Income Tax 01 Feb,2020
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Income-Tax rates applicable for Assessment year 2021-22
Editorial Team

1. Income Tax Slab Rate for AY 2021-22 for Individuals opting for old tax regime:

1.1. Individual (resident or non-resident), who is of the age of less than 60 years on the last day of the relevant previous year:

Net income range Income-Tax rate
Up to Rs. 2,50,000 Nil
Rs. 2,50,000- Rs. 5,00,000 5%
Rs. 5,00,000- Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

1.2. Resident senior citizen, i.e., every individual, being a resident in India, who is of the age of 60 years or more but less than 80 years at any time during the previous year:

Net income range Income-Tax rate
Up to Rs. 3,00,000 Nil
Rs. 3,00,000 - Rs. 5,00,000 5%
Rs. 5,00,000- Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

1.3. Resident super senior citizen, i.e., every individual, being a resident in India, who is of the age of 80 years or more at any time during the previous year:

Net income range Income-Tax rate
Up to Rs. 5,00,000 Nil
Rs. 5,00,000- Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

Plus: -

Surcharge: - 10% of income tax where total income exceeds Rs. 50,00,000.

15% of income tax where total income exceeds Rs. 1,00,00,000.

25% of income tax where total income exceeds Rs. 2,00,00,000.

37% of income tax where total income exceeds Rs. 5,00,00,000.

Health and Education cess: - 4% of income tax and surcharge.

Note: - A resident individual is entitled for rebate under section 87A if his total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of income-tax or Rs. 12,500, whichever is less.

2. Income Tax Rates For HUF/AOP/BOI/Any other Artificial Juridical Person under the old tax regime:

Net income range Income-Tax rate
Up to Rs. 2,50,000 Nil
Rs. 2,50,000- Rs. 5,00,000 5%
Rs. 5,00,000- Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

Plus: -

Surcharge: - 10% of income tax where total income exceeds Rs. 50,00,000.

15% of income tax where total income exceeds Rs. 1,00,00,000.

25% of income tax where total income exceeds Rs. 2,00,00,000.

37% of income tax where total income exceeds Rs. 5,00,00,000.

Health and Education cess: - 4% of income tax and surcharge.

3. Income tax applicable to Individual and HUF under new optional tax regime (Section 115BAC)1.

A new tax regime for Individual and HUF has been proposed by the Finance Bill, 2020 to tax the income of such assessees at lower tax rates if they agree to forego prescribed deductions and exemptions under the Income Tax Act. Special provision for calculating income of assessees opting for this section is prescribed under the said section.

Net income range Any Individual/HUF
Up to Rs. 2,50,000 Nil
From Rs 2,50,001 to Rs 5,00,000 5%
From Rs 5,00,001 to Rs 7,50,000 10%
From Rs 7,50,001 to Rs 10,00,000 15%
From Rs 10,00,001 to Rs 12,50,000 20%
From Rs 12,50,001 to Rs 15,00,000 25%
Above Rs. 15,00,000 30%

Plus: -

Surcharge: - 10% of income tax where total income exceeds Rs. 50,00,000.

15% of income tax where total income exceeds Rs. 1,00,00,000.

25% of income tax where total income exceeds Rs. 2,00,00,000.

37% of income tax where total income exceeds Rs. 5,00,00,000.

Health and Education cess: - 4% of income tax and surcharge.

4. Income Tax Rate for Partnership Firm:

A partnership firm (including LLP) is taxable at 30%.

Plus:

Surcharge:- 12% of tax where total income exceeds Rs. 1 crore.

Health and Education cess: 4% of income tax plus surcharge.

5. Tax Rate for Companies:

5.1. Tax rates for domestic companies:

Particulars Tax rates
Company opting for section 115BA* 25%
Company having turnover or gross receipt of up to Rs. 400 crore in the previous year 2017-18* 30%
Company opting for section 115BAA** 22%
Company opting for section 115BAB** 15%
Any other company* 30%
MAT*** 15%

5.2. Tax rates for foreign companies:

The tax rate for foreign company is 40%.

Plus: -

Surcharge:-

Company Net income is between Rs. 1Cr. - 10 Cr. Net income exceeds Rs. 10Cr.
Domestic company 7% 12%
Foreign company 2% 5%

Health and Education cess: 4% of income tax plus surcharge.

6. Income Tax Slab Rate for Co-operative Society:

6.1. Income tax rates under the old regime: -

Net income range Income-Tax rate
Up to Rs. 10,000 10%
Rs. 10,000 to Rs. 20,000 20%
Above Rs. 20,000 30%

Plus:

Surcharge:- 12% of tax where total income exceeds Rs. 1 crore.

Health and Education cess: 4% of income tax plus surcharge.

6.2. Income tax applicable to co-operative society under new optional tax regime (Section 115BAC): -

Income of a co-operative society under the new regime is taxable at flat rate of 22% provided it forgoes specified deductions and exemptions and computes its income in accordance with the provisions of the new inserted section.

Plus:

Surcharge:- 10% of income tax.

Health and Education cess: 4% of income tax plus surcharge.

7. Income Tax Slab Rate for Local Authority:

A local authority is taxable at 30%.

Plus:

Surcharge:- 12% of tax where total income exceeds Rs. 1 crore.

Health and Education cess: 4% of income tax plus surcharge.

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1.  This option is not available to any other person other than an Individual or HUF.