About the Business Tax Calculator
What is the Business Tax Calculator?
How much tax your business pays depends on its legal form. A sole proprietor pays individual slab rates, partnership firms and LLPs pay a flat 30%, and domestic companies can choose the concessional 22% rate under Section 115BAA (giving up most exemptions) or pay 25%/30% depending on turnover.
Choose your business type and enter the taxable profit. This business tax calculator applies the correct rate, surcharge and 4% cess, and shows the effective tax rate and profit after tax.
How to use the Business Tax Calculator
- Type of Business (sample: Domestic company – Section 115BAA (22%))
- Taxable Business Profit (₹ per year) (sample: 50,00,000)
- Tax Regime (sample: New regime (default))
- Press Calculate Business Tax (results also refresh as you type). The result card shows the Total Tax Payable, along with Effective tax rate, Tax before surcharge & cess, Surcharge and Rates applied.
Formula used
Tax = Profit × Rate × (1 + Surcharge) × 1.04
- Firm / LLP = 30%, surcharge 12% if income exceeds ₹1 crore
- Company 115BAA = 22% + 10% surcharge = 25.168% effective
- Company (normal) = 25% (turnover ≤ ₹400 crore) or 30%; surcharge 7% above ₹1 crore, 12% above ₹10 crore
Marginal relief near surcharge thresholds and minimum alternate tax (MAT) are not included.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Type of Business | Domestic company – Section 115BAA (22%) |
| Taxable Business Profit (₹ per year) | 50,00,000 |
| Tax Regime | New regime (default) |
| Result | Value |
|---|---|
| Total Tax Payable | ₹12,58,400 |
| Effective tax rate | 25.17% |
| Tax before surcharge & cess | ₹11,00,000 |
| Surcharge | ₹1,10,000 |
| Rates applied | 22% + 10% surcharge + 4% cess |
| Profit after tax | ₹37,41,600 |
Tips for using the Business Tax Calculator
- Companies opting for 115BAA are exempt from MAT but lose most incentives and deductions.
- Salary and interest paid by a firm to partners are deductible within limits under Section 40(b).
- Pay advance tax in four instalments to avoid interest under Sections 234B and 234C.