INCOME TAX · PRIVATE LIMITED COMPANIES
Corporate Tax Rates: Normal Regime vs Section 115BAA
Understand the 22% option, actual effective rate, deductions and the 2026 transition.
By Vyapar Setu Online | Private limited companies · 28 October 2026
Business Income Tax series · Private limited companies · Article 2 of 27
“Our company pays 22% tax” is an incomplete statement. Before choosing a corporate regime, calculate the taxable income under each option and then add surcharge and cess.
Read the year first: Reviewed 28 October 2026. Tax Year 2026–27 uses the Income-tax Act, 2025 and Rules, 2026. Returns for FY 2025–26 / AY 2026–27 use the earlier framework. This guide identifies relevant old section names and current changes; apply each limit to its stated period.
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For learning and preparation. Verify the rules and official guidance for your period and circumstances before making a filing or tax decision.
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