Net Income |
Rate of Income Tax |
1.1 Individuals (Other than senior and super senior citizen) |
|
Up to ₹ 2,50,000 |
Nil |
₹ 2,50,000 to ₹ 5,00,000 |
5% |
₹ 5,00,000 to ₹10,00,000 |
20% |
Above ₹ 10,00,000 |
30% |
1.2 Individuals (Senior Citizen) |
|
Up to ₹ 3,00,000 |
- |
₹ 3,00,000 to ₹ 5,00,000 |
5% |
₹ 5,00,000 to ₹ 10,00,000 |
20% |
Above ₹ 10,00,000 |
30% |
Individuals (Super Senior Citizen) | |
Up to ₹ 5,00,000 | - |
₹ 5,00,000 to ₹ 10,00,000 | 20% |
Above ₹ 10,00,000 | 30% |
Income |
₹ 50.00 Lacks to ₹ 1.00 Cr. |
₹ 1.00 Cr. To ₹ 2 Cr. |
₹ 2.00 Cr. To ₹ 5.00 Cr. |
₹ 5.00 Cr. To ₹ 10.00 Cr. |
Above ₹ 10.00 Cr. |
Rate % |
10% |
15% |
25% |
37% |
37% |
Income Range |
||
From |
To |
Margin Relief |
₹ 50.00 |
₹ 1.00 Cr. |
Amount payable as income tax and surcharge shall not exceed the total
amount payable as income tax on total income of ₹ 50 Lakh by more than the amount
of income that exceeds ₹ 50 Lakhs |
₹ 1.00 Cr. |
₹ 2.00 Cr. |
Amount payable as income tax and surcharge shall not exceed the total
amount payable as income-tax on total income of ₹ 1 crore by more than the amount
of income that exceeds ₹ 1.00 Cr. |
₹ 2.00 Cr. |
₹ 5.00 Cr. |
Amount payable as income tax and surcharge shall not exceed the total
amount payable as income-tax on total income of ₹ 2.00 Cr. by more than the
amount of income that exceeds ₹ 2.00 Cr. |
Above ₹ 5.00 Cr. |
Amount payable as income tax and surcharge shall not exceed the total
amount payable as income-tax on total income of ₹ 5.00 Cr. by more than the
amount of income that exceeds ₹ 5.00 Cr. |
D. Refund u /
s.87A
A resident person (whose net income does not exceed
Rs. 5,00,000) can benefit from reimbursement under section 87A. It is
deductible from income tax before calculating the education fee. The refund
amount is 100 percent of the income tax or Rs. 12,500, whichever is less.
2. Income Tax Rates for FY 2020-21
& FY 2021-22 for HUF, AOP, BOI, Other Artificial Juridical Person
Net Income Range |
Rate of Income Tax |
Up to Rs. 2,50,000 |
– |
Rs. 2,50,000 to Rs. 5,00,000 |
5% |
Rs. 5,00,000 to Rs. 10,00,000 |
20% |
Above Rs. 10,00,000 |
30% |
Note 1: Surcharge and Health & Education Cess: Same as Rates
applicable to Individuals given above
3. Special Income Rates for Individual & HUF u/s. 115BAC for FY
2020-21 & FY 2021-22
The Finance Act, 2020, has provided an option to Individuals and HUF for
payment of taxes at the following reduced rates from Assessment Year 2021-22
and onwards:
Total Income (Rs) |
Rate |
₹ 2,50,000 |
Nil |
₹ 2,50,001 to ₹ 5,00,000 |
5% |
₹ 5,00,001 ₹ 7,50,000 |
10% |
₹ 7,50,001 to ₹ 10,00,000 |
15% |
₹ 10,00,001 to ₹ 12,50,000 |
20% |
₹ 12,50,001 to ₹ 15,00,000 |
25% |
₹ 15,00,000 |
30% |
Note 1: Surcharge and Health & Education Cess as well as Rebate
u/s.87A: Same as Rates applicable to Individuals given above
Note 2: The option to pay tax at lower rates shall be available only if the
total income of assessee is computed without claiming specified exemptions or
deductions
4. Income Tax Rates applicable to Company for FY 2020-21 & FY
2021-22
4.1 Domestic Company
Normal Income-tax rates applicable in case of domestic companies are as
follows:
Turnover Criteria |
Assessment Year 2021-22 |
Assessment Year 2022-23 |
|
25% |
NA |
|
NA |
25% |
|
30% |
30% |
Surcharge : The amount of income-tax shall be increased
by a surcharge at the specified rate percentage of such tax:-
Range of Income |
₹ 1 Cr. to₹ 10 Cr. |
Above ₹ 10 Cr. |
Surcharge Rate |
7% |
12% |
The surcharge shall be subject to marginal relief.
Health and Education Cess : The amount of income-tax and the
applicable surcharge, shall be further increased by health and education cess
calculated at the rate of 4 percent of such income-tax and
surcharge.
Special Tax rates applicable to a domestic company
The special Income-tax rates applicable in case of domestic companies
are as follows:
Domestic Company |
Tax Rate |
♦ Where it opted for section 115BA |
25% |
♦ Where it opted for Section 115BAA |
22% |
♦ Where it opted for Section 115BAB |
15% |
Surcharge : The rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be flat 10% irrespective of amount of total income.
Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4 percent of such income-tax and surcharge.
MAT : The domestic company who has opted for special taxation regime under Section 115BAA & 115BAB is exempted from provision of MAT. However, no exemption is available in case where section 115BA has been opted.
In that case, the provisions of applies, tax payable cannot be less than 15% (+HEC) of “Book profit” computed as per section 115JB.
However, MAT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of a company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange.
4.2 Foreign Company
Nature of Income |
Tax Rate |
Royalty received from Government or an Indian concern in pursuance of
an agreement made with the Indian concern after March 31, 1961, but before
April 1, 1976, or fees for rendering technical services in pursuance of an
agreement made after February 29, 1964 but before April 1, 1976 and where
such agreement has, in either case, been approved by the Central Government |
50% |
Any other income |
40% |
Surcharge : The amount of income-tax shall
be increased by a surcharge at the specified rate percentage of such tax:-
Range of Income |
Rs. 1 Crore to Rs.10 Crore |
Above Rs. 10 Crore |
Surcharge Rate |
2% |
5% |
However, the surcharge shall be subject to marginal relief.
Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4 percent of such income-tax and surcharge.
5. Income Tax Rates for FY 2020-21 & FY 2021-22 for Partnership Firm & LLP
Partnership firm (including LLP) is taxable at 30%.
Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).
Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4 percent of such income-tax and surcharge
6. Income Tax Rates for FY 2020-21 & FY 2021-22 for Local Authority
Local authority is taxable at 30%.
Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education calculated at the rate of 4% of such income-tax and surcharge.
7. Income Tax Rates for FY 2020-21
& FY 2021-22 for Co-operative Society
7.1 Normal Rates
Taxable income |
Tax Rate |
Up to ₹ 10,000 |
10% |
₹ 10,000 to ₹ 20,000 |
20% |
₹ 20,000 |
30% |
Surcharge: The amount of income-tax shall be increased by a surcharge at
the rate of 12% of such tax, where total income exceeds one
crore rupees. However, the surcharge shall be subject to marginal relief
(where income exceeds one crore rupees, the total amount payable as income-tax
and surcharge shall not exceed total amount payable as income-tax on total
income of one crore rupees by more than the amount of income that exceeds one
crore rupees).
Health and Education Cess: The amount of income-tax and
the applicable surcharge, shall be further increased by health and education
cess calculated at the rate of four percent of such income-tax and surcharge.
7.2 Special tax rates applicable to a Co-operative societies
Taxable income |
Tax Rate |
Any income |
22% |