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Income Tax Rates – AY 2020-21 (FY 2019-20)

Income Tax is a direct tax charged on the income of an assessee. Different classes of taxpayers are taxed differently under the Indian Income Tax laws. In the case of individuals, the taxable income of the assessee is grouped into income blocks, commonly known as slabs. The tax rates are decided based on the income slab of the taxpayer.

In India, taxpayers are grouped based on their legal status:

  • Individuals
  • Hindu Undivided Family (HUF), Association of Persons(AOP) and Body of Individuals (BOI)
  • Partnership Firms/LLP
  • Local Authorities
  • Companies

In this article, we will have compiled the Income Tax Rates applicable to different types of assessees:

Individuals

1. Individuals (below 60 years of age)

Net Income Range Rate of Income Tax Health and Education Cess
Up to INR 2,50,000 Nil  Nil
INR 2,50,001 to INR 5,00,000 5% 4% of income tax
INR 5,00,001 to INR 10,00,000 20% 4% of income tax
INR 10,00,001 and above 30% 4% of income tax

2. Senior Citizens (60 to 80 years)

Net Income Range Rate of Income Tax Health and Education Cess
Up to INR 3,00,000 Nil  Nil
INR 3,00,001 to INR 5,00,000 5% 4% of income tax
INR 5,00,001 to INR 10,00,000 20% 4% of income tax
INR 10,00,001 and above 30% 4% of income tax

3. Super Senior Citizens (above 80 years of age)

Net Income Range Rate of Income Tax Health and Education Cess
Up to INR 5,00,000 Nil  Nil
INR 5,00,001 to INR 10,00,001 20% 4% of income tax
INR 10,00,001 and above 30% 4% of income tax

Points to remember:

  • The following surcharge is applicable on the income tax calculated:
Income details Surcharge rate on calculated Income Tax
Net income exceeds INR 50 lakhs but does not exceed INR 1 crore 10%
Net income exceeds INR 1 crore but does not exceed INR 2 crores 15%
Net income exceeds INR 2 crores but does not exceed INR 5 crores 25%
Net income exceeds INR 5 crores 37%
  • A tax rebate under section 87A is allowed to individual taxpayers. The maximum amount of rebate allowed is INR 12,500. This rebate is available only if the total taxable income does not exceed INR 5,00,000.

Hindu Undivided Family including Associations of Persons, Bodies of Individuals, and other Artificial Judicial Persons

Net Income Range Rate of Income Tax Health and Education Cess
Up to INR 2,50,000 Nil  Nil
INR 2,50,001 to INR 5,00,000 5% 4% of income tax
INR 5,00,001 to INR 10,00,001 20% 4% of income tax
INR 10,00,001 and above 30% 4% of income tax

The following surcharge is applicable on the income tax calculated:

Income details Surcharge rate on calculated Income Tax
Net income exceeds INR 50 lakhs but does not exceed INR 1 crore 10%
Net income exceeds INR 1 crore but does not exceed INR 2 crores 15%
Net income exceeds INR 2 crores but does not exceed INR 5 crores 25%
Net income exceeds INR 5 crores 37%

Domestic Companies

Total Turnover Rate of Income Tax Cess
If the gross turnover of the company does not exceed INR 400 Crores in  the previous year 2017-18 25% 4% of corporate tax
Any other domestic company 30% 4% of corporate tax
If the Company has opted for Section 115BAA 22% 4% of corporate tax
If the Company has opted for Section 115BAB 15% 4% of corporate tax

In addition to the above, a surcharge will be applicable on the calculated tax as follows:

Income details Surcharge rate on calculated Income Tax
Net income exceeds INR 1 crore but does not exceed INR 10 crores 7%
Net income exceeds INR 10 crores 12%

Foreign Companies

Nature of Income Rate of Income Tax
●     Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or

●     Fees for rendering technical services in pursuance of an agreement made after February 29, 1964, but before April 1, 1976, and

Where such agreement has, in either case, been approved by the Central Government

50%
Any other income 40%

In addition to the above, a surcharge will be applicable on the calculated tax as follows:

Income details Surcharge rate on calculated Income Tax
Net income exceeds INR 1 crore but does not exceed INR 10 crores 2%
Net income exceeds INR 10 crores 5%

Health and Education Cess is charged at a rate of 4%.

Partnership Firms and LLP

The income of a Partnership Firm/LLP is taxable at a flat rate of 30%. Health and Education Cess will be charged at the rate of 4%. A surcharge of 12% on the calculated income tax will be applicable when the taxable income exceeds INR 1 crore.

Local Authority

The income of a Local Authority is taxable at a flat rate of 30%. Health and Education Cess will be charged at the rate of 4%. A surcharge of 12% on the calculated income tax will be applicable when the taxable income exceeds INR 1 crore.

Co-operative Societies

Net Income Range Rate of Income Tax Health and Education Cess
Up to INR 10,000 10% 4% of income tax
INR 10,001 to INR 20,000 20% 4% of income tax
INR 20,001 and above 30% 4% of income tax

A surcharge of 12% is applicable when the total taxable income exceeds INR 1 crore.