Meaning of ‘Domestic Company’ – Income Tax

As per S.2(22A) of the Income Tax Act, 1961, unless the context otherwise requires, the term “domestic company” means an Indian company, or any other company which, in respect of its income liable to tax under this Act, has made the prescribed arrangements for the declaration and payment, within India, of the dividends (including dividends on preference shares) payable out of such income.


Under Income Tax a company may be a domestic company or a foreign company. Also there are provisions of differential treatment based on residential status thereof.