Private Limited Companies (Pvt. Ltd.)—whether domestic or foreign entities operating in India—are governed by strict compliance rules under the Income Tax Act, 1961. Every company must file an Income Tax Return (ITR) irrespective of profit, loss, or even if no business is conducted during the year.
For the Financial Year 2024–25 (Assessment Year 2025–26), the last date for tax filing by companies is 31st October 2025. This deadline applies to both domestic companies registered in India and foreign companies with income taxable in India.
This guide covers due dates, applicable tax rates, forms, required documents, penalties, and compliance requirements for companies in India.
Why Tax Filing is Mandatory for Companies
- Statutory Requirement – Every company, regardless of income or activity, must file an ITR.
- Avoid Penalties – Non-compliance leads to hefty fines and prosecution risks.
- Loss Carry Forward – Losses (like depreciation, business losses) can be carried forward only if the return is filed before the deadline.
- Global Credibility – For foreign companies, filing enhances regulatory compliance and investor trust.
- Loan & Tender Eligibility – Banks, investors, and government bodies often demand ITR copies for sanctioning funds.
Due Date for Company Tax Filing (FY 2024–25)
- Domestic & Foreign Companies (with audit requirement):
- 31st October 2025 – Final due date for ITR filing and submission of audit reports.
- Companies engaged in international or specified domestic transactions:
- 31st October 2025 – File Form 3CEB (Transfer Pricing Report) along with ITR.
👉 Unlike individuals and LLPs, companies always require audit under the Companies Act, hence their due date is 31st October every year.
Applicable Tax Rates for Companies in FY 2024–25
1. Domestic Private Limited Companies
- Turnover ≤ ₹400 crore (in FY 2022–23):
- Tax Rate = 25%
- Other Domestic Companies:
- Tax Rate = 30%
- Optional Section 115BAA (New Regime):
- Flat 22% (without exemptions & incentives).
- Optional Section 115BAB (New Manufacturing Companies incorporated on/after 1st Oct 2019):
- Flat 15%
2. Foreign Companies
- Royalty/Technical Services (under agreement approved by Govt.): 50%
- Other Income: 40%
3. Surcharge
- 7% if total income > ₹1 crore (domestic)
- 12% if total income > ₹10 crore (domestic)
- 2%/5% surcharge for foreign companies based on income slabs
4. Health & Education Cess
- 4% on tax + surcharge
👉 Effective tax rate may vary from 22% to 35% depending on turnover, type of company, and chosen scheme.