Indian Corporate Tax Rate: What You Need to Know in 2025

When you hear Indian corporate tax rate, the percentage of profit that companies based in India must pay to the government. Also known as company tax rate, it’s one of the biggest factors shaping how businesses grow, invest, and plan for the future. In 2024, the standard rate dropped to 25% for eligible domestic companies—and even lower at 15% for new manufacturing firms set up after October 2019. That’s not just a number. It’s a decision-maker for startups choosing where to register, for investors weighing returns, and for finance teams adjusting budgets.

The GST, a nationwide indirect tax on goods and services. Also known as Goods and Services Tax, it doesn’t replace corporate tax, but it shapes how companies track expenses and claim credits. If your business pays GST on raw materials or services, you can offset that against the GST you collect from customers. But corporate tax is different—it’s about what’s left after all costs, including GST, are paid. Then you pay the government a cut of your net profit. These two systems work side by side, and mixing them up can cost you money or trigger audits.

Then there’s the NRI tax status, the rules that determine how much tax non-resident Indians pay on income earned in India. Also known as NRI residential status, it ties directly into corporate tax when NRIs own or manage Indian companies. If you’re an NRI running a business from abroad, your company might still be taxed as a domestic entity—if it’s controlled and managed from India. That’s why so many founders track their days in the country. One extra month could change your tax bracket, your filing rules, and even your eligibility for lower corporate rates.

And don’t forget the Startup India scheme, a government program offering tax breaks and funding access to qualifying startups. Also known as Startup India funding, it gives new companies a 3-year tax holiday if they’re registered and meet specific criteria. That means zero corporate tax for three years on profits—no matter how big they grow. But you have to apply early, file correctly, and stay compliant. A lot of startups miss out because they assume the benefit is automatic. It’s not.

So what does all this mean for you? If you’re running a business in India, the corporate tax rate isn’t just a line on a form. It affects how much you reinvest, how fast you hire, and whether you expand or hold back. It connects to your loan eligibility, your investor negotiations, and even your long-term exit strategy. The posts below cover real cases: how companies cut their tax bills legally, why some startups pay nothing for years, how NRI owners avoid double taxation, and what happens when GST rules clash with income tax filings. No theory. No fluff. Just what works in India today.