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Special Tax Rates For The Income: Income Tax Rates


1. Income Tax Rates on Capital gains:

Section

Particulars

Tax Rate

112

Long Term Capital Gains

20%

112(1)(c)(iii)

Long term capital gains arising to a non-resident person from transfer of unlisted securities or shares  of a company in which the public are not substantially interested without giving effect to benefit of indexation

10%

Proviso to section 112

Long-term capital gains arising from transfer of listed securities (other than a unit), zero coupon bonds without giving effect to benefit of indexation.

10%

111A

Short term capital gains arising from transfer of equity shares or units of an equity oriented fund, or a unit of business trust if transaction of sale is chargeable to securities transaction tax (STT) or undertaken in foreign currency on a recognised stock exchange located in an International Financial Services Centre (IFSC).

15%

115ACA

Long-term capital gain from GDRSs issued by a listed Indian company, engaged in specified knowledge based industry or service, to its employees, being an individual resident in India, in accordance with notified ESOP Scheme

Provided that such GDRs are purchased in foreign currency and capital gain is computed without taking benefits of first and second proviso to Section 48 

10%

115AD(1)(b)

Short term capital gain (other than as referred to in Section 111A) earned by specified FIIs

30%

115AD(1)(b)

Long term capital gains earned by specified FIIs

10%

115E(b)

Long-term capital gain arising from transfer of specified foreign exchange assets in the hands of non-resident Indian

10%

2. Interest Income:

115A(1)(a)(ii)

Interest received by a non-resident person from Government or an Indian concern on monies borrowed or debt incurred by Government or the Indian concern in foreign currency [not being interest of the nature referred to in section 10(47) or Section 194LC]

20%

115A(1)(a)(iia)

Interest received by a non-resident person from notified Infrastructure Debt Fund as referred to in section 10(47)

5%

115A(1)(a)(iiaa)

Interest payable to a non-resident person by an Indian Company or business trust on monies borrowed in foreign currency from a source outside India, subject to certain conditions.

5%

115A(1)(a)(iiab)

Interest on Rupee Denominated Bonds of an Indian Company or Government Securities payable during 01.06.2013 -30.06.2017 to FIIs / QFIs as referred to in Section 194LD.

5%

115A(1)(a)(iiac)

Interest of the nature referred to Section 10(23FC), payable by business trust to its unit holders, being a non-resident person, as referred to in Section 194LBA.

5%

115AD(a)

Interest referred to in section 194LD earned by specified FIIs

5%


3. Dividend Income:

115A(1)(a)(i)

Dividends (other than as referred to in Section 115-O) received by a non-resident person

20%

115ACA

Income by way of dividend [other than dividends as referred to in section 115-O] on GDRSs issued by a listed Indian company, engaged in specified knowledge based industry or service, to its employees, being an individual resident in India, in accordance with notified ESOP Scheme or long-term capital gain arising from transfer of such GDRs.

Provided that such GDRs are purchased in foreign currency and capital gain is computed without taking benefits of first and second proviso to Section 48 

10%

115BBD

Income of an Indian company by way of dividends declared, distributed or paid by a foreign company. The benefits shall be allowed only if Indian company holds 26% or more in nominal value of equity share capital of a foreign company

15%

115BBDA

Dividend received from domestic companies in excess of Rs. 10 Lakh [excluding deemed dividend under section 2(22)(e)]

10%

4.  Specified income of Non-resident or FII:

115A(1)(a)(iii)

Income received by a non-resident person in respect of units of a Mutual Funds [specified under section 10(23D)] or of UTI purchased in foreign currency

20%

115A(1)(b)

Income of a non-resident by way of Royalty or FTS (other than income referred to in Section 44DA) received from India concern or Government in pursuance of an agreement made after 31-3-1976  subject to conditions

10%

115AB

Income of an overseas financial organization

-          In respect of units purchased in foreign currency; or

-          By way of long-term capital gains arising from transfer of units purchased in foreign currency.

10%

115AC

Income [other than dividends as referred to in section 115-O] of a non-resident person from bonds or GDRs of a public sector company sold by the Government and purchased in foreign currency or long-term capital gains arising from transfer of such bonds or GDRs

10%

115AD(1)(a)

Other income earned by specified FIIs [other than dividends as referred to in Section 115-O]

20%

115BBA(1)(a)

Income of a non-resident foreign citizen sportsman

-    from participation in any game in India or

-    advertisement or

-    from contribution of articles relating to any game (other than a game the winning from which are taxable under section 115BB) or sport played in India

20%

115BBA(1)(b)

Any amount guaranteed to be paid or payable to a non-resident sport association in relation to any game or sport played in India

20%

115BBA(1)(c)

Income of non-resident foreign citizen, being an entertainer, for performance in India

20%

115E

Income from investment and long term capital gains other than from specified foreign exchanges assets

20%


5. Trust/Firm/AOP/BOI:

a. Special tax rates in case of certain trusts:

115TD

Accreted income of certain trusts and institutions

At max. Marginal rate

115UB(4)

Business income of Category I or Category II Alternative Investment Fund

  • Where such fund is a domestic company or firm

·         Where such fund is a Foreign Co.

·         If it is any other person

 

 

30

40

At max. Marginal rate

 

161(1A)

Profits and gains of a business in the case of a trust

30

164

Income of trust whose beneficiary’s shares is indeterminate. i.e. Private Discretionary Trust

30%

 

164A

Income of an oral trust

30%

 


b. Tax rate in case of firm:


167A

Income of a firm

30%


c. Tax rate in case of AOP / BOI:

167 B

Income of an association of persons or body of individuals if shares of members are unknown

30%

167B(2)

Income of an association of persons or body of individuals if total income of any member (excluding share from the association or body) exceeds the maximum amount not chargeable to tax

30%



Click here to know updated Income tax slab rates for FY 2019-20 & 2020-21

6. MAT/AMT:

a. Minimum Alternate Tax (MAT):


115JB

Minimum Alternate Tax (MAT)

-          In case of a company located in an International Financial Services Centre and derives its income solely in convertible foreign exchange.

-          In case of any other company

 

9%

 

 

18.5%

 

b. Alternate Minimum Tax (AMT):


115JC

Alternate minimum tax (AMT) in the case of any non-corporate taxpayer.

 

However, an individual or a Hindu undivided family or an association of persons or a body of individuals, whether incorporated or not, or an artificial juridical shall not be liable to pay AMT, if the adjusted total income does not exceed Rs. 20, 000, 00.

18.5%


7. Misc.:

a. Income from gambling activities:


115BB

Income by way of winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting of any form or nature whatsoever.

30%

                                  

b. Income from unexplained sources:


115BBE

Income referred to in sections 68, 69, 69A, 69B, 69C and 69D

60%

 

c. Anonymous Donation:


115BBC

Anonymous donation

30%

 

d. Income from life insurance business:


115B

Profit and gains of life insurance business

12.5%

 

e. Income from royalty or patent developed in India:


115BBF

Income of a resident assessee by way of royalty in respect of a patent developed and registered in India

10%

 

f. Income from transfer of carbon credits:


115BBG

Any income by way of transfer of carbon credits

10%

 

g. Special tax rate in case of certain domestic companies:


115BA

Income of certain domestic companies engaged in business of manufacture or production of any article or thing and research in relation to, or distribution of, such article or thing (Subject to certain conditions)

25%

 

Also Read: Income Tax Slab Rate for AY 2020-21

Disclaimer: This information is updated till 21 November 2017.

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