1. In case of an Individual (resident or non-resident) or HUF or Association of Person or Body of Individual or any other artificial juri...
1. In case
of an Individual (resident or non-resident) or HUF or Association of Person or
Body of Individual or any other artificial juridical person
Taxable Income
|
Tax Rate
|
Up to Rs. 2,50,000
|
Nil
|
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%
|
Surcharge: 10% of income tax,
where total income exceeds INR 50 lakh up to INR 1 crore. 15% of income tax,
where the total income exceeds INR 1 crore up to INR 2 crore. 25% of income
tax, where total income exceeds Rs 2 crore upto Rs 5 crore and 37% of income
tax, where total income exceeds Rs 5 crore. (Refer Note 1)
Health and Education
Cess: 4% of Income Tax plus Surcharge. (Refer Note 2)
Please
note that this exemption limit will be applicable for non-resident individual
also Irrespective of their age.
2. In case of a resident senior citizen (who is
60 years or more at any time during the previous year but less than 80 years on
the last day of the previous year)
Taxable Income
|
Tax Rate
|
Up to Rs. 3,00,000
|
Nil
|
Rs. 3,00,000 to Rs 5,00,000
|
5%
|
Rs. 5,00,000 to Rs. 10,00,000
|
20%
|
Above Rs. 10,00,000
|
30%
|
Surcharge: 10% of income tax,
where total income exceeds INR 50 lakh up to INR 1 crore. 15% of income tax,
where the total income exceeds INR 1 crore up to INR 2 crore. 25% of income
tax, where total income exceeds Rs 2 crore upto Rs 5 crore and 37% of income
tax, where total income exceeds Rs 5 crore. (Refer Note 1)
Health and Education
Cess: 4%
of Income Tax plus Surcharge. (Refer Note 2)
3. In case of a resident super senior citizen (who is 80
years or more at any time during the previous year)
Taxable Income
|
Tax Rate
|
Up to Rs. 5,00,000
|
Nil
|
Rs. 5,00,000 to Rs. 10,00,000
|
20%
|
Above Rs. 10,00,000
|
30%
|
Surcharge: 10% of income tax,
where total income exceeds INR 50 lakh up to INR 1 crore. 15% of income tax,
where the total income exceeds INR 1 crore up to INR 2 crore. 25% of income
tax, where total income exceeds Rs 2 crore upto Rs 5 crore and 37% of income
tax, where total income exceeds Rs 5 crore. (Refer Note 1)
Health and Education
Cess: 4% of Income Tax plus Surcharge (Refer Note 2)
Note 1: Marginal Relief
The
surcharge shall be subject to marginal relief:
- Where income exceeds Rs. 50 lakhs, the total amount
payable as income-tax and surcharge shall not exceed total amount payable
as income-tax on total income of Rs. 50 lakhs by more than the amount of
income that exceeds Rs. 50 lakhs.
- Where income exceeds Rs. 1 crore, the total amount
payable as income-tax and surcharge shall not exceed total amount payable
as income-tax on total income of Rs. 1 crore by more than the amount of
income that exceeds Rs. 1 crore
- Where income exceeds Rs. 2 crore, the total amount
payable as income-tax and surcharge shall not exceed total amount payable
as income-tax on total income of Rs. 2 crore by more than the amount of
income that exceeds Rs. 2 crore
- Where income exceeds Rs. 5 crore rupees, the total
amount payable as income-tax and surcharge shall not exceed total amount
payable as income-tax on total income of Rs. 5 crore rupees by more than
the amount of income that exceeds Rs. 5 crore rupees
Note 2: Rebate U/s. 87A
Assessee
being a resident individual in India, whose total income after claiming
deduction under chapter VI A does not exceed Rs. 5,00,000 shall be entitled to
the rebate under section 87A of an amount equal to hundred per cent of such
income-tax or an amount of Rs. 12,500, whichever is less. further, please note
that this rebate is applied to the total tax before adding the Education Cess
(4%).
4.
Income Tax Rate for AY 2020-21 for Partnership Firm / LLP
Income
Tax Rate: 30%
Surcharge: 12% of taxable
income if net income exceed 1 crore. 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: 4%
of Income Tax Plus Surcharge
5. Income Tax Rate for AY 2020-21 for Local Authority
Income
Tax Rate: 30%
Surcharge: 12% of taxable
income if net income exceed 1 crore. 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: 4%
of Income Tax Plus Surcharge
6. Income Tax Rate for AY 2020-21 for Co-operative Society
Taxable income
|
Tax Rate
|
Up to Rs. 10,000
|
10%
|
Rs. 10,000 to Rs. 20,000
|
20%
|
Above Rs. 20,000
|
30%
|
Surcharge: 12% of taxable
income if net income exceed 1 crore. 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: 4%
of Income Tax Plus Surcharge
7. Income Tax Rate for AY 2020-21 for Domestic Company
Particulars
|
Rates
|
Where its total turnover or gross receipt
during the previous year 2017-18 does not exceed Rs. 400 crore
|
25%
|
Where it opted for Section 115BA
|
25%
|
Where it opted for Section 115BAA (Refer
Note 1)
|
22%
|
Where it opted for Section 115BAB
(Refer
Note 2)
|
15%
|
Any other domestic company
|
30%
|
Surcharge: 7% of taxable
income if net income exceed 1 crore but does not exceed 10 crore and 12% of
taxable income if net income exceed 10 crore.
The
surcharge shall be subject to marginal relief, which shall be as under:
i) Where income exceeds Rs. 1 crore but not exceeding Rs. 10 crore, the total
amount payable as income-tax and surcharge shall not exceed total amount
payable as income-tax on total income of Rs. 1 crore by more than the amount of
income that exceeds Rs. 1 crore.
ii) Where income exceeds Rs. 10 crore, the total amount
payable as income-tax and surcharge shall not exceed total amount payable as
income-tax on total income of Rs. 10 crore by more than the amount of income
that exceeds Rs. 10 crore
Health
and Education Cess: 4% of Income Tax Plus Surcharge
Note:
1. Detail explanation of Section 115BAA:
A. Following conditions need to be satisfied for getting
benefit of lower tax rate introduced by Section 115BAA:
a. without claiming exemption/ deduction
·
u/s 10AA [SEZ units],
·
u/s 32(1)(iia) [additional depreciation
qua new plant and machinery @ 20%/ 30%],
·
u/s 32AD [15% on new assets in
undertaking set up in specified backward areas in Andhra Pradesh, Bihar,
Telangana, and West Bengal]
·
u/s 33AB [specified percentage of
amounts deposited with Tea/ Coffee/ Rubber Board]
·
u/s 33ABA [specified percentage of amounts
deposited in Site Restoration Account]
·
u/s 35(1)(ii)/(iia), 35(2AA) or 35(2AB)
[specified deduction for scientific research]
·
u/s 35AD [expenditure on specified
business]
·
u/s 35CCC [expenditure on agricultural
extension project]
·
u/s 35CCD [expenditure on skill
development project]
·
under Part C of Chapter VIA except
section 80JJAA or 80LA or 80M of the Act (such as 80IA/IB/IC/ID/IE etc.)
b. Without set-off of any brought forward losses to the
extent such loss relates to deductions mentioned above. Such losses would also
not be allowed to be carried forward to subsequent years.
c. After claiming depreciation other than additional
depreciation u/s 32(1)(iia).
Benefit of lower rate under the aforesaid section can be
exercised by the company from any year commencing from AY 2020-21 or onwards.
Such option is to be exercised in prescribed manner, before due date of return
u/s 139(1) for the year in which option is exercised. Option once exercised
would be binding for subsequent years and cannot be withdrawn.
B. Companies availing benefit of lower tax rate under new
provisions of sections 115BAA have been Exempted from MAT on book profit under
section 115JB
2. Detail explanation of Section 115BAB:
A.
Following conditions need to be satisfied for getting benefit of lower tax rate
introduced by Section 115BAB:
a) If such company is set-up and registered, on or after 1st
October,2019 and commences manufacturing activity upto 31st March, 2023.
b) The company is not engaged in any business other than the
business of manufacture or production of any article or thing and research in
relation to, or distribution of, such article or thing manufactured or produced
by it. The following businesses would not be considered as a business of
manufacture or production of any article or thing:
·
o Development
of computer software in any form or in any media;
o Mining;
o Conversion
of marble blocks or similar items into slabs;
o Bottling
of gas into cylinder;
o Printing
of books or production of cinematograph film; or
o Any
other business as may be notified by the Central Government on this behalf.
The business of generation of electricity shall be regarded
as business of manufacture or production of any article or thing for this
purpose.
c) without claiming exemption/ deduction
·
o u/s
10AA [SEZ units],
o u/s
32(1)(iia) [additional depreciation qua new plant and machinery @ 20%/ 30%],
o u/s
32AD [15% on new assets in undertaking set up in specified backward areas in
Andhra Pradesh, Bihar, Telangana, and West Bengal]
o u/s
33AB [specified percentage of amounts deposited with Tea/ Coffee/ Rubber Board]
o u/s
33ABA [specified percentage of amounts deposited in Site Restoration Account]
o u/s
35(1)(ii)/(iia), 35(2AA) or 35(2AB) [specified deduction for scientific
research]
o u/s
35AD [expenditure on specified business]
o u/s
35CCC [expenditure on agricultural extension project]
o u/s
35CCD [expenditure on skill development project]
o under
Part C of Chapter VIA except section 80JJAA or 80M of the Act (such as
80IA/IB/IC/ID/IE etc.)
d) Without set-off of any brought forward losses to the
extent such loss relates to deductions mentioned above. Such losses would also
not be allowed to be carried forward to subsequent years.
e) After claiming depreciation other than additional
depreciation u/s 32(1)(iia).
f) Additionally, following conditions must be fulfilled by
the company to avail benefit of lower tax rate:
·
o company
must not be formed by splitting up, or the reconstruction of a business already
in existence
o company
must not use machinery or plant previously used for any purpose. Used plant and
machinery to the extent of 20% of total value of plant and machinery is
permissible
o company
must not use building previously used as a hotel or a convention Centre.
B. Companies
availing benefit of lower tax rate under new provisions of sections 115BAB have
been Exempted from MAT on book profit under section 115JB
8. Income Tax Rate for AY 2020-21 for Foreign
Company
Nature of Income
|
Tax Rate
|
Royalty received from Government or an
Indian concern or fees for rendering technical services where such agreement
has, in either case, been approved by the Central Government
|
50%
|
Any other income
|
40%
|
Surcharge: 2%
of taxable income if net income exceed 1 crore but does not exceed 10 crore and
5% of taxable income if net income exceed 10 crore. However, the surcharge
shall be subject to marginal relief, which shall be as under:
(i) Where income exceeds one crore rupees but not exceeding
ten 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.
(ii) Where income exceeds ten crore rupees, the total amount
payable as income-tax and surcharge shall not exceed total amount payable as
income-tax on total income of ten crore rupees by more than the amount of
income that exceeds ten crore rupees.
Health and Education Cess: 4%
of Income Tax plus Surcharge
COMMENTS