Foreign companies in India for AY 2026-27 (FY 2025-26) require specific ITR forms like ITR-6 or ITR-7, audit reports such as Form 3CE and 29B, and compliance with 35% tax rates plus surcharge and cess. Taxbrain.in provides end-to-end filing services, ensuring accuracy with AIS, TDS certificates, and deductions under Chapter VI-A.
Definition of Foreign Company
As per Section 2(23A) of the Income Tax Act, 1961, a foreign company means a company which is not a domestic company.[data] “Company” includes Indian companies, bodies corporate incorporated under foreign laws, or any institution/association/body (incorporated or not, Indian or non-Indian) declared as a company by Board order.[data]
Applicable ITR Forms
ITR-6
Applicable for companies other than those claiming exemption under Section 11.[data] Covers Indian companies, foreign-incorporated bodies corporate, and declared companies.[data]
ITR-7
For persons/companies required under Section 139(4A), 139(4B), 139(4C), or 139(4D).[data]
- 139(4A): Income from property held under trust for charitable/religious purposes.[data]
- 139(4B): Political party chief executive officer.[data]
- 139(4C): Research associations, news agencies, etc., under Section 10.[data]
- 139(4D): Universities/colleges/institutions under Section 35.[data]
Essential Supporting Forms
Form 26AS and AIS
Download from e-Filing portal: Login > e-File > Income Tax Return > View Form 26AS (TDS/TCS) or AIS (full details).[data] AIS includes SFT, tax payments, demands/refunds, proceedings, GST, foreign info; shifted from 26AS: advance tax/SAT, refunds, SFT, TDS u/s 194-IA/IB/M.[data]
Form 16A
Certificate u/s 203 for TDS on non-salary income, issued quarterly by deductor to deductee.[data] Captures TDS amount, payment nature, and deposits.[data]
Form 3CA-3CD
For taxpayers mandatorily audited under other laws and u/s 44AB; furnish one month before Section 139(1) ITR due date.[data] Report of audit accounts and particulars u/s 44AB.[data]
Form 3CE
For non-resident/foreign company u/s 44DA on royalty/technical services from Government/Indian concern; due one month before Section 139(1).[data] Accountant report on such income.[data]
Form 29B
For taxpayers u/s 115JB; due one month before Section 139(1).[data] Certifies book profit computation per 115JB for foreign companies.[data]
Tax Slabs for AY 2026-27
Surcharge, Marginal Relief, Cess
Surcharge: Additional on tax – 2% (income > ₹1 Cr up to ₹10 Cr), 5% (> ₹10 Cr).[data] Marginal Relief: Limits surcharge to excess over ₹1 Cr/₹10 Cr thresholds.[data] Health & Education Cess: 4% on tax + surcharge.[data]
MAT Note: Foreign companies not under Explanation 4 to 115JB pay 15% MAT on book profit + surcharge/cess if normal tax <15%.[data]
Investments with Tax Benefits (Chapter VI-A)
Foreign companies may claim where eligible.[data]
Section 80G: Donations
- Subject to limit: 100%/50% of donation.
- Without limit: 100%/50% of donation.
No cash donations > ₹2,000.[data]
Section 80GGA: Scientific/Rural Development Donations
To research bodies (scientific/social/statistical), rural development/conservation/afforestation institutions, PSUs/local authorities, notified funds (afforestation/rural/urban poverty).
No cash > ₹2,000; ineligible if business income.[data]
Section 80GGC
Full non-cash contributions to political parties/electoral trusts.[data]
Section 80IAB
100% profits from SEZ development (pre-1 Apr 2017).[data]
Section 80IE
100% profits for 10 AYs for North-East undertakings.[data]
Section 80JJAA
30% additional employee cost for 3 AYs (u/s 44AB assessees).[data]
Section 80LA
100% specified income for 5 AYs for offshore banking/IFSC units.[data]
Filing Process and Due Dates
Gather AIS/26AS, Form 16A, audit reports.[data] Due dates: Non-audit ITR ~31 Jul/Aug 2026; audit ~31 Oct; TP ~30 Nov; audit forms 1 month prior.
Taxbrain.in Services: We handle e-filing, audits, optimizations for foreign companies – compliant and efficient.
Page Last Reviewed/Updated: 09-Apr-2026
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FAQs
What defines a foreign company under Income Tax Act?
Not a domestic company per Section 2(23A); includes foreign-incorporated bodies.[data]
Which ITR for foreign companies not claiming Section 11 exemption?
What details does AIS provide over old 26AS?
SFT, payments, GST, foreign info, proceedings; now includes advance tax/TDS defaults.[data]
When is Form 3CE due for foreign companies?
One month before ITR u/s 139(1).[data]
What is Form 29B used for?
Certifies MAT book profit u/s 115JB.[data]
Are Chapter VI-A deductions available to foreign companies?
Yes, select ones like 80G/80GGA if conditions met (e.g., no cash >₹2,000).[data]
What is the base tax rate for foreign company income?
35%, plus 50% for specific old royalties.