Rates of Income Tax for Assessment Year 2020-21

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1. Rates of Income Tax in case of Individual Assessee for Assessment Year 2020-21

A- Individual Resident in India age below  60 years

Upto ₹2,50,000Nil 
₹2,50,010 to  ₹5,00,000 5%
₹5,00,010 to  ₹10,00,000 20% 
Above ₹10,00,00030%
Rates of Income Tax for Assessment Year 2020-21
Rates of Income Tax for Assessment Year 2020-21

B- Individual Resident in India age  60 years or more but less than  80 years

Up to ₹3,00,000Nil
₹3,00,010 to  ₹5,00,0005%
₹5,00,010 to  ₹10,00,000 20%
Above ₹10,00,00030%

C- Individual Resident in India age  80 years  or more

Upto ₹5,00,000Nil
₹5,00,010 to  ₹10,00,000 20%
Above ₹10,00,00030%

The exemption limit in case of an individual (whether male or female) who is of the age of 60 years and above  but who is non-resident in India is ₹2,50,000 instead of ₹3,00,000 or ₹5,00,000 as the case may be. 

Surcharge  For Assessment Year 2020-21

The amount of income-tax shall be increased by a surcharge for the purposes of the Union  calculated at the following rates— 

(a) where the total income exceeds ₹50,00,000 but does not  exceed ₹1 crore10% of such income-tax 
(b) where the total income exceeds ₹1 crore but does not exceed  ₹2 crore15% of such income-tax
(c) where the total income exceeds ₹2 crore but does not exceed  ₹5 crore25% of such income-tax
(d) where the total income exceed ₹5 crore37% of such income-tax

Marginal relief:

Marginal relief has also been provided in all cases where surcharge is to be  levied.

In the case of persons mentioned in (A) above, where such income exceeds,— 

(a) ₹50,00,000 but does not exceed ₹1 crore, the total amount payable on such income and  surcharge thereon shall not exceed the total amount payable on a total income of ₹50,00,000  by more than the amount of income that exceeds ₹50,00,000; 

(b) ₹1 crore but does not exceed ₹2 crore, the total amount payable on such income and  surcharge thereon shall not exceed the total amount payable on a total income of ₹1 crore by  more than the amount of income that exceeds ₹1 crore; 

(c) ₹2 crore but does not exceed ₹5 crore, the total amount payable on such income and  surcharge thereon shall not exceed the total amount payable on a total income of ₹2 crore by  more than the amount of income that exceeds ₹2 crore;

(d) ₹5 crore, the total amount payable on such income and surcharge thereon shall not exceed the  total amount payable on a total income of ₹5 crore by more than the amount of income that  exceeds ₹5 crore. 

Health and Education Cess: For assessment year 2020-21:

‘Health and Education Cess (H&EC)  on Income Tax’ @ 4% on income tax (inclusive of surcharge, wherever applicable) shall be levied. 

2. Rates of Income Tax in case of Firm including LLP (Limited Liability Partnership) for Assessment Year 2020-21

Normal Rate of Tax30%

Surcharge:

The amount of income-tax shall be increased by a surcharge at the rate of 12% of  such income-tax in case of a firm having a total income exceeding ₹1 crore. 

Marginal Relief:

The total amount payable as income-tax and surcharge on total income  exceeding ₹1 crore shall not exceed the total amount payable as income-tax on a total income of ₹1  crore by more than the amount of income that exceeds ₹1 crore. 

Health and Education Cess: For assessment year 2020-21:

‘Health and Education Cess (H&EC)  on Income Tax’ @ 4% on income tax (inclusive of surcharge, wherever applicable) shall be levied. 

3. Rates of Income Tax in case of a Domestic Company for Assessment Year 2020-21

(i) Where the total turnover or gross receipts in the previous year 2017-  18 does not exceed ₹ 400 crore25%
(ii) Certain domestic companies referred to in section 115BA25%
(iii) Domestic company opting to pay tax under section 115BAA22%
(iv) Domestic company which has been set-up and registered on or after  1.10.2019, and the commenced manufacturing on or before the  31.3.2023 and opting to pay tax under section 115BAB15%
(v) In all other cases30%

4. Rates of Income Tax in case of a Foreign Company for Assessment Year 2020-21

Normal Rate of Tax40%

Surcharge in case of Domestic Company other than covered u/s 115BAA or 115BAB:

Where  the total income of a domestic company exceeds ₹1 crore but does not ₹10 crore a surcharge of 7% of  tax shall be levied. 

Where the total income of the domestic company exceeds ₹10 crore a surcharge at the rate of 12%  of tax shall be levied. 

Surcharge in case of a Domestic Company opting to pay tax under  Section 115BAA or 115BAB

10% of the tax irrespective of  the amount of taxable income 

Marginal relief in case of a Domestic Company except which has opted to pay Tax as per  Section 115BAA or 115BAB:

The total amount payable as income-tax and surcharge on total income  exceeding ₹1 crore but not exceeding ₹10 crore, shall not exceed the total amount payable as income tax on a total income of ₹1 crore, by more than the amount of income that exceeds ₹1 crore. 

Further, the total amount payable as income-tax and surcharge on total income exceeding ₹10  crore, shall not exceed the total amount payable as income-tax and surcharge on a total income of ₹10  crore, by more than the amount of income that exceeds ₹10 crore. 

Surcharge in case of a Foreign Company:

Where the total income of a foreign company exceeds  ₹1 crore but does not ₹10 crore a surcharge of 2% of tax shall be levied. 

Where the total income of the domestic company exceeds ₹10 crore a surcharge at the rate of 5%  of tax shall be levied. 

Health and Education Cess: For Assessment Year 2020-21:

‘Health and Education Cess (H&EC)  on Income Tax’ @ 4% on income tax (inclusive of surcharge, wherever applicable) shall be levied.

5. Rebate U/s 87A of maximum ₹12,500 for Resident Individuals having total income up to ₹5,00,000 

Rebate U/s 87A from the tax payable by an assessee shall be allowed for A.Y. 2020-21, if the following  condition and satisfied: 

(1) The assessee is an Individual 

(2) He is Resident in India, 

(3) His total income does not exceed ₹5,00,000. 

Quantum of Rebate:

The rebate shall be equal to: 

(1) the amount of income-tax payable on the total income for any assessment year or 

(2) ₹12,500, 

whichever is less.

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