Domestic Company Income Tax Return Filing for AY 2026-27
Domestic companies in India must comply with income tax return filing, applicable audit requirements, tax rates, surcharge, cess, and related forms for Assessment Year 2026-27. At Taxbrain.in, we help domestic companies understand the applicable return, forms, and tax compliance requirements in a simple and structured way.
If your company is an Indian company or falls within the definition of a domestic company under the Income Tax Act, this page will help you understand the filing process, key forms, tax slabs, and available deductions for AY 2026-27.
What is a domestic company?
As per Section 2(22A) of the Income Tax Act, 1961, a domestic company means an Indian company, or any other company that has made the prescribed arrangements for declaration and payment of dividends within India.
In simple terms, domestic companies are companies that are treated as Indian resident companies for tax purposes. Their taxability depends on their income, turnover, applicable sections, and whether they have opted for any concessional tax regime.
Returns applicable to domestic companies
The return form depends on the nature of the company and the exemption status. For most companies other than those claiming exemption under Section 11, ITR-6 is applicable.
ITR-7 is applicable to persons including companies who are required to furnish returns under Sections 139(4A), 139(4B), 139(4C), or 139(4D), such as charitable trusts, political parties, research associations, news agencies, universities, and certain other institutions.
Applicable return forms
- ITR-6: For companies other than those claiming exemption under Section 11.
- ITR-7: For entities covered under Sections 139(4A) to 139(4D).
Forms and compliance documents
Domestic companies may need to file several additional forms depending on their tax position, audit obligations, deductions, and foreign income reporting. The most common forms include Form 26AS, AIS, tax audit reports, transfer pricing reports, and special regime option forms.
Common forms for domestic companies
- Form 26AS: Shows TDS/TCS and tax-related credit details available on the e-filing portal.
- AIS: Annual Information Statement containing TDS/TCS, SFT information, tax payment details, refund/demand, and other information.
- Form 3CA-3CD: Tax audit report for taxpayers liable for audit under another law and under Section 44AB.
- Form 3CEB: Transfer pricing report for international transactions or specified domestic transactions.
- Form 16A: TDS certificate for income other than salary.
- Form 29B: MAT report for companies under Section 115JB.
- Form 67: Statement for foreign income and foreign tax credit.
- Form 10-IB: Option for taxation under Section 115BA.
- Form 10-IC: Option for taxation under Section 115BAA.
- Form 10-ID: Option for new manufacturing domestic companies under Section 115BAB.
- Form 10-CCB: Audit report for deductions under Sections 80-I, 80-IA, 80-IB, 80-IC, 80-IE.
- Form 10-CCBBA: Report for deduction under Section 80-ID(3)(iv).
- Form 10-CCBC: Report for deduction under Section 80-IB(11B).
Tax rates for AY 2026-27
Domestic company tax rates depend on turnover and the tax regime chosen. For AY 2026-27, companies with turnover or gross receipts not exceeding ₹400 crore in the relevant previous year are taxed at 25%, while other domestic companies are taxed at 30%.
Income tax rates
Surcharge, cess, and MAT
Surcharge is charged on the amount of income tax when taxable income exceeds prescribed limits. For domestic companies, surcharge is 7% when taxable income exceeds ₹1 crore up to ₹10 crore, and 12% when taxable income exceeds ₹10 crore. For companies opting for Section 115BAA or 115BAB, surcharge is 10%.
Health and Education Cess is charged at 4% on income tax plus surcharge, if applicable. Marginal relief may apply where the surcharge amount exceeds the additional income that triggered the surcharge.
Minimum Alternate Tax (MAT) is generally 15% of book profit plus surcharge and cess, where normal tax is lower than MAT. A company that is a unit of an International Financial Services Centre and derives income solely in convertible foreign exchange is liable for MAT at 9% plus surcharge and cess. Companies opting for Sections 115BAA and 115BAB are exempt from MAT.
Deductions available to domestic companies
Domestic companies can claim deductions under several Chapter VI-A provisions depending on eligibility and conditions. These deductions can reduce taxable income if the company satisfies the specific business or compliance requirements under the Act.
Important deductions
- Section 80G: Donation to prescribed funds and institutions, subject to conditions and limits.
- Section 80GGA: Donation for scientific research or rural development, subject to conditions.
- Section 80GGB: Contribution to political parties or electoral trusts, subject to conditions.
- Section 80IA: Deduction for eligible infrastructure and certain power undertakings.
- Section 80IAB: Deduction for development of Special Economic Zones.
- Section 80IAC: Deduction for eligible start-ups.
- Section 80IB: Deduction for specified industrial undertakings and eligible businesses.
- Section 80IC: Deduction for undertakings in specified states.
- Section 80IE: Deduction for certain undertakings set up in North-Eastern states.
- Section 80JJA: Deduction for business of collecting and processing biodegradable waste.
- Section 80JJAA: Deduction for employment of new workers or employees.
- Section 80LA: Deduction for income of Offshore Banking Units and IFSC units.
- Section 80M: Deduction for inter-corporate dividend subject to conditions.
Special tax regime options
Certain domestic companies can opt for concessional tax regimes by filing the relevant forms within the due date of filing the return.
Available options
- Section 115BA: 25% tax rate for eligible domestic companies through Form 10-IB.
- Section 115BAA: 22% tax rate through Form 10-IC.
- Section 115BAB: 15% tax rate for eligible new manufacturing companies through Form 10-ID.
These regimes may restrict access to certain deductions, including many deductions under Chapter VI-A, except those specifically permitted under the law such as Section 80JJAA and Section 80M in relevant cases.
Why choose Taxbrain.in
Tax compliance for domestic companies is not just about filing a return. It also requires correct form selection, proper audit support, accurate tax computation, deduction review, and timely compliance with special regime forms.
Taxbrain.in helps businesses with:
- Correct ITR selection.
- Tax computation and return preparation.
- Audit-related coordination.
- Special regime option filing.
- Deduction and compliance review.
- End-to-end income tax filing support.
Documents required
Before filing, a domestic company should keep the following ready:
- PAN of the company.
- Financial statements.
- Trial balance and ledger.
- Form 26AS and AIS.
- Audit report, if applicable.
- TDS certificates like Form 16A.
- Details of foreign income or foreign tax credit, if any.
- Details of deductions, donations, and investments.
- Details of special tax regime option, if applicable.
Who should use this service?
This service is suitable for:
- Private limited companies.
- Public limited companies.
- Indian companies with business income.
- Foreign-incorporated companies treated as domestic for tax purposes.
- Companies requiring ITR-6 or related compliance support.
Frequently asked questions
1. Which ITR form is applicable to a domestic company?
For most domestic companies, ITR-6 is applicable. ITR-7 applies only to entities covered under Sections 139(4A), 139(4B), 139(4C), or 139(4D).
2. What is the tax rate for domestic companies in AY 2026-27?
The standard tax rate is 25% for companies within the specified turnover limit, and 30% for other domestic companies. Concessional rates under Sections 115BA, 115BAA, and 115BAB may also apply.
3. Is MAT applicable to domestic companies?
Yes, MAT generally applies at 15% of book profit, plus surcharge and cess. However, companies opting for Sections 115BAA and 115BAB are exempt from MAT.
4. What is Form 10-IC used for?
Form 10-IC is used by a domestic company to opt for taxation under Section 115BAA at the concessional rate of 22%.
5. What is Form 10-ID used for?
Form 10-ID is filed by eligible new manufacturing domestic companies incorporated on or after 1 October 2019 to opt for the 15% tax rate under Section 115BAB.
6. Is Health and Education Cess applicable?
Yes. Health and Education Cess at 4% is payable on the amount of income tax plus surcharge, if applicable.
7. Can a domestic company claim Section 80M deduction?
Yes, Section 80M may be available where the domestic company receives dividends and redistributes them to shareholders within the prescribed time and conditions.
8. What is AIS and why is it important?
AIS is the Annual Information Statement and includes TDS/TCS, tax payment, SFT, refund or demand, and other tax-related information. It is important for return reconciliation and accurate reporting.
9. Are donations in cash eligible for deduction under Section 80G?
No deduction is allowed for cash donations exceeding ₹2,000 under Section 80G.
10. Why should a domestic company file tax return on time?
Timely filing helps avoid late fees, interest, notice exposure, and compliance issues. It also ensures proper reporting of deductions, MAT, credits, and special regime elections.
Call to action
Need help with domestic company income tax filing for AY 2026-27? Taxbrain.in can help you prepare the right return, review applicable forms, and file accurately and on time.