Here is the updated Indian Income Tax Rate Chart for Non-Individual Entities for the Financial Year 2025–26 (Assessment Year 2026–27), incorporating the latest changes from the Finance Bill, 2025.
Income Tax Rates for Non-Individual Entities (FY 2025–26)
1. Domestic Companies
| Category | Tax Rate | Surcharge | Health & Education Cess |
| Turnover ≤ ₹400 crore (FY 2022–23) | 25% | 7% (Income > ₹1 crore ≤ ₹10 crore) 12% (Income > ₹10 crore) | 4% |
| Opting under Section 115BAA | 22% | 10% (Flat) | 4% |
| Opting under Section 115BAB (New manufacturing co. registered after Oct 1, 2019) | 15% | 10% (Flat) | 4% |
| Other domestic companies | 30% | 7% (Income > ₹1 crore ≤ ₹10 crore) 12% (Income > ₹10 crore) | 4% |
Note: Companies opting for Sections 115BAA or 115BAB are exempt from Minimum Alternate Tax (MAT).
2. Foreign Companies
| Income Type | Tax Rate |
| Royalty or fees for technical services | 50% |
| Other income | 35% |
| Surcharge | Health & Education Cess |
| 2% (Income > ₹1 crore ≤ ₹10 crore) 5% (Income > ₹10 crore) | 4% |
3. Partnership Firms & LLPs
| Category | Tax Rate | Surcharge | Health & Education Cess |
| All partnership firms & LLPs | 30% | 12% (Income > ₹1 crore) | 4% |
Key Changes Effective April 1, 2025:
- Increased Remuneration Limits for Partners:
- Previous Limits:
- On the first ₹3,00,000 of book profit (or in case of a loss): ₹1,50,000 or 90% of book profit, whichever is higher.
- On the remaining book profit: 60% of the book profit.
- Revised Limits:
- On the first ₹6,00,000 of book profit (or in case of a loss): ₹3,00,000 or 90% of book profit, whichever is higher.
- On the remaining book profit: 60% of the book profit.
- Previous Limits:
- Introduction of Section 194T – TDS on Partner Payments:
- Applicability: Effective from April 1, 2025, partnership firms and LLPs must deduct TDS on certain payments made to partners
- TDS Rate: 10% on the entire amount if total payments to a partner exceed ₹20,000 in a financial year.
- Payments Subject to TDS:
- Salary/Remuneration
- Commission
- Bonus
- Interest on Capital/Loan
- Payments Not Subject to TDS:
- Drawings or Capital Repayment
4. Co-operative Societies
| Income Range | Tax Rate |
| Up to ₹10,000 | 10% |
| ₹10,001 – ₹20,000 | 20% |
| Above ₹20,000 | 30% |
| Surcharge | Health & Education Cess |
| 7% (Income > ₹1 crore ≤ ₹10 crore) 12% (Income > ₹10 crore) | 4% |
Note: Co-operative societies can opt for concessional tax rates under Sections 115BAD or 115BAE, subject to specified conditions.
5. Local Authorities
| Category | Tax Rate | Surcharge | Health & Education Cess |
| All local authorities | 30% | 12% (Income > ₹1 crore) | 4% |
For detailed computations or assistance in choosing the most beneficial tax regime for your entity, consider consulting a tax professional.
Here is the Income Tax Rate Chart for Trusts for the Financial Year 2025–26 (Assessment Year 2026–27) as per the latest provisions of the Income Tax Act, 1961 and updates from the Union Budget 2025:
Types of Trusts and Applicable Tax Rates
1. Public Charitable or Religious Trusts (Registered under Section 12AA / 12AB)
| Condition | Tax Rate |
| Trust registered under Section 12AA/12AB and compliant with provisions | Exempt (Sections 11 & 12) |
| Violation of conditions (e.g., income not applied for charitable purposes) | Maximum Marginal Rate (MMR) = 30% + surcharge + cess |
2. Private Trusts
A. Private Specific Trusts (Beneficiaries identified with determinate shares)
| Status of Settlor / Beneficiary | Tax Rate |
| Settlor is alive / Individual | Individual slab rates |
| Beneficiaries are not individuals (e.g., HUFs) | Applicable rate for the beneficiary type |
B. Private Discretionary Trusts (Beneficiaries not specifically identified)
| Tax Rate |
| Maximum Marginal Rate (30% + surcharge + 4% cess) |
3. Anonymous Donations (Section 115BBC)
| Nature | Tax Rate |
| Anonymous donations to charitable/religious trust | 30% on such income |
| (Exemption: First 5% of total donations or ₹1 lakh, whichever is higher) |
4. AOP/BOI Structure (if applicable)
If the trust is assessed as an Association of Persons (AOP):
| Situation | Tax Rate |
| All members are individuals and no member has income above taxable limit | Individual slab rates |
| Otherwise | MMR (30% + surcharge + cess) |
5. Business Income of Charitable Trusts
- If a trust engages in a business not incidental to its objectives, income is taxable at MMR.
Key Notes
- Maximum Marginal Rate (MMR) = 30% + applicable Surcharge + 4% Cess.
- Surcharge depends on income level:
- 10% if income > ₹50 lakh
- 15% if income > ₹1 crore
- Trusts not registered under Section 12AA/12AB cannot claim exemption under Sections 11 and 12.