Monday, February 15, 2021

Income tax Slab rate F.Y. 2020-2021 and F.Y. 2021-2022






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%

 B. Surcharge:- is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:-

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%


Marginal relief is available at a surcharge as follows :-

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.

 C. Health and education tax: The health and education tax is applied at a rate of 4% on the amount of income tax plus the surcharge.

   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

  • Where its total turnover or gross receipt during the previous year 2018-19 does not exceed Rs. 400 crore

25%

NA

  • Where its total turnover or gross receipt during the previous year 2019-20 does not exceed Rs. 400 crore

NA

25%

  • Any other domestic company

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%. 

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 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%


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