1. Domestic Public Limited Companies (Without Exemptions)

• Under Section 115BAA of the Income Tax Act, domestic Public Limited Companies can opt for a concessional tax rate of 22%.
  
• Applicable only if the company does not claim any exemptions or incentives.
  
• Effective tax rate (including surcharge at 10% and cess at 4%) comes to approximately 25.17%.
  
• Minimum Alternate Tax (MAT) is not applicable under this regime.
  

2. Domestic Companies Not Opting for Section 115BAA

• If the company does not opt for Section 115BAA, the base tax rate is 30%.
  
• Surcharge:
  
  • 7% if the total income exceeds ₹1 crore
    
  • 12% if the total income exceeds ₹10 crore
    
• Cess: 4% on tax and surcharge
  
• The effective tax rate can range between 31.2% and 34.94%, depending on income and surcharge.
  
• MAT at 15% applies to book profits if the normal tax liability is lower.
  

3. Newly Incorporated Manufacturing Companies (Optional)

• New domestic manufacturing companies registered on or after October 1, 2019, and commencing production before March 31, 2024, can opt for Section 115BAB.
  
• Concessional tax rate: 15% (effective rate with surcharge and cess: 17.16%)
  
• No exemption/incentive allowed under this regime.
  
• MAT provisions do not apply.
  

4. Foreign Public Limited Companies

• Taxed at a base rate of 40%.
  
• Surcharge:
  
  • 2% if income exceeds ₹1 crore
    
  • 5% if income exceeds ₹10 crore
    
• Cess: 4% on tax and surcharge
  
• Effective tax rate: approximately 41.6% to 43.68%, depending on income levels.
  

5. Minimum Alternate Tax (MAT)

• MAT applies at 15% (plus surcharge and cess) on book profits for companies not opting for the concessional tax regimes.
  
• MAT credit can be carried forward for 15 years.
  
• MAT ensures that companies with large book profits but low taxable income still pay a minimum level of tax.