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Foreign Company for AY 2025-26

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 Returns and Forms Applicable for Foreign Company for AY 2025-26

 

Disclaimer: The content on this page is only to give an overview / general guidance and is not exhaustive. For complete details and guidelines, please refer Income Tax Act, Rules and Notifications.

 

Foreign Company:

As per Section 2(23A) Foreign Company means a company which is not a Domestic Company.

1. ITR-6

Applicable for Companies other than those claiming exemption u/s 11.

Company includes:  

Indian Company

Body corporate incorporated by or under the laws of country outside India.

Any institution, association, or body, whether incorporated or not and whether Indian or Non-Indian which is declared by general or special order of the Board, to be a Company, etc.

 

Forms Applicable

 

1. 

Form 26 AS

 AIS (Annual Information Statement)

Provided by:

Income Tax Department (It is available on the e-Filing Portal:

Login > e-File > Income Tax Return > View Form 26AS)

Details provided in the form:

Tax Deducted / Collected at Source.

Provided by:

Income Tax Department (It can be accessed after logging on to the Income Tax e-Filing portal)

 Go to e-filing portal > login > AIS

Details provided in the form:

  • Tax Deducted / Collected at Source
  • SFT Information
  • Payment of taxes
  • Demand / Refund

Other information (like Pending/Completed proceedings, GST Information, Information received from foreign government etc.)

Note: Information regarding (Advance Tax/SAT, Details of refund, SFT Transaction, TDS u/s 194 IA,194 IB,194M, TDS defaults) which were available in 26AS are now  available in AIS

  

2. Form 16A – Certificate u/s 203 of the Income Tax Act,1961 for TDS on Income other than Salary

Provided by

Details provided in the form

Deductor to Deductee

Form 16A is a certificate of Tax Deducted at Source (TDS) issued quarterly that captures the amount of TDS, Nature of Payments and the TDS payments deposited with the Income Tax Department

 

3. Form 3CA-3CD

Submitted by

Details provided in the form

Taxpayer requiring mandatory audit under any other law and who is required to get his accounts audited by an Accountant u/s 44AB. To be furnished  one month before the due date for furnishing the return of income under sub-section (1) of section 139.

Report of Audit of Accounts and Statement of Particulars required to be furnished u/s 44AB of the Income Tax Act, 1961

 

4. Form 3CE

Submitted by

Details provided in the form

Non resident taxpayer or Foreign Company doing business in India who is required to obtain a report from a accountant u/s 44DA for receipt of specified incomes from specified persons. To be furnished one month before due date of furnishing the return of income under sub-section (1) of section 139(1).

Report from an Accountant relating to receipt of income by way of royalty or fees for technical services from Government of India or an Indian concern

 

 

5. Form 29B

Submitted by

Details provided in the form

Taxpayer who is required to obtain a report from an accountant u/s 115JB of the Income Tax Act,1961. To be furnished one month before the due date for furnishing the return of income under sub-section (1) of section 139.   

Report, in case of a foreign company to which section 115JB applies, certifying that the book profit has been computed in accordance with the provisions of Section 115JB

 

Tax Slabs for Foreign Company for AY 2025-26 

 

Condition

Income Tax Rate

Royalty from Government or an Indian concern in pursuance of an agreement made with the Indian concern after 31st March 1961, but before 1st April 1976, or fees for rendering technical services in pursuance of an agreement made after 29th February 1964 but before 1st April 1976 and where such agreement has, in either case, been approved by the Central Government

50%

Any other income

40%

 

Surcharge, Marginal Relief and Health & Education cess

 

What is Surcharge?

Surcharge is an additional charge levied for persons earning income above the specified limits, it is charged on the amount of income tax calculated as per applicable rates:

  • 2% - Taxable income above ₹ 1 crore - Up to ₹ 10 crore
  • 5% - Taxable above ₹10 crore

What is Marginal Relief?

Marginal Relief is a relief from surcharge, provided in cases where the surcharge payable exceeds the additional income that makes the person liable for surcharge. The amount payable as surcharge shall not exceed the amount of income earned exceeding ₹ 1 crore and ₹ 10 crore respectively.

What is Health and Education cess?

Health and Education cess @ 4% shall also be paid on the amount of income tax plus surcharge (if any).

 

Note:  A Foreign Company not falling under Explanation 4 of section 115JB shall be liable to pay Minimum Alternate Tax (MAT) at 15% of book profit (plus surcharge and Health and Education cess as applicable) where the normal tax liability of the Company is less than 15% of book profit.

 

 

 

Investments / Payments / Incomes on which I can get Tax Benefit 

 

Tax deductions specified under Chapter VI-A of the Income Tax Act

Section 80G

Deduction towards donations made to prescribed funds, charitable institutions, etc.

Donation are eligible for deduction under the below categories:

Subject to qualifying limit

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100% of donation made

50%  of donation made

Without any limit

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100% of donation made

50% of donation made

 

 

 

 



Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000/-

 

Section 80GGA

Deduction towards donations made for Scientific Research or Rural Development.

Donation are eligible for deduction under the below categories:

Research Association or University, College or other Institution for:

  • Scientific Research
  • Social Science or Statistical Research

Association or institution for:

  • Rural Development
  • Conservation of Natural Resources or for afforestation

PSU or Local Authority or an Association or Institution approved by the National Committee for carrying out any eligible project

Funds notified by Central Government for

  • Afforestation
  • Rural Development

National Urban Poverty Eradication Fund as set up and notified by Central Government

 

Note:  No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000/-, or if Gross Total Income includes income from Profit / Gains from Business / Profession.

 

Section 80GGC

Sum contributed to Political Party or Electoral Trust is allowed as deduction (subject to certain conditions)

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Deduction of total amount paid through any mode other than cash 

 

Section 80IAB

 

Deduction in respect of Profits and Gains by an Undertaking or an Enterprise engaged in development of Special Economic Zone

(subject to certain conditions)

 

100% of profit for ten consecutive AYs out of fifteen AYs beginning from the year in which a Special Economic Zone has been notified by the Central Government

No deduction to an Assessee, where the development of Special Economic Zone begins on or after 1st April 2017
 
 

 

 

Section 80IE

Deduction to certain undertakings set up in North- Eastern states (subject to certain conditions)

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100% of profits for 10 AY subject to various conditions specified 

 

Section 80JJAA

Deduction in respect of Employment of New Workers / Employees, applicable to Assessee to whom Section 44AB applies (subject to certain conditions)

 

30% of additional employee cost for three AYs, subject to certain conditions

 

Section 80LA

Deduction for Income of Offshore Banking Units and International Financial Services Centre (subject to certain conditions)

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100% of specified income for 5 consecutive AYs, as per specified conditions

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Page Last Reviewed or Updated: 01-Jan-2025