(A) For an individual (man or woman), resident in India who is of the age of 80 years or more at any time during the previous year:
I – Old Regime
Total Income
Rate of Tax
Upto ₹5,00,000
Nil
₹5,00,001 to ₹10,00,000
20%
Above ₹10,00,000
30%
II – New Regime
Total Income
Rate of Tax
Upto ₹2,50,000
Nil
₹2,50,001 to ₹5,00,000
5%
₹5,00,001 to ₹7,50,000
10%
₹7,50,001 to ₹10,00,000
15%
₹10,00,001 to ₹12,50,000
20%
₹12,50,001 to ₹15,00,000
25%
Above ₹15,00,000
30%
(B) For an individual (man or woman), 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.
I – Old Regime
Upto ₹3,00,000
Nil
₹3,00,001 to ₹5,00,000
5%
₹5,00,001 to ₹10,00,000
20%
Above ₹10,00,000
30%
II – New Regime
Total Income
Rate of Tax
Upto ₹2,50,000
Nil
₹2,50,001 to ₹5,00,000
5%
₹5,00,001 to ₹7,50,000
10%
₹7,50,001 to ₹10,00,000
15%
₹10,00,001 to ₹12,50,000
20%
₹12,50,001 to ₹15,00,000
25%
Above ₹15,00,000
30%
(C) For an individual, [other than mentioned in (A) & (B) above] HUF, AOP/BOI (other than a Cooperative Society) and Artificial Juridical Person.
Upto ₹2,50,000
Nil
₹2,50,001 to ₹5,00,000
5%
₹5,00,001 to ₹10,00,000
20%
Above ₹10,00,000
30%
‘Surcharge’ for assessment year 2020-21 & 2021-22
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 crore
10% of such income-tax
(b) where the total income exceeds ₹1 crore but does not exceed ₹2 crore
15% of such income-tax
(c) where the total income exceeds ₹2 crore but does not exceed ₹5 crore
25% of such income-tax
(d) where the total income exceed ₹5 crore
37% of such income-tax
Marginal Relief in case of Individual :
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 & 2021-22 :
‘Health and Education Cess (H&EC) on Income Tax’ @ 4% on income tax (inclusive of surcharge, wherever applicable) shall be levied.
Rebate of maximum ₹12,500 for resident individuals having total income up to ₹5,00,000 [Section 87A]
With a view to provide tax relief to the individual tax payers who are in lower income bracket, the Act for assessment year 2020-21 has provided rebate from the tax payable by an assessee, if the following condition and satisfied:
(i) The assessee is an individual
(ii) He is resident in India,
(iii) 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.
2. Income Tax Rates In case of a ‘Domestic Company’ for the Assessment Year 2020-21 & 2021-22
I – Old Regime
Rate of Tax : 30%
II – New Regime i.e. u/s 115BAA provided it satisfies the conditions of section 115BAA(2)
Rate of Tax : 22%
III. If the company is a new manufacturing company and it opts to be taxed u/s 115BAB(2) provided it satisfies the conditions of section 115BAB(2)
Rate of Tax : 15%
‘Surcharge’ In case of a ‘Domestic Company’ :
Old Regime as (I) above :
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.
New Regime as (II) & (III) above :
10% (irrespective of the fact whether the total income is less than or more than ₹1 crore)
‘Marginal Relief’ In case of a ‘Domestic Company’ :
However, 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.
‘Health and Education Cess’ In case of a ‘Domestic Company’ 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. Income Tax Rates In case of a ‘Foreign Company’ for the Assessment Year 2020-21 & 2021-22
Rate of Tax : 40%
Surcharge In case of a ‘Foreign Company’:
Where the total income of a company other than a domestic company exceeds ₹1 crore but does not ₹10 crore, a surcharge of 2% of tax shall be levied.
Where the total income of such company exceeds ₹10 crore, a surcharge at the rate of 5% of tax shall be levied.
Marginal Relief In case of a ‘Foreign Company’ :
However, 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.
Health and Education Cess In case of a ‘Foreign Company’: 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.
4. Income Tax Rates In case of a ‘Firm’ (Including Limited Liability Partnership)
Rate of Tax : 30%
Surcharge In case of a ‘Firm’ :
The amount of income-tax shall be increased by a surcharge at the rate of 12% of such incometax in case of a firm having a total income exceeding ₹1 crore.
Marginal Relief In case of a ‘Firm’ :
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 In case of a ‘Firm’ : 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. Income Tax Rates In case of a ‘Co-operative Societies’ for the Assessment Year 2020-21 & 2021-22
There is no threshold limit for taxability of income in case of a co-operative society.
The slab rate for AY 2020-21 is as under:
Net Income Range
Rate of income Tax
Up to Rs. 10,000
10%
Rs. 10,001 – Rs. 20,000
Rs. 1,000 Plus 20% of the Amount by which the total income exceeds Rs. 10,000
Above Rs. 20,000
Rs. 3,000 Plus 30% of the Amount by which the total income exceeds Rs. 20,000
Surcharge is 12% of income-tax if net income exceeds Rs.1 Crore.
It is subject to marginal relief (in the case of a co-operative society having a net income of exceeding Rs.1 Crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 Crore by more than the amount of income that exceeds Rs. 1 crore).
Health and Education Cess In case of a ‘Co-operative Societies’:
4% of Income Tax Plus Surcharge
Marginal Relief In case of a ‘Co-operative Societies’:
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.
6. Income Tax Rates In case of a ‘Local Authorities’ for the Assessment Year 2020-21 & 2021-22
Local Authorities are Taxable at the Rate of 30%.
Surcharge In case of a ‘Local Authorities’ –
Surcharge is 12% of income-tax if net income exceeds Rs. 1 crore.
It is subject to marginal relief ( in the case of a local authority having a net income of exceeding Rs. 1 crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore).
Health and Education Cess In case of a ‘Local Authorities’-
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