Returns and Forms Applicable for Foreign Company for AY 2026-27
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 to the Income Tax Act, 1961 Forms, Rules and Notifications.
Foreign Company:
As per Section 2(23A) of Income Tax Act, 1961, 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 of Income Tax Act, 1961. 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. |
|
2. ITR-7 |
|||
|
Applicable for Persons including Companies who are required to furnish returns u/s 139 (4A) or Section 139 (4B) or Section 139 (4C) or Section 139 (4D) of Income Tax Act, 1961 |
|||
|
139(4A) – |
139(4B) – |
139(4C) –
|
139(4D) – University, College or other Institution referred in Section 35 of Income Tax Act, 1961 |
Forms Applicable as per Income Tax Act, 1961
|
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) |
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. |
Details provided in the form:
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 of Income Tax Act, 1961: 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 requires 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 of Income Tax Act, 1961. |
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 |
|
Nonresident taxpayer or Foreign Company doing business in India who is required to obtain a report from an accountant u/s 44DA (Income Tax Act, 1961) 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) of Income Tax Act, 1961. |
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 of Income Tax Act, 1961. |
Report, in case of a foreign company to which section 115JB of Income Tax Act, 1961. apply, certifying that the book profit has been computed in accordance with the provisions of Section 115JB of Income Tax Act, 1961. |
Tax Slabs for Foreign Company for AY 2026-27
|
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 |
35% |
Surcharge, Marginal Relief and Health & Education cess
|
What is Surcharge? |
|
Surcharge is an additional charge levied for people earning income above the specified limits, it is charged on the amount of income tax calculated as per applicable rates:
|
|
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 of Income Tax Act, 1961 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 Tax Benefit is available
Tax deductions specified under Chapter VI-A of the Income Tax Act, 1961
|
Section 80G |
|
|
Deduction towards donations made to prescribed funds, charitable institutions, etc. Donations are eligible for deduction under the following categories: |
|
|
Subject to qualifying limit |
100% of donation made |
|
50% of donation made |
|
|
Without any limit |
100% of donation made |
|
50% of donation made |
|
|
Note: No deduction shall be allowed under this section in respect of donations made in cash exceeding ₹ 2000/- |
|
|
Section 80GGA |
|
Deduction towards donations made for Scientific Research or Rural Development. Donations are eligible for deduction under the following categories: |
|
Research Association or University, College or other Institution for:
|
|
Association or institution for:
|
|
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
|
|
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 donations 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) |
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) |
Deduction of total amount paid through any mode other than cash |
|
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) |
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 of Income Tax Act, 1961 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) |
100% of specified income for 5 consecutive AYs, as per specified conditions |
Share
Print
Print
