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 |
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Applicable for Companies other than those claiming exemption u/s 11. Company includes:
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Forms Applicable
1. |
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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 |
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3. Form 3CA-3CD |
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4. Form 3CE |
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5. Form 29B |
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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:
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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.
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Investments / Payments / Incomes on which I can get Tax Benefit
Tax deductions specified under Chapter VI-A of the Income Tax Act
Section 80G |
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Deduction towards donations made to prescribed funds, charitable institutions, etc. Donation are eligible for deduction under the below categories:
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Section 80GGA |
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Deduction towards donations made for Scientific Research or Rural Development. Donation are eligible for deduction under the below categories:
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 |
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Sum contributed to Political Party or Electoral Trust is allowed as deduction (subject to certain conditions) |
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Section 80IAB |
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Deduction in respect of Profits and Gains by an Undertaking or an Enterprise engaged in development of Special Economic Zone (subject to certain conditions) |
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Section 80IE |
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Deduction to certain undertakings set up in North- Eastern states (subject to certain conditions) |
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Section 80JJAA |
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Deduction in respect of Employment of New Workers / Employees, applicable to Assessee to whom Section 44AB applies (subject to certain conditions) |
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Section 80LA |
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Deduction for Income of Offshore Banking Units and International Financial Services Centre (subject to certain conditions) |
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