Taxation of Small Company

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Read more details about the tax regime, exemptions and penalties.
Relevant Section: 2(59AB) First Schedule Part I Division II

"Small Company" means a company registered under the Companies Act 2017 (XIX of 2017) on or after July 1, 2005, that:

  • (i) Has paid-up capital plus undistributed reserves not exceeding fifty million rupees.
  • (ii) Has annual turnover not exceeding two hundred and fifty million rupees.
  • (iii) Is not formed by the splitting up or reconstitution of an existing company.
  • (iv) Has employees not exceeding two hundred and fifty at any time during the year.
  • (v) Is not a small and medium enterprise as defined in clause (59A).

Rate of Tax

Division II

Type of Company Rate of Tax
Small Company 20% (on taxable income)
Banking Company 39% (on taxable income)
Any other Company 29% (on taxable income)
Read more details about the tax regime, exemptions and penalties.
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