Income Tax

Income Tax Slab Rate for AY 2020-2021

Here, we are discuss rates of taxes for Individuals, Firm and Company Applicable for AY 2020-21. And rate of Surcharge and Cess on apply on tax.

[1] Individuals

  1. Individual (resident or non-resident)

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 (See Notes)
Up to Rs. 2,50,000 Nil
Rs. 2,50.000- 5,00,000 5%
Rs. 5,00,000 – 10,00,000 20%
Above Rs. 10,00,000 30%
  1. Resident senior citizen

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 (See Notes)
Up to Rs. 3,00,000 Nil
Rs. 3,00.000- 5,00,000 5%
Rs. 5,00,000 – 10,00,000 20%
Above Rs. 10,00,000 30%
  1. Resident super senior citizen

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 (See Notes)
Up to Rs. 5,00,000 Nil
Rs. 5,00,000 – 10,00,000 20%
Above Rs. 10,00,000 30%

Notes

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

Health and Education cess

  • 4% of income tax and surcharge.

Rebate (Section 87A)

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. Hence, maximum rebate you can claim upto Rs.12500.

[2] Income Tax Rate for Partnership Firm

A partnership firm (including LLP) is taxable at 30%. This rate is subject to Surchage and Cess.

Notes

Surcharge

  • 12% of tax where total income exceeds Rs. 1 crore.

Health and Education cess

  • 4% of income tax and surcharge.

[3] Tax Rate for Companies

there are different rate of taxes for Domestic Companies and Foreign Companies.

Domestic Companies

Particulars Tax Rate
Total turnover or gross receipts during the previous year 2017-18 doesn’t exceed Rs. 250 Crore. 25%
Other domestic companies 30%

Foreign Companies

The tax rate for foreign company is 40%

All above rate of income tax is applicable for AY 2020-21.

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