Tax rates for Assessment Year 2020-21 after Taxation Laws (Amendment) Ordinance, 2019

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Tax rates for Assessment Year 2020-21 after Taxation Laws (Amendment) Ordinance, 2019

 

After the Taxation Laws (Amendment) Ordinance, 2019, the revised tax rates for the Assessment Year 2020-21 shall be as follows:

IN CASE OF INDIVIDUAL, HUF, AOP, BOI OR AJP

Individuals being Super Senior Citizens (Age 80 years or more at any time during the financial year)

Slabs Tax Rates
Up to Rs. 5,00,000
Rs. 5,00,001 to Rs. 10,00,000 20%
More than Rs. 10,00,000 30%

Individuals being Senior Citizens (Age 60 years or more but less than 80 years at any time during the financial year)

Slabs Tax Rates
Up to Rs. 3,00,000
Rs. 3,00,001 to Rs. 5,00,000 5%
Rs. 5,00,001 to Rs. 10,00,000 20%
More than Rs. 10,00,000 30%

Others Individuals, HUFs, AOP, BOI OR AJP

Slabs Tax Rates
Up to Rs. 2,50,000
Rs. 2,50,001 to Rs. 5,00,000 5%
Rs. 5,00,001 to Rs. 10,00,000 20%
More than Rs. 10,00,000 30%

Rebate under Section 87A

For the Assessment Year 2020-21, in case of a resident individual, rebate up to Rs. 12,500 is allowed from the amount of tax if his total income does not exceed Rs. 500,000. Where his total income includes long-term capital gains arising from transfer of equity shares, units of equity oriented mutual fund or units of business trust as covered under Section 112A, such rebate shall not allowed from tax payable on such capital gains.

Surcharge

For the Assessment Year 2020-21, the rate of surcharge shall be as under:

Nature of Income Range of Total Income
Up to Rs. 50 lakh More than Rs. 50 lakh but up to Rs. 1 crore More than Rs. 1 crore but up to Rs. 2 crore More than Rs. 2 crore but up to Rs. 5 crore More than Rs. 5 crore
Short-term capital gain covered under Section 111A Nil 10% 15% 15% 15%
Long-term capital gain covered under Section 112A Nil 10% 15% 15% 15%
Unexplained income chargeable to tax under Section 115BBE 25% 25% 25% 25% 25%
Any other income Nil 10% 15% 25% 37%

Health and Education Cess

The health and education cess is levied at the rate of 4% on the amount of income tax plus surcharge

IN CASE OF FIRM OR LLP

Tax Rates

A firm (including LLP) is liable to pay tax at the flat rate of 30% of taxable income.

Surcharge

If total income of a firm or LLP exceeds Rs. 1 crore, the surcharge is levied at the rate of 12% on the amount of tax payable on total income.

Health and Education Cess

The health and education cess is levied at the rate of 4% on the amount of income tax plus surcharge

IN CASE OF DOMESTIC COMPANY

Tax Rates

The tax rates for the domestic company for the Assessment Year 2020-21 shall be as follows:

Section Conditions In any other case
Section 115BA   1. The co. is set up and registered on or after 01.03.2016

2. It is engaged in manufacture or production of any article or thing

3. It does not claim specified exemption, incentive or deduction

25%
Section 115BAB   1. The co. is set up and registered on or after 01.10.2019

2. It is engaged in manufacture or production of any article or thing

3. It commences manufacturing on or after 01-10-2019 but on or before 31-03-2023

4. It does not claim specified exemption, incentive or deduction

15%
Section 115BAA If co. does not claim specified exemption, incentive or deduction 22%
First Schedule to Finance Act If total turnover or gross receipts during the financial year 2017-18 does not exceed Rs. 400 crore 25%
First Schedule to Finance Act Any other domestic company 30%

Surcharge

Company Range of Total Income
Rs. 1 crore or less Above Rs. 1 crore but up to Rs. 10 crore Above Rs. 10 crore
Domestic Company opting for section 115BA Nil 7% 12%
Domestic Company opting for section 115BAA* 10% 10% 10%
Domestic Company opting for section 115BAB* 10% 10% 10%
Any other company Nil 7% 12%

* Surcharge shall be levied at a flat rate of 10% only on income offered to tax under section 115BAA or Section 115BAB. Surcharge on all other incomes, which are chargeable to tax at special rate, shall be levied as per the existing provisions, i.e., at the rate of 7% or 12%, as the case may be.

Health and Education Cess

The health and education cess is levied at the rate of 4% on the amount of income tax plus surcharge

IN CASE OF FOREIGN COMPANY

Tax Rates

A foreign company is liable to pay tax at the rate of 40% of taxable income.

Surcharge

The rate of surcharge in case of a foreign company shall be 2% and 5% if its total income exceeds Rs. 1 crores and 10 crores, respectively.

Health and Education Cess

The health and education cess is levied at the rate of 4% on the amount of income tax plus surcharge

IN CASE OF LOCAL AUTHORITY

Tax Rate

A local authority is liable to pay tax at the rate of 30% of taxable income.

Surcharge

If total income of local authority exceeds Rs. 1 crore, the surcharge is levied at the rate of 12% on the amount of tax payable on total income.

Health and Education Cess

The health and education cess is levied at the rate of 4% on the amount of income tax plus surcharge

IN CASE OF CO-OP. SOCIETY OR CO-OP. BANK

Tax rates

Income range Tax rates
Up to Rs. 10,000 10%
Rs. 10,000 to Rs. 20,000 20%
Above Rs. 20,000 30%

Surcharge

If total income of co-op. society exceeds Rs. 1 crore, the surcharge is levied at the rate of 12% on the amount of tax payable on total income.

Health and Education Cess

The health and education cess is levied at the rate of 4% on the amount of income tax plus surcharge

MAT

Nature of assessee Rate
Domestic Company located in IFSC 9%
Other Companies 15%

However, the provisions of MAT shall not be applicable in case of following:

  1. Foreign companies which do not have permanent establishment (PE) in India or who are opting for presumptive taxation scheme of Section 44B, Section 44BB, Section 44BBA or Section 44BBB;

  2. Income accruing or arising to a company from life insurance business as referred to in Section 115B;

  3. A domestic company which has opted for the tax regime of Section 115BAA or Section 115BAB

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