Every person whose Total Income exceeds the prescribed slab rate is liable to pay income tax. Taxes shall be charged at the rate as determined by the annual finance act for such a year.
In this article, we will discuss about...
Income Tax Slab rates for A.Y. 2020-21
Slab rates for Individuals, Hindu Undivided Family (HUF), Association of Persons (AOP), Body of Individuals (BOI), Artificial Judicial Persons is fixed as follows
Income Tax Slab | Tax Rate (< 60 years of age) |
Total Income less than Rs.2,50,000/- | Nil |
Total Income more than Rs.2,50,000/- and less than Rs.5,00,000/- | 5% on the total income exceeding Rs.2,50,000/- |
Total Income more than Rs.5,00,000/- and less than Rs.10,00,000/- | Rs.12,500/- plus 20% on the total income exceeding Rs.5,00,000/- |
Total Income more than Rs.10,00,000/- | Rs.1,12,500/- plus 30% on the total income exceeding Rs.10,00,000/- |
For the Senior citizens ( > 60 years of age but less than 80 years age)
Income Tax Slab | Tax Rate (< 60 years of age) |
Total Income less than Rs.3,00,000/- | Nil |
Total Income more than Rs.3,00,000/- and less than Rs.5,00,000/- | 5% on the total income exceeding Rs.3,00,000/- |
Total Income more than Rs.5,00,000/- and less than Rs.10,00,000/- | Rs.10,000/- plus 20% on the total income exceeding Rs.5,00,000/- |
Total Income more than Rs.10,00,000/- | Rs.1,10,000/- plus 30% on the total income exceeding Rs.10,00,000/- |
Note: An additional 4% Health & education cess will be applicable to the tax amount calculated as above.
In addition to the above taxes, an additional tax is levied called surcharge on the Income Tax payable at the rate as follows
- Surcharge at the rate of 10% shall be levied on the income tax payable, in the case where the total income exceeds Rs.50 Lakh but not exceeding Rs.1 Crore.
- Surcharge at the rate of 15% shall be levied, in the case where the total income exceeds Rs.1 Crore.
For the Senior citizens ( > 80 years of age)
Income Tax Slab | Tax Rate (< 60 years of age) |
Total Income less than Rs.5,00,000/- | Nil |
Total Income more than Rs.5,00,000/- and less than Rs.10,00,000/- | 20% on the total income exceeding Rs.5,00,000/- |
Total Income more than Rs.10,00,000/- | Rs.1,00,000/- plus 30% on the total income exceeding Rs.10,00,000/- |
Note: An additional 4% Health & education cess will be applicable to the tax amount calculated as above.
Slab rates for Partnership Firms and Limited Liability Partnership (LLP)
Tax Rate shall be charged at the rate of 30% on the Total Income.
Surcharge: In addition to the above tax, an additional tax is levied called surcharge at the rate of 12% on the Income Tax payable for the cases where the total income exceeds Rs.1 Crore.
Slab rates for Local Authority
Tax Rate shall be charged at the rate of 30% on the Total Income.
Note: An additional 4% Health & education cess will be applicable to the tax amount calculated as above.
Slab rates for Co-operative Society
Income Tax Slab | Tax Rate |
Total Income less than Rs.10,000/- | 10% on Total Income |
Total Income more than Rs.10,000/- but less than Rs.20,000/- | Rs.1,000/- plus 20% on the total income exceeding Rs.10,000/- |
Total Income more than Rs.20,000/- | Rs.3,000/- plus 30% on the total income exceeding Rs.20,000/- |
Note: An additional 4% Health & education cess will be applicable to the tax amount calculated as above.
Surcharge: In addition to the above tax, an additional tax is levied called surcharge at the rate of 12% on the Income Tax payable for the cases where the total income exceeds Rs.1 Crore.
Slab rates for Domestic Company
Domestic Company | Assessment Year 2019-20 |
Where its total turnover or gross receipt during the previous year 2016-17 does not exceed Rs. 250 crore | 25% |
Where its total turnover or gross receipt during the previous year 2017-18 does not exceed Rs. 400 crore | NA |
Where it opted for Section 115BA | 25% |
Where it opted for Section 115BAA | NA |
Where it opted for Section 115BAB | NA |
Any other domestic company | 30% |
The option has been given to pay concessional effective tax @25.17% to existing domestic companies & @17.16% to new domestic manufacturing companies without availing any tax incentives/exemptions
ETR(%) :-effective tax rate
SI No | Nature of domestic company | Current ETR(%) | ETR if option
exercised (%) |
Conditions / benefits if
option exercised |
1.
|
Existing Domestic Companies |
|
||
a) Turnover > Rs.400 Crore during the FY 2017-18 | ||||
Income ≤ Rs.1 crore | 31.20% | 25.17%# | ||
Income > Rs.1 crore ≤ Rs.10 crore | 33.38% | 25.17% | ||
Income > Rs.10 crore | 34.94% | 25.17% | ||
b) Other domestic companies ( in existence on or before 30-Sep-2019) | ||||
Income ≤ Rs.1 crore | 26% | 25.17% | ||
Income > Rs.1 crore ≤ Rs.10 crore | 27.82% | 25.17% | ||
Income > Rs.10 crore | 29.12% | 25.17% | ||
2. | Existing Domestic Companies – Continues to avail tax
incentives/exemptions |
|
||
3. | New Domestic Manufacturing Companies incorporated on or after 01-Oct-2019 |
|
||
Income ≤ Rs.1 crore | 26% | 17.16%## | ||
Income > Rs.1 crore ≤ Rs.10 crore | 27.82% | 17.16% | ||
Income > Rs.10 crore | 29.12% | 17.16% |
- Corporate tax rate @22%, Surcharge @10% & Health & Education Cess@4%
- Corporate tax rate @15%, Surcharge @10% & Health & Education Cess@4%
Slab rates for Companies other than Domestic Company (Foreign Company)
Tax Rate shall be charged at the rate of 40% on the Total Income.
In addition, cess and surcharge is levied as follows: Cess: 4% of corporate tax
Further, In addition to the above taxes, the surcharge shall be levied on the Income Tax payable at the rate as follows
- Surcharge at the rate of 2% shall be levied on the income tax payable, in the case where the total income exceeds Rs.1 Crore but not exceeds Rs.10 Crores.
- Surcharge at the rate of 5% shall be levied, in the case where the total income exceeds Rs.10 Crores.
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