1- Income Tax Rate & Slab for Individuals & HUF:
(A) Individual (Resident or Resident but not Ordinarily Resident or non-resident), who is of the age of fewer than 60 years on the last day of the relevant previous year & for HUF:
| Taxable income | Tax Rate (Existing Scheme) | Tax Rate (New Scheme) |
|---|---|---|
| Up to Rs. 2,50,000 | Nil | Nil |
| Rs. 2,50,001 to Rs. 5,00,000 | 5% | 5% |
| Rs. 5,00,001 to Rs. 7,50,000 | 20% | 10% |
| Rs. 7,50,001 to Rs. 10,00,000 | 20% | 15% |
| Rs. 10,00,001 to Rs. 12,50,000 | 30% | 20% |
| Rs. 12,50,001 to Rs. 15,00,000 | 30% | 25% |
| Above Rs. 15,00,000 | 30% | 30% |
(B) Resident or Resident but not Ordinarily Resident senior citizen, i.e., each individual, being an inhabitant or Resident yet not Ordinarily Resident in India, who is of the age of 60 years or more yet under 80 years whenever during the earlier year:
| Taxable income | Tax Rate (Existing Scheme) | Tax Rate (New Scheme) |
|---|---|---|
| Up to Rs. 2,50,000 | Nil | Nil |
| Rs. 2,50,001 to Rs. 3,00,000 | Nil | 5% |
| Rs. 3,00,001 to Rs. 5,00,000 | 5% | 5% |
| Rs. 5,00,001 to Rs. 7,50,000 | 20% | 10% |
| Rs. 7,50,001 to Rs. 10,00,000 | 20% | 15% |
| Rs. 10,00,001 to Rs. 12,50,000 | 30% | 20% |
| Rs. 12,50,001 to Rs. 15,00,000 | 30% | 25% |
| Above Rs. 15,00,000 | 30% | 30% |
(C) Resident or Resident but not Ordinarily Resident super senior citizen, i.e., each individual, being an inhabitant or Resident but not Ordinarily Resident in India, who is of the age of 80 years or more at whenever during the earlier year:
| Taxable income | Tax Rate (Existing Scheme) | Tax Rate (New Scheme) |
|---|---|---|
| Up to Rs. 2,50,000 | Nil | Nil |
| Rs. 2,50,001 to Rs. 5,00,000 | Nil | 5% |
| Rs. 5,00,001 to Rs. 7,50,000 | 20% | 10% |
| Rs. 7,50,001 to Rs. 10,00,000 | 20% | 15% |
| Rs. 10,00,001 to Rs. 12,50,000 | 30% | 20% |
| Rs. 12,50,001 to Rs. 15,00,000 | 30% | 25% |
| Above Rs. 15,00,000 | 30% | 30% |
Surcharge:
a) 10% of Income-tax where total income surpasses Rs.50 lakh.
b) 15% of Income-tax where total income surpasses Rs.1 crore.
c) 25% of Income-tax where total income surpasses Rs.2 crore.
d) 37% of Income-tax where total income surpasses Rs.5 crore.
Note: Upgraded surcharge rates (25% or 37%) are not applicable in case of specified incomes I.e. short-term capital gain u/s 111(A), long-term capital gain u/s 112(A), and short-term or long-term capital gain u/s 115AD(1)(b).
Education cess: 4% of income tax plus surcharge
Note:
- A resident or Resident but not Ordinarily Resident individual is entitled to a rebate under section 87(A) if his total income does not surpassed Rs. 5, 00,000.
- The amount of rebate shall be 100% of income tax or Rs. 12,500, whichever is less. rebate under section 87(A) is available in both schemes I.e. existing scheme as well as the new scheme.
2- Income Tax Rates for AOP/BOI/Any other Artificial Juridical Person:
| Taxable income | Tax Rate |
|---|---|
| Up to Rs. 2,50,000 | Nil |
| Rs. 2,50,001 to Rs. 5,00,000 | 5% |
| Rs. 5,00,001 to Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
Surcharge:
a) Rate 10% of Income-tax where total income surpasses Rs.50 lakh
b) Rate 15% of Income-tax where total income surpasses Rs.1 crore
c) Rate 25% of Income-tax where total income surpasses Rs.2 crore
d) Rate 37% of Income-tax where total income surpasses Rs.5 crore
Note: Upgraded surcharge rates (25% or 37%) are not applicable in case of specified incomes I.e. short-term capital gain u/s 111(A), long-term capital gain u/s 112(A) & short-term or long-term capital gain u/s 115AD(1)(b).
Education cess: 4% of income-tax plus surcharge.
3- Tax Rate For Partnership Firm:
A partnership firm (including LLP (Limited Liability Partnership)) is taxable at 30%.
Surcharge: 12% of Income-tax where total income surpasses Rs. 1 crore
Education cess: 4% of Income-tax plus surcharge
4- Income Tax Slab Rate for Local Authority:
A local authority is Income taxable at 30%.
Surcharge: 12% of Income-tax where total income surpasses Rs. 1 crore
Education cess: 4% of tax plus surcharge
5- Tax Slab Rate for Domestic Company:
A local company is taxable at 30%. Though, the tax rate is 25% if turnover or gross receipt of the company does not surpass Rs. 400 crore in the last or earlier year.
| Particulars | Tax Rate(%) |
|---|---|
| If turnover or gross receipt of the company does not exceed Rs. 400 crore in the previous year 2018-19 | 25% |
| If the company opted section 115BA (Note 1) | 25% |
| If the company opted for section 115BAA (Note 2) | 22% |
| If the company opted for section 115BAB (Note 3) | 15% |
| Any other domestic company | 30% |
Note 1: Section 115(BA) – A domestic company which is registered on or after March 1st, 2016, and engaged in the business of manufacture or production of any article or thing and examination in relation to (or dissemination of) such article or thing manufactured or produced by it.
And also It is not claiming any deduction u/s 10(AA), 32(AC), 32(AD), 33(AB), 33(ABA), 35(1)(ii)/(iia)/(iii)/35(2AA)/(2AB), 35(AC), 35(AD), 35(CCC), 35(CCD), section 80(H) to 80(TT) (Other than 80JJAA) or additional depreciation, can opt section 115(BA) on or before the due date of return by filing Form 10-IB online.
A company cannot claim any brought forwarded losses (if such loss is related to the deductions specified in the above point).
Note 2: Section 115(BAA) – Total income of a company is taxable at the rate of 22% (from A.Y 2020-21) if the following conditions are satisfied:
>> Company/Organization is not claiming any deduction u/s 10(AA )or 32(1)(iia) or 32AD or 33AB or 33ABA or 35(1)(ii) / (iia) / (iii) / 35(2AA) / (2AB) or 35(AD) or 35(CCC) or 35(CCD) or section 80(H) to 80(TT) (Other than 80(JJAA)).
>> Company/Organization is not claiming any brought forwarded losses (if such loss is related to the deductions specified in the above point).
>> Provisions of MAT are not applicable to such a company after exercising of option. a company cannot claim the MAT credit (if any is available when exercising section 115(BAA)).
Note 3: Section 115BAB – Total income of a company is taxable at the rate of 15% (from A.Y 2020-21) if the following conditions are satisfied:
>> Company/Organization (not covered in u/s 115(BA) and 115(BAA)) is registered on or after October 1st, 2019, and commenced manufacturing on or before 31st March 2023.
>> Company/Organization is not formed by splitting up or reconstructing a business already in existence.
>> Company/Organization does not use any machinery or plant previously used for any purpose.
>> Company/Organization does not use any building previously used as a hotel or a convention center, as the case may be.
>> Company/Organization is not engaged in any business other than the business of manufacture or production of any article or thing and examination in relation to (or dissemination of) such article or thing manufactured or produced by it. Business of manufacture or production shall not include the business of –
- Development of computer software;
- Mining ;
- Conversion of marble blocks or similar items into slabs;
- Bottling of gas into cylinder;
- Printing of books or production of cinematographic film; or
- Any other notified by Central Govt.
>> Company/Organization is not claiming any deduction u/s 10AA or 32(1)(iia) or 32(AD) or 33(AB) or 33(ABA) or 35(1)(ii) / (iia) / (iii) / 35(2AA) / (2AB) or 35(AD) or 35(CCC) or 35(CCD) or section 80(H) to 80(TT) (Other than 80(JJAA) and 80(M)).
>> Company/Organization is not claiming any brought forwarded losses (if such loss is related to the deductions specified in the above point).
>> Provisions of MAT are not applicable to such companies after exercising of option. the company cannot claim the MAT credit (if any is available when exercising section 115(BAA)).
Surcharge:
a) 7% of Income-tax where total income surpasses Rs.1 crore
b) 12% of Income-tax where total income surpasses Rs.10 crore
c) 10% of income tax where local company/Organization opted for u/s 115(BAA) and 115(BAB)
Education cess: 4% of Income-tax plus surcharge
6- Tax Rates for Foreign Company:
A foreign company/Organization is taxable at 40%
Surcharge:
a) 2% of Income-tax where total income surpasses Rs. 1 crore.
b) 5% of Income-tax where total income surpasses Rs. 10 crores.
Education cess: 4% of Income-tax plus surcharge
7- Income Tax Slab for Co-operative Society:
| Taxable income | Tax Rate (Existing Scheme) | Tax Rate (New Scheme) |
|---|---|---|
| Up to Rs. 10,000 | 10% | |
| Rs. 10,001 to Rs. 20,000 | 20% | 22% |
| Above Rs. 20,000 | 30% |
Surcharge:
a) 12% of Income-tax where total income surpasses Rs. 1 crore
b) In the case of the Concessional scheme, the surcharge rate is 10%
Education cess: 4% of Income-tax plus surcharge
Disclaimer:
This information has been taken from https://www.incometaxindia.gov.in/news/finance-act-2020.pdf.
Tax laws are subject to amendments made thereto from time to time.
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