGov)

    2) Through PAN Application Center - Application for PAN can be submitted at the

    (a) Protean (formerly NSDL eGov) (b) UTITSL

    • PAN Application center

    Download PAN Application Form.

    Form for changes or correction in PAN data

    Documents be submitted along with the PAN application

      Company registered in India Company registered outside India
    Applicable Form   49A, 49AA
    Documents required Copy of Certificate of Registration issued by the Registrar of Companies. Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by "Apostille" (in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India; or

    Copy of registration certificate issued in India or of approval granted to set up office in India by Indian Authorities.

    Track Status

    Applicant will receive an acknowledgment containing a unique number on acceptance of the application form. This acknowledgement number can be used for tracking the status ( Protean (formerly NSDL eGov)/UTITSL) of the application by using the track status facility available at above web sites.

    Track Status - Protean (formerly NSDL eGov) Track Status - UTIITSL

    Contact Assistance

    The Income Tax Department or Protean (formerly NSDL eGov) or UTIITSL can be contacted in any of the following means

    Mode   Income Tax Department Protean (formerly NSDL eGov) UTITSL
    Website  www.incometaxindia.gov.in https://www.protean-tinpan.com/ www.utiitsl.com
    Call Center 08069708080    
    Email ID tininfo@proteantech.in
    Address Protean (formerly NSDL eGov)
    INCOME TAX PAN SERVICES UNIT
    (Managed by Protean eGov Technologies Limited,
    4th floor, Sapphire Chambers,
    Baner Road, Baner,
    Pune - 411045     		UTI Infrastructure Technology And Services Limited,
    Plot No.3, Sector 11, CBD Belapur Navi Mumbai PIN - 400614
    If your PAN card is lost ?

    If the PAN card is lost then you can apply for duplicate PAN card by submitting the Form for "Request for New PAN Card or/ and Changes or Correction in PAN Data" and a copy of FIR may be submitted along with the form.

    If the PAN card is lost and you don't remember your PAN, then in such a case, you can know your PAN by using the facility of "Know Your PAN" provided by the Income Tax Department. This facility can be availed of from the website of Income Tax Department - www.incometaxindia.gov.in

    You can know your PAN online by providing the core details like Name, Father's Name and Date of Birth. After knowing the PAN you can apply for duplicate PAN card by submitting the "Request For New PAN Card Or/ And Changes Or Correction in PAN Data".

    What are the benefits of obtaining a PAN Card?

    A Permanent Account Number has been made compulsory for every transaction with the Income-tax Department. It is also mandatory for numerous other financial transactions such as opening of bank accounts, availing of institutional financial credits, purchase of high-end consumer items, foreign travel, transaction of immovable properties, dealing in securities, etc. A PAN card is a valuable means of photo identification accepted by all Government and non-Government institutions in the country.

    Is it mandatory to provide the Assessing Officer Code in Form 49A/49AA?

    Yes, it mandatory to provide the Assessing Officer (AO) Code in Form 49A/49AA. AO Code (i.e. Area Code, AO Type, Range Code and AO Number) of the Jurisdictional Assessing Officer must be filled up by the applicant. These details can be obtained from the Income Tax Office or PAN Centre or websites of PAN service providers on www.utiitsl.com or www.tin-nsdl.com.

    What is the penalty for not complying with the provisions relating to PAN?

    Section 272B provides for penalty in case of default by the taxpayer in complying with the provisions relating to PAN, i.e., not obtaining PAN, even though he is liable to obtain PAN or knowingly quoting incorrect PAN in any prescribed document in which PAN is to be quoted or intimating incorrect PAN to the person deducing tax or person collecting tax. Penalty under section 272B  is Rs. 10,000.

    Can a person hold more than one PAN?

    A person cannot hold more than one PAN. If a PAN is allotted to a person, then he cannot apply for obtaining another PAN. A penalty of Rs. 10,000/- is liable to be imposed under Section 272B of the Income-tax Act, 1961 for having more than one PAN.

    If a person has been allotted more than one PAN then he should immediately surrender the additional PAN card(s).

    Is it mandatory to provide Aadhaar number in PAN application form?

    It is mandatory to quote Aadhaar number in the PAN application form for every person who is eligible to obtain Aadhaar Number.

    In case the person does not posses the Aadhaar number, the enrolment ID of Aadhaar form can be quoted.

    Note: W.e.f. 01-10-2024, the benefit of quoting enrolment ID of Aadhaar form has been withdrawn. The taxpayer is required to quote his Aadhaar number in PAN application Form.

    View all Frequently Asked Questions

    Income from House Property

    Conditions for Taxability

    • The house property should consist of any building or land appurtenant thereto;
    • The taxpayer should be the owner of the property;
    • The house property should not be used for the purpose of business or profession carried on by the taxpayer.
    see more

    Profits and Gains from Business and Profession

    The following incomes are chargeable to tax under the head Profit and Gains from Business or Profession:

    • Profit and gains from any business or profession carried on by the assessee at any time during the previous year
    • Any compensation or other payment due to or received by any specified person
    see more

    Income under the Capital Gains

    Conditions for Chargeability:

    • There should be a capital asset. In other words, the asset transferred should be a capital asset on the date of transfer;
    • It should be transferred by the taxpayer during the previous year;
    • There should be profits or gain as a result of transfer
    see more

    Income from Other Sources

    Any income which is not chargeable to tax under any other heads of income and which is not to be excluded from the total income shall be chargeable to tax as residuary income under the head “Income from Other Sources”.

    see more

    I. Steps to fill form 26QB :

    1. Log on to website e-filing portal ( https://www.incometax.gov.in/iec/foportal/ ).
    2. Under 'e-file', click on 'e-Pay tax'
    3. Then Click on ‘New Payment’
    4. Select ‘Proceed’ under ‘26 QB (TDS on Sale of Property)’ field
    5. Fill the complete form as applicable.

      (User should be ready with the following information while filling the form 26QB :

      1. Residential Status of seller
      2. PAN of the seller & buyer
      3. Communication details of seller & buyer
      4. Property details
      5. Amount paid/credited & tax details
    6. After submitting, the next page will ask to select the mode of payment i.e.,:
      1. Net banking;
      2. Debit Card;
      3. Pay at Bank counter;
      4. RTGS/NEFT; or
      5. Payment Gateway.
    7. Select the appropriate payment mode and click on continue to make the payment.
    8. On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.
    Proceed to TRACES portal (https://contents.tdscpc.gov.in/) after 5 days to download Form 16B.

    II. Steps to Download Form 16B:

    1. Register & login on TRACES portal (https://contents.tdscpc.gov.in/) as taxpayer using your PAN.
    2. Select "Form 16B (For Buyer)" under "Downloads" menu.
    3. Enter the details pertaining to the property transaction for which Form 16B is to be requested. Enter the Form Type, Assessment Year, Acknowledgment Number, PAN of Seller and click on "Proceed".
    4. A confirmation screen will appear. Click on "Submit Request" to proceed.
    5. A success message on submission of download request will appear. Please note the request number to search for the download request.
    6. Click on "Requested Downloads" to download the requested files.
    7. Search for the request with request number. Select the request row and click on "HTTP download" button.

    Click here to go 'TDS on Sale of Property' page at TRACES Website

    Income Tax on Companies

    The tax that is to be paid by the companies on their income is called as corporate tax, and for payment of same in the challan it is mentioned as Income-tax on Companies (Corporation tax).

    Tax paid by non-corporate assessees is called as Income-tax, and for payment of the same in the challan it is to be mentioned as Income-tax (other than Companies).

    How is advance tax calculated and paid?

    Advance tax is to be calculated on the basis of expected tax liability of the year. Advance tax is to be paid in instalments.

    Advance tax is to be calculated on the basis of expected tax liability of the year. Advance tax is to be paid in instalments as given below:

    Status By 15th June By 15th Sept 15th Dec 15th March
    Assessee 15% 45% 75% 100%

    Any tax paid till 31st March is treated as advance tax.

    The deposit of advance tax is made through challan ITNS 280 by ticking the relevant column, i.e., advance tax.

    Click here to check the taxability

    How to compute Tax?

    After ascertaining the total income, i.e., income liable to tax, the next step is to compute the tax liability for the year. Tax liability is to be computed by applying the rates prescribed in this regard. For rates of tax, refer "Tax Rate" section. Following table will help in understanding the manner of computation of the total tax liability of the taxpayer.see more

    Tutorial on Minimum Alternate Tax

    Tax Calculators

    Tax Rates

      ↵

    How to pay Tax?

    e-Payment is mandatory in case of Companies

    View FAQs on Computation of Tax

    Who should file return of income?

    Every company shall, on or before the due date, furnish a return of his income during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed

    Documents required to be attached with the return of income

    ITR return forms are attachment less forms and, hence, the taxpayer is not required to attach any document (like proof of investment, TDS certificates, etc.) along with the return of income (whether filed manually or filed electronically). However, these documents should be retained by the taxpayer and should be produced before the tax authorities when demanded in situations like assessment, inquiry, etc.

    However, in case of a taxpayer who is required to furnish a report of audit under section 10(23C)(v),10(23C)(vi), 10(23C)(via), 10A,10AA, 12A(1)(b), 44AB, 44DA, 50B, 80-IA,80-IB,80-IC,80-ID, 80JJAA, 80LA,92E,115JB or 115VW shall furnish it electronically on or before the date of filing the return of income.

    How to file return of income?

    It is mandatory for a company to file its return of income electronically under digital signature.

    ITR   Description    
    ITR 6 For Companies other than companies claiming exemption under section 11 PDF
    ITR 7 For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only PDF

    View Previous Year Return Forms

    Due dates for filing returns of income/loss

    The due dates for filing return of income by a Company is 31st October

    In case of an assessee having an international transaction or specified domestic transaction(s) who is required to furnish a report in Form No. 3CEB the due date is 30th November.

    Whether an assessee can file a revised return to correct a mistake in return filed earlier?

    Yes, return can be revised at any time within 3 months prior to the end of the relevant assessment year or before completion of the assessment whichever is earlier.

    Can a return be filed after the due date?

    Yes, if one could not file the return of income on or before the prescribed due date, then he can file a belated return. A belated return can be filed at any time within 3 months before the end of the assessment year or before completion of the assessment, whichever is earlier. Return filed after the prescribed due date is called as a belated return.

    E.g., In case of income earned during FY 2024-25, the belated return can be filed up to 31st December, 2025.

    Can a return of income be filed after expiry of due date to file belated return?

    Section 139(8A) to enable the filing of an updated return. The section provides that an updated return can be filed by any person irrespective of the fact whether such person has already filed the original, belated or revised return for the relevant assessment year or not (subject to certain conditions). An updated return can be filed at any time within 48 months from the end of the relevant assessment year.

    Am I required to keep a copy of the return filed as proof and for how long?

    Yes, since legal proceedings under the Income-tax Act can be initiated up to three/five years (as the case may be) prior to the current financial year, you must maintain such documents at least for this period.

    View all FAQs on Filing the Return of Income

    View Refund/Demand Status  

    To view Refund/Demand Status, please follow the below steps:

    1. Login to e-Filing website with User ID, Password.
    2. Go to Pending Actions and click on ".
    3. Response to Outstanding Demand

    How to Request for Refund Re-issue (in case of refund failure)

    To request for Refund Re-issue, please follow the below steps:

    Click here to visit relevant webpage
    1. Login to e-Filing website with User ID, Password.
    2. Go to Services and click on "Refund Reissue ".
    3. Create Refund Reissue request
Tax Calendar
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12/11/25, 12:00 AM
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