CA Final Direct Tax Rates — AY 2026-27
Complete tax rates reference for CA Final Paper 4 (Direct Tax Laws & International Taxation). Covers individual, company, capital gains, MAT/AMT, TDS/TCS, and international taxation rates.
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Note: New Tax Regime (Section 115BAC) is the default regime from AY 2024-25. Health & Education Cess of 4% applies on tax + surcharge for all assessees.
Individual / HUF Tax Slabs
New Regime (Default) — Section 115BAC
| Income Range | Rate |
|---|---|
| Up to Rs 3,00,000 | Nil |
| Rs 3,00,001 - 7,00,000 | 5% |
| Rs 7,00,001 - 10,00,000 | 10% |
| Rs 10,00,001 - 12,00,000 | 15% |
| Rs 12,00,001 - 15,00,000 | 20% |
| Above Rs 15,00,000 | 30% |
Rebate u/s 87A: Full rebate if income ≤ Rs 7,00,000
Standard Deduction: Rs 75,000 for salaried/pensioners
Old Regime (Opt-in required)
| Income Range | Rate |
|---|---|
| Up to Rs 2,50,000 | Nil |
| Rs 2,50,001 - 5,00,000 | 5% |
| Rs 5,00,001 - 10,00,000 | 20% |
| Above Rs 10,00,000 | 30% |
Senior Citizen (60-80): Exempt up to Rs 3,00,000
Super Senior (80+): Exempt up to Rs 5,00,000
Surcharge on Income Tax — Individual/HUF
| Total Income | Old Regime | New Regime |
|---|---|---|
| Rs 50 Lakh - 1 Crore | 10% | 10% |
| Rs 1 Crore - 2 Crore | 15% | 15% |
| Rs 2 Crore - 5 Crore | 25% | 25% (max) |
| Above Rs 5 Crore | 37% | 25% (max) |
Marginal relief applicable where surcharge exceeds the additional income above the threshold.
Company Tax Rates
| Type | Rate | Surcharge | Effective Rate (incl. cess) |
|---|---|---|---|
| Domestic Company (Turnover ≤ 400 Cr in FY 2023-24) | 25% | 7% / 12% | ~26.00% / ~27.82% |
| Domestic Company (Other) | 30% | 7% / 12% | ~31.20% / ~34.94% |
| Section 115BAA (Concessional) | 22% | 10% | ~25.17% |
| Section 115BAB (New Manufacturing) | 15% | 10% | ~17.16% |
| Foreign Company (Income ≤ 1 Cr) | 40% | Nil | 41.60% |
| Foreign Company (Income 1-10 Cr) | 40% | 2% | 42.43% |
| Foreign Company (Income > 10 Cr) | 40% | 5% | 43.68% |
Capital Gains Tax Rates
| Asset Type | Holding Period for LT | STCG Rate | LTCG Rate |
|---|---|---|---|
| Listed equity shares / equity MF | 12 months | 20% | 12.5% (above Rs 1.25L) |
| Other listed securities (bonds, debentures) | 12 months | Slab rate | 12.5% |
| Unlisted shares | 24 months | Slab rate | 12.5% |
| Immovable property | 24 months | Slab rate | 12.5% |
| Other assets (gold, jewellery, etc.) | 24 months | Slab rate | 12.5% |
Presumptive Taxation
Turnover Limit: Up to Rs 2 Crore (Rs 3 Crore if digital receipts ≥ 95%)
Deemed Profit: 6% of digital turnover + 8% of other turnover
Turnover Limit: Up to Rs 50 Lakh (Rs 75 Lakh if digital receipts ≥ 95%)
Deemed Profit: 50% of gross receipts
Turnover Limit: Not more than 10 goods carriages at any time
Deemed Profit: Rs 1,000 per ton of gross vehicle weight per month (heavy) / Rs 7,500 per month (other)
MAT & AMT
MAT (Section 115JB)
15% of book profit
Applicability: All companies except those opting for 115BAA/115BAB
Credit: MAT credit can be carried forward for 15 years
AMT (Section 115JC)
18.5% of adjusted total income
Applicability: All persons other than companies claiming specified deductions
Credit: AMT credit can be carried forward for 15 years
Plus surcharge and 4% Health & Education Cess on MAT/AMT.
TDS Rates
| Section | Nature of Payment | Rate | Threshold |
|---|---|---|---|
| 192 | Salary | Slab rates | Basic exemption |
| 193 | Interest on Securities | 10% | Rs 10,000 |
| 194 | Dividend | 10% | Rs 5,000 |
| 194A | Interest (Other) | 10% | Rs 40,000 (Rs 50,000 for senior) |
| 194B | Lottery/Crossword | 30% | Rs 10,000 |
| 194C | Contractor - Ind/HUF | 1% | Rs 30,000 single / Rs 1,00,000 aggregate |
| 194C | Contractor - Others | 2% | Rs 30,000 single / Rs 1,00,000 aggregate |
| 194D | Insurance Commission | 5% | Rs 15,000 |
| 194H | Commission/Brokerage | 5% | Rs 15,000 |
| 194I(a) | Rent - P&M, Equipment | 2% | Rs 2,40,000 p.a. |
| 194I(b) | Rent - Land, Building | 10% | Rs 2,40,000 p.a. |
| 194J | Professional/Technical Fees | 10% | Rs 30,000 |
| 194J | Technical Services (FTS to specified) | 2% | Rs 30,000 |
| 194LA | Compensation on acquisition | 10% | Rs 2,50,000 |
| 194Q | Purchase of goods | 0.1% | Rs 50 Lakh |
| 195 | Payment to Non-resident | Rates in force / DTAA | Any amount |
| 196D | Income of FIIs | 20% | Any amount |
Higher TDS rate of 20% applies if PAN not furnished (Section 206AA). Section 206AB: higher rate for non-filers of ITR.
TCS Rates
| Section | Nature | Rate |
|---|---|---|
| 206C(1) | Scrap | 1% |
| 206C(1) | Tendu leaves | 5% |
| 206C(1) | Timber, forest produce | 2.5% |
| 206C(1) | Minerals (coal, lignite, iron ore) | 1% |
| 206C(1G) | Foreign remittance under LRS (above Rs 7 Lakh) | 20% (5% for education loan) |
| 206C(1H) | Sale of goods (above Rs 50 Lakh) | 0.1% |
International Taxation — Key Rates
| Item | Rate (without DTAA) |
|---|---|
| Royalty to non-resident (Section 115A) | 10% |
| FTS to non-resident (Section 115A) | 10% |
| Dividend to non-resident | 20% |
| Interest income of non-resident (Section 115A) | 20% (5% for specified bonds) |
| LTCG of non-resident (unlisted shares) | 10% without indexation |
| Equalisation Levy (e-commerce supply) | 2% of consideration |
Key Due Dates
| Date | Description |
|---|---|
| July 31 | ITR - Individual/HUF (non-audit) |
| October 31 | ITR - Companies & audit cases |
| November 30 | ITR - Transfer Pricing cases |
| March 31 | Belated/Revised return deadline |
| June 15 / Sep 15 / Dec 15 / Mar 15 | Advance tax installments (non-44AD) |
| 7th of following month | TDS deposit (non-government) |
| 30th April | TDS deposit for March (non-government) |
| May 31, July 31, Oct 31, Jan 31 | Quarterly TDS/TCS returns |
Key Penalties & Interest
| Section | Description | Rate/Amount |
|---|---|---|
| 234A | Late filing of return | 1% per month on tax due |
| 234B | Default in advance tax | 1% per month on shortfall |
| 234C | Deferment of advance tax | 1% per month on shortfall per quarter |
| 234F | Late filing fee | Rs 5,000 (Rs 1,000 if income ≤ Rs 5 Lakh) |
| 270A | Under-reporting of income | 50% of tax on under-reported income |
| 270A | Misreporting of income | 200% of tax on misreported income |
| 271B | Failure to get books audited | 0.5% of turnover or Rs 1.5 Lakh (whichever is lower) |
Frequently Asked Questions
What is the MAT rate for AY 2026-27?
MAT under Section 115JB is 15% of book profit (plus surcharge and cess). Companies opting for Section 115BAA or 115BAB are exempt from MAT.
What is the LTCG tax rate on listed equity shares?
LTCG on listed equity shares and equity-oriented mutual funds exceeding Rs 1,25,000 is taxed at 12.5% under Section 112A. The holding period for listed equity is 12 months.
What is the corporate tax rate under Section 115BAA?
Under Section 115BAA, domestic companies can opt for a concessional rate of 22% (effective ~25.17% with 10% surcharge and 4% cess). No MAT applies, but the company must forego certain exemptions and deductions (80-IA, 80-IAB, additional depreciation, etc.).
Practice CA Final MCQs
Test your Direct Tax knowledge with chapter-wise questions.