As for Financial Year 2019-20 (or Assessment Year 2020-21), the corporate tax rate in India varies for certain kind of companies and the distinction has been made clear recently via Indian tax laws, in an attempt to make the tax system more streamlined.
For domestic companies/corporates opting for Section 115BAA, i.e., not seeking any particular form of incentives/benefits/exemptions as stated in the said section, the said companies will be taxed at a flat rate of 22% with an applicable surcharge (10%) and education cess (4%) added to this rate, making the effective tax rate to be 25.17%.
As per section 115BAB, new manufacturing companies, set up/incorporated on or after October 1st, 2019 and commencing manufacturing activity up to 31st March 2023 will be taxed at a rate of 15%. The surcharge will be 10% for these companies, with education cess being same across the board at 4%.
Moreover, companies set up/registered on or after March 1st, 2016 in certain manufacturing capacity per section 115BA are also liable to be taxed at the rate of 25%.
Besides the above, all domestic companies/corporates will be taxed at a flat rate of 25% if their total turnover is less than INR 400 crore in FY 2017-18, otherwise they’ll be taxed at 30%. Further, if net income of the companies/corporates is above INR 1 Crore and up to INR 10 Crore, the rate of surcharge will be 7% and above INR 10 Crore, the rate of surcharge will be 12%. The education cess remains at 4%.