Tax Rates and Compliance Provisions as per the Income Tax Act, 2025 (Applicable from Tax Year 2026-27 onwards) Income Tax Act, 2025 is applicable from 01.04.2026 and replaces the Income Tax Act, 1961 for Tax Year 2026-27 onwards, aiming at simplified structure, reduced litigation and ease of compliance. Tax rates and important compliance provisions are provided below: Tax Rates: (A) Corporates: Section 200 - Concessional Regime – 22% (Erstwhile Section 115BAA) Particulars Section 200 of Income Tax Act, 2025 Section 115BAA of Income Tax Act, 1961 Remarks Base Tax Rate 22% 22% No change Surcharge 10% (Flat) 10% (Flat) No change Effective Tax Rate (including 4% Health & Education Cess) 25.168% 25.168% No change Note: MAT is not applicable under concessional regime. (a) Section 201- Concessional Regime for New Manufacturing Companies (Erstwhile Section 115BAB) Particulars Section 201 of Income Tax Act, 2025 Section 115BAB of Income Tax Act, 1961 Remarks Base Tax Rate 15% 15% No change Surcharge 10% (Flat) 10% (Flat) No change Effective Tax Rate (including 4% Health & Education Cess) 17.16% 17.16% No change Note: 1. MAT is not applicable under concessional regime. 2. Domestic company should be set up and registered on or after 1 October 2019. 3. Domestic company engaged in manufacturing/production which commenced on or before 31st March 2024.