Regime choice and MAT modelling
A multi-year comparison of the 22% regime with the normal regime and MAT, including the use of any MAT credit you hold.
Corporate Tax Consultants in Kochi, Kerala
T K Chandy & Associates are corporate tax consultants in Kochi for private and public companies, start-ups and Indian subsidiaries of foreign groups. We advise on the company tax regime (22% concessional or 25%/30% normal), MAT, which is now a 14% final tax, advance tax and the company return, and represent companies in assessments and appeals.
- Led by a chartered accountant since 1994
- Member of SGA World International
- Kakkanad, Kochi
At a glance
Corporate tax at a glance
- Tax rates: 22% under the concessional regime (25.168% with surcharge and cess), or 25% (turnover up to ₹400 crore) or 30% under the normal regime.
- MAT change: From tax year 2026-27, MAT is 14% of book profit and is a final tax in the old regime; no new MAT credit is created.
- Key dates: Advance tax by 15 June, 15 September, 15 December and 15 March; company return by 31 October (extended to 21 November 2026 for FY 2025-26), or 30 November in transfer pricing cases.
- Our role: Regime and MAT modelling, tax computation and ITR-6, advance tax, and representation in scrutiny and appeals.
Every company in India pays income tax on its profits, whatever its size, and must file a return even in a loss year. The decisions that drive a company's tax bill are made long before the return: which tax regime to follow, how to treat depreciation, incentives and losses, how much advance tax to pay each quarter, and how related-party and cross-border transactions are priced.
As corporate tax consultants in Kochi, the chartered accountants at T K Chandy & Associates advise private limited companies, unlisted public companies, start-ups and Indian subsidiaries of foreign groups across Ernakulam and Kerala. We compute tax from the audited accounts, coordinate with the statutory and tax audits, prepare the company return, and answer the department when it asks questions.
2026 brings two changes that need attention. The Income-tax Act, 2025 applies from 1 April 2026, so the concessional regime is now in section 200 (formerly 115BAA) and MAT in section 206 (formerly 115JB). And Budget 2026 turned MAT into a 14% final tax for companies that stay in the old regime, which makes the regime decision more important than before.
Corporate tax services
Which Companies Do We Advise on Corporate Tax?
We work with companies at every stage, from the first return to complex group structures:
- Private limited companies in trading, manufacturing, construction, hospitality and services
- IT and ITES companies at Infopark, SmartCity and the Kochi SEZ
- Start-ups, including DPIIT-recognised entities planning losses and ESOPs
- Indian subsidiaries of foreign companies, with transfer pricing and treaty questions
- Seafood, spices, rubber and other exporters with incentive and forex issues
- Closely held family companies with director remuneration and related-party transactions
What the engagement covers
What Do Our Corporate Tax Services Include?
Tax computation
Adjustments from book profit to taxable income, depreciation under the tax rules, disallowances, loss set-off and carry forward.
Company return (ITR-6)
Preparation and filing of the company's return, consistent with the audited accounts, the tax audit report and GST returns.
Advance tax
Quarterly profit estimates before each instalment, so the company avoids interest for shortfall or deferment.
Tax planning
Planning for capital expenditure, director remuneration, dividends, buy-backs, group restructuring and the timing of income and expenses.
Transfer pricing coordination
Arm's-length review of related-party and international transactions, with our transfer pricing team.
Assessments and notices
Replies to faceless scrutiny, reassessment and adjustment notices, with submissions backed by records.
Appeals and representation
Appeals before the Commissioner (Appeals) and the Tribunal, and stay of demand applications.
Withholding and TDS review
A check that TDS on payments is right, because missed TDS leads to disallowance of the expense.
Company tax rates
What Is the Corporate Tax Rate in India?
Rates for domestic companies for FY 2025-26 and tax year 2026-27. Surcharge and 4% health and education cess are added to the base rate.
| Regime | Base rate | Surcharge | Effective rate (top) |
|---|---|---|---|
| Normal regime, turnover up to ₹400 crore (in the year two years earlier) | 25% | 7% above ₹1 crore income; 12% above ₹10 crore | 29.12% |
| Normal regime, other domestic companies | 30% | 7% above ₹1 crore income; 12% above ₹10 crore | 34.944% |
| Concessional regime: section 200 (formerly 115BAA) | 22% | 10% flat | 25.168% |
| New manufacturing companies: section 201 (formerly 115BAB) | 15% | 10% flat | 17.16% |
| MAT on book profit: section 206 (formerly 115JB), from tax year 2026-27 | 14% | As for the normal regime | Final tax; no new credit |
| Foreign companies | 35% | 2% above ₹1 crore; 5% above ₹10 crore | 38.22% |
The 15% manufacturing regime is open only to eligible companies set up on or after 1 October 2019 that started manufacturing by 31 March 2024; a company formed today cannot use it. Companies in the 22% and 15% regimes do not pay MAT but give up most deductions and incentives.
Budget 2026
How Does the MAT Change Affect Your Company?
Minimum Alternate Tax applies to companies in the normal (old) regime: if tax on book profit is higher than tax on taxable income, the company pays MAT. Until now, the excess created a MAT credit that could be used for up to 15 years.
From tax year 2026-27, under the changes made by Budget 2026: - the MAT rate falls from 15% to 14% of book profit; - MAT paid in the old regime is a final tax, and no new MAT credit is created; - existing MAT credit can be set off only if the company moves to the new (22%) regime, and only up to 25% of the tax liability in a year.
A company with large MAT credit, or with incentives that keep its taxable income well below its book profit, now has a real decision to make. Once a company opts for section 200, the choice cannot be withdrawn, so we model several years of profit, depreciation and credit use before you file. See our Union Budget 2026-27 highlights.
Our process
How Do We Handle a Company's Annual Tax Work?
Step01
Planning at the start of the year
We review last year's computation, decide the regime, and estimate profit for the June advance tax instalment.
Step02
Quarterly advance tax
Before each instalment date we update the estimate from management accounts and confirm the amount to pay.
Step03
Year-end review
We review provisions, depreciation, related-party transactions and TDS compliance before the books are closed.
Step04
Computation and audits
After the statutory audit, we prepare the tax computation and coordinate with the tax audit and transfer pricing report.
Step05
Return and follow-up
We file ITR-6, track processing and refunds, and handle any notice or assessment that follows.
Be ready
What Information Do We Need From Your Company?
Most of this comes from the year-end close and the audit file:
- Audited financial statements and auditor's report
- Trial balance and ledgers
- Fixed asset additions and disposals with dates
- Tax audit report, when ready
- Advance tax and self-assessment challans
- TDS returns and Form 26AS / AIS
- Details of related-party transactions
- Loan and share capital movements
- Brought-forward losses and MAT credit working
- Previous year's return and computation
- Board resolutions on dividends or buy-back
- Pending assessments and appeals
Worked example
Example: Regime Decision for a Kalamassery Manufacturer
A family-owned engineering company in Kalamassery, with turnover of about ₹60 crore, had stayed in the normal regime for years because of accelerated depreciation on new machinery. It had paid MAT in several years and carried a large MAT credit.
- We projected book profit, taxable income and planned capital expenditure for the next five years under both regimes, with the new 14% final MAT.
- In the old regime, MAT would apply in most years and the existing credit could not be used, because new credit is no longer created and set-off is allowed only in the new regime.
- Moving to section 200 meant giving up accelerated depreciation, but at 25.168% the company could use part of its old MAT credit each year, up to 25% of the tax liability.
The board chose to move to the concessional regime for tax year 2026-27. We filed the option within the time allowed, revised the advance tax estimates from the September instalment, and set up a schedule to track the remaining MAT credit.
Fees and timing
How Much Do Corporate Tax Services Cost in Kochi?
The fee depends on turnover and the volume of transactions, the number of group companies, whether the company has international or related-party transactions, incentives or MAT credit to model, the condition of the tax records, and whether we also carry out the statutory or tax audit. Representation in assessments and appeals is quoted per matter. We agree a fixed annual fee in writing after reviewing your last return and audited accounts. Start the year-end tax work as soon as the audit is under way, so there is time for planning before the return date.
Compliance calendar
What Are the Key Corporate Tax Deadlines?
Advance tax – first instalment
- Due date
- 15 June
- Note
- 15% of estimated tax
Advance tax – second instalment
- Due date
- 15 September
- Note
- 45% cumulative
Advance tax – third instalment
- Due date
- 15 December
- Note
- 75% cumulative
Advance tax – final instalment
- Due date
- 15 March
- Note
- 100% of estimated tax
Tax audit report
- Due date
- One month before the return due date
- Note
- Forms 3CA/3CD for FY 2025-26; Form 26 from tax year 2026-27
Company return
- Due date
- 31 October (21 November 2026 for FY 2025-26)
- Note
- ITR-6 for FY 2025-26
Return with transfer pricing report
- Due date
- 30 November
- Note
- Companies with international or specified domestic transactions
Why T K Chandy & Associates
Why Choose Our Corporate Tax Consultants in Kochi?
CA-led since 1994
Computations, opinions and submissions are reviewed by an experienced chartered accountant.
Audit and tax aligned
Statutory audit, tax audit, transfer pricing and the return handled together, so every number agrees.
Old and new Act
We map your positions from the 1961 Act to the Income-tax Act, 2025, section by section.
Based in Kakkanad
Close to Infopark, the Kochi SEZ and the industrial belts of Ernakulam, for meetings with management.
Cross-border groups
Support for foreign-owned companies, with associate firms in the UAE and the UK through SGA World International.
Confidential advice
Board-level planning handled discreetly and documented clearly.
Related services
Which Other Services Support Corporate Tax?
Tax audit
Tax audit under section 63 of the 2025 Act (section 44AB for FY 2025-26).
International tax & transfer pricing
Transfer pricing studies, the accountant's report and treaty advice.
Statutory audit
Companies Act audit, coordinated with the tax computation.
TDS compliance
TDS deduction, deposit and quarterly statements, so expenses are not disallowed.
Virtual CFO
Monthly management accounts that make advance tax estimates reliable.
Income tax for directors
Personal returns and planning for directors and shareholders.
Talk to us
Discuss your company's tax position
Share your company's turnover, current tax regime and any MAT credit or pending assessment. We will reply with a scope and fixed fee.
Prefer to talk now? Call +91 484 354 1530 or email [email protected].
Who prepared this page
Written and reviewed by chartered accountants at T K Chandy & Associates
This page is prepared by the audit and tax team at our Kakkanad, Kochi office and checked against the Companies Act, the Income-tax Act, GST law and ICAI standards. It is reviewed whenever the rules change.
- Last reviewed 29 October 2026
- Led by T K Chandy Vaidyan, chartered accountant since 1994
- Member of SGA World International
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Ask an expertFrequently asked questions
Corporate tax consultants in Kochi – frequently asked questions
Short answers to the questions clients in Kochi ask us most. Still unsure?
Talk to our team01.What is the corporate tax rate in India for 2026?
A domestic company pays 22% under the concessional regime (25.168% with surcharge and cess), or under the normal regime 25% if its turnover two years earlier was up to ₹400 crore and 30% otherwise, plus surcharge and cess. Foreign companies pay 35%.
02.What is the effective tax rate of 25.168%?
It is the 22% rate under section 200 (formerly 115BAA), plus a flat 10% surcharge and 4% health and education cess. It applies whatever the company's income.
03.Should my company opt for the 22% regime?
It usually suits companies with few deductions or incentives. Companies with large accelerated depreciation, incentives or MAT credit need a multi-year comparison, because the option cannot be withdrawn once made.
04.What is the new MAT rate from 2026?
From tax year 2026-27, MAT is 14% of book profit, down from 15%. In the old regime it is a final tax and no new MAT credit is created.
05.What happens to my existing MAT credit?
Under the Budget 2026 changes, existing MAT credit can be set off only if the company moves to the new concessional regime, and only up to 25% of its tax liability in a year. Staying in the old regime means the credit cannot be used.
06.Is the 15% tax rate still available for new manufacturing companies?
Only for eligible companies set up on or after 1 October 2019 that began manufacturing by 31 March 2024. The window was not extended, so a company setting up a factory today cannot opt for it.
07.When is advance tax due for companies?
In four instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Shortfalls attract interest.
08.What is the due date for filing a company's income tax return?
31 October for companies, extended by the CBDT to 21 November 2026 for FY 2025-26. Companies required to file a transfer pricing report file by 30 November.
09.Does a company with no income need to file a return?
Yes. Every company must file its income tax return each year, even with nil income or a loss. A loss can be carried forward only if the return is filed on time.
10.Is a tax audit compulsory for every company?
No. A tax audit under section 63 of the 2025 Act (section 44AB for FY 2025-26) is needed when turnover exceeds ₹1 crore, or ₹10 crore if cash receipts and payments are each within 5%. The statutory audit is separate and compulsory for every company.
11.What happens if TDS is not deducted on a company's expenses?
Part of the expense can be disallowed in the tax computation, and the company is liable for the tax not deducted with interest. Paying the TDS later restores the deduction in the year of payment.
12.How are dividends taxed?
Dividends are taxed in the hands of shareholders at their own rates. The company deducts TDS on dividends paid above the threshold.
13.Do you represent companies in faceless assessments?
Yes. We prepare written submissions, upload evidence on the e-filing portal, request video hearings where needed, and take the matter to appeal if required.
14.Do you advise foreign-owned companies in Kerala?
Yes. We advise Indian subsidiaries of foreign groups on corporate tax, transfer pricing and withholding tax, with associate firms in the UAE and the UK through SGA World International.
References:Union Budget 2026-27 – Memorandum (Finance Bill 2026) · Income Tax Department · Income Tax e-Filing portal · Income-tax Act 2025 (India Code) — reviewed 29 October 2026