Business Income Tax Calculator
Calculate income tax for Proprietorship, Partnership, LLP & Companies. Includes presumptive taxation under 44AD/44ADA.
Disclaimer: This calculator provides estimates based on Finance Bill 2025 (AY 2026-27). Tax laws are complex and subject to change. Please consult a qualified Chartered Accountant for accurate tax planning and filing.
Business Income Tax Calculator
This business income tax calculator helps you estimate tax liability for different business structures including Proprietorship, Partnership Firms, LLPs, and Companies. It incorporates the latest tax rates from Finance Bill 2025.
Tax Rates by Business Type (FY 2025-26)
| Business Type | Tax Rate | Surcharge |
|---|---|---|
| Proprietorship / Individual | Slab Rates (0-30%) | 10-37% |
| Partnership Firm | 30% | 12% |
| LLP (Limited Liability Partnership) | 30% | 12% |
| Domestic Company (Turnover ≤ ₹400 Cr) | 25% | 7-12% |
| Domestic Company (Turnover > ₹400 Cr) | 30% | 7-12% |
| Section 115BAA (Opted) | 22% | 10% |
| Section 115BAB (New Manufacturing) | 15% | 10% |
| Foreign Company | 40% | 2-5% |
+ Health & Education Cess @ 4% on tax + surcharge
New Tax Regime Slabs (Individuals/Proprietors)
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 - ₹8,00,000 | 5% |
| ₹8,00,001 - ₹12,00,000 | 10% |
| ₹12,00,001 - ₹16,00,000 | 15% |
| ₹16,00,001 - ₹20,00,000 | 20% |
| ₹20,00,001 - ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Rebate u/s 87A: Under the new regime, individuals with taxable income up to ₹12 Lakh pay ZERO tax due to the rebate.
Presumptive Taxation (Section 44AD & 44ADA)
Section 44AD - For Businesses
- • 6% of turnover (digital transactions)
- • 8% of turnover (cash transactions)
- • Applicable: Turnover up to ₹3 Cr (digital) / ₹2 Cr (cash)
- • No need to maintain books of accounts
Section 44ADA - For Professionals
- • 50% of gross receipts is deemed profit
- • For: Doctors, Lawyers, CAs, Architects, Engineers, etc.
- • Applicable: Gross receipts up to ₹75 Lakh
- • Simplified compliance
Surcharge Rates
| Income Level | Individuals/HUF | Firms/LLP | Companies |
|---|---|---|---|
| ₹50L - ₹1 Cr | 10% | - | - |
| ₹1 Cr - ₹2 Cr | 15% | 12% | 7% |
| ₹2 Cr - ₹5 Cr | 25% | 12% | 7% |
| Above ₹5 Cr / ₹10 Cr | 37% | 12% | 12% |
Choosing the Right Business Structure
Proprietorship
Best for small businesses, freelancers. Simple compliance. Taxed at individual slab rates.
LLP
Good for professionals and medium businesses. Limited liability + 30% flat tax. No DDT.
Private Limited Company
Best for scaling, raising funds. 22% tax under 115BAA. More compliance but better credibility.
Frequently Asked Questions
Which is better - Old or New tax regime?
For most individuals with income up to ₹12 Lakh, the new regime is better (zero tax due to rebate). If you have significant deductions (80C, HRA, home loan interest > ₹2L), old regime may be better. Use this calculator to compare both.
What is Section 115BAA?
Section 115BAA allows domestic companies to pay tax at 22% (+ surcharge + cess) if they forgo certain deductions and exemptions. The effective tax rate becomes about 25.17%. Once opted, it cannot be withdrawn.
Should I opt for presumptive taxation?
If your actual profit margin is less than 6-8% (for business) or 50% (for profession), presumptive taxation may result in higher tax. Calculate both ways before opting. Once opted, you must continue for 5 years.