Income Tax Slab Rate for AY. 2020-21

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.

income tax slab and tax rate in india 2020-21

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
  • Applicable w.e.f FY 2019-20
  • Not eligible for any tax incentives/exemptions
  • Not required to pay MAT
  • The option has to be exercised one time on or before the due date of filing of tax return
  • The option once exercised can’t be withdrawn.
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

  • Can opt for 25.17% effective tax rate after the expiry of tax holiday/exemption period
  • MAT rate reduced from 18.5% to 15% (plus applicable surcharge and cess)
3. New Domestic Manufacturing Companies incorporated on or after 01-Oct-2019
  • Applicable w.e.f FY 2019-20
  • Has to commence
    manufacturing on or before 31.03.2023
  • Not eligible for any tax
    incentives/exemptions
  • Not required to pay MAT
  • An option has to be exercised on or before the due date of filing of first tax return
  • Option once exercised
    can’t be withdrawn
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%

IT Return filing for Business

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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