🇮🇳 Tax Overview — India
Corporate tax, VAT/GST, and key tax information for businesses operating in India.
Tax Treatment by Structure
Private Limited Company (Pvt Ltd)
Domestic companies that opt for the concessional tax regime under Section 115BAA pay 22% corporate tax (effective rate 25.17% including surcharge and cess) but forgo most exemptions and deductions. Companies that do not opt for this regime pay 30% (25% for turnover up to INR 400 crore in the preceding year). New domestic manufacturing companies incorporated after 1 October 2019 can opt for 15% under Section 115BAB (effective 17.16%). Startup India-recognised companies can claim a 3-year tax holiday under Section 80-IAC on profits (available for companies incorporated before 1 April 2025 with turnover under INR 100 crore). Dividend Distribution Tax has been abolished — dividends are now taxed in the hands of shareholders. Minimum Alternate Tax (MAT) of 15% applies to companies not opting for the concessional regime, calculated on book profits.
Limited Liability Partnership (LLP)
LLPs are taxed as a separate entity at a flat 30% on total income (plus 4% health and education cess, effective rate 31.2%). The concessional tax regime under Section 115BAA is not available to LLPs. However, profit distributions from the LLP to its partners are exempt from tax in the hands of the partners (no DDT equivalent). LLPs with turnover up to INR 40 lakh are exempt from the statutory audit requirement. MAT does not apply to LLPs. LLPs that opt for the presumptive taxation scheme (Section 44AD) can declare 8% of turnover as income if gross receipts do not exceed INR 2 crore.
This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.