For the tax year 2026-27, the base rate of income-tax (before surcharge and cess) payable under the…

The First Schedule to the Finance Act, 2026, which prescribes the rates of income-tax under the Income-tax Act, 2025 for the tax year 2026-27, taxes a company other than a domestic company at 35% of its total income (other than income chargeable at special rates; royalties and fees for technical services under certain Government-approved agreements made before 1 April 1976 are taxed at 50%). Surcharge and health and education cess are levied in addition. The earlier rate of 40% (up to AY 2024-25) was reduced to 35% by the Finance (No. 2) Act, 2024, while 25% and 30% are the rates for domestic companies.