INCOME TAX SLAB
Male Resident / Female Resident/ HUF
|
|||
Sr. No.
|
Net Income
Range
|
Income-tax Rate*
|
|
AY 2021-22
|
AY 2020-21
|
||
1
|
Up to Rs.
2,50,000
|
Nil
|
Nil
|
2
|
Rs.
2,50,001 to Rs. 5,00,000
|
5%
|
5%
|
3
|
Rs.
5,00,001 to Rs. 10,00,000
|
20%
|
20%
|
4
|
Above Rs.
10,00,000
|
30%
|
30%
|
A resident individual, whose taxable income does not exceed Rs. 5,00,000,
can claim a tax rebate under section 87A. The amount of rebate shall be lower
of 100% of income-tax or Rs. 12,500.
Senior
Citizen
|
|||
(Resident
Individual who is aged 60 years or more but less than 80 years at any time
during the previous year)
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Sr.
No.
|
Net Income
Range
|
Income-tax Rate*
|
|
AY 2021-22
|
AY 2020-21
|
||
1
|
Up to Rs.
3,00,000
|
Nil
|
Nil
|
2
|
Rs.
3,00,001 to Rs. 5,00,000
|
5%
|
5%
|
3
|
Rs.
5,00,001 to Rs. 10,00,000
|
20%
|
20%
|
4
|
Above Rs.
10,00,000
|
30%
|
30%
|
A resident
individual, whose taxable income does not exceed Rs. 5,00,000, can claim a tax
rebate under section 87A. The amount of rebate shall be lower of 100% of
income-tax or Rs. 12,500.
Super Senior
Citizen
|
|||
(who is 80 years or more at any time during the
previous year)
|
|||
Sr.
No.
|
Net Income
Range
|
Income-tax Rate*
|
|
AY 2021-22
|
AY 2020-21
|
||
1
|
Up to Rs.
5,00,000
|
Nil
|
Nil
|
2
|
Rs.
5,00,001 to Rs. 10,00,000
|
20%
|
20%
|
3
|
Above Rs.
10,00,000
|
30%
|
30%
|
* The above rates are
exclusive of Surcharge and Cess.
Surcharge Applicable to Individual/HUF:
Net Income
Range
|
Surcharge AY 21-22
|
Surcharge AY 20-21
|
Exceeding 50 lac but up to Rs. 1 Crore
|
10%
|
10%
|
Exceeding Rs. 1 Crore but up to Rs. 2
Crores
|
15%
|
15%
|
Exceeding Rs. 2 Crores but up to Rs. 5
Crores*
|
25%
|
25%
|
Exceeding Rs. 5 Crores*
|
37%
|
37%
|
Effective tax rate (above Rs. 5 crore)
|
42.744%
|
42.744%
|
* The surcharge on the income chargeable under section 111A and 112A
would be restricted to 15%. The health and education cess at the rate of 4%
shall be computed on the aggregate of Income Tax and Surcharge.
Optional
Tax Regime for Individual/HUF- Section 115BAC (Applicable from A.Y. 2021-22)
Union Budget
2020 has introduced a new scheme for Individuals/HUF’s with lower rates subject
to foregoing of certain exemptions/deductions.
Net Income
Range
|
Tax Rate* (under the
new regime)
|
Tax Rate* (under the
old regime)
|
Up to Rs. 2,50,000
|
Nil
|
Nil
|
Rs. 2,50,001 to Rs. 5,00,000
|
5%
|
5%
|
Rs. 5,00,001 to Rs. 7,50,000
|
10%
|
20%
|
Rs. 7,50,001 to Rs. 10,00,000
|
15%
|
20%
|
Rs. 10,00,001 to Rs. 12,50,000
|
20%
|
30%
|
Rs. 12,50,001 to Rs. 15,00,000
|
25%
|
30%
|
Above Rs.15,00,000
|
30%
|
30%
|
*The above rates are
exclusive of surcharge and cess.
The conditions under which an
individual/HUF can opt for this scheme are as follows:
1.
The new scheme is optional and the assessee will have
to opt for being covered by the new scheme in the prescribed manner:
a)
Where such individual or HUF does not have business
income, the option is to be exercised for every year along with the filing of
the return of income under section 139(1) for the year.
b)
Where such individual or HUF has business income, the
option is to be exercised on or before the due date of filing the return of
income and such option once exercised shall apply for that previous year and to
all subsequent years.
2.
If the assessee having business income has opted to be
governed by the new scheme, then, subsequently, he can opt out only once and
thereafter, he will never be eligible to opt for the new scheme again except
when he ceases to have any business income.
3.
The above concessional tax rates can be opted after
foregoing certain exemptions / deductions such
as:
a)
Leave Travel Concession – section 10(5)
b)
House Rent Allowance – section 10(13A)
c)
Specified allowances exempt under section 10(14)
(allowances granted to employees other than transport allowance, conveyance
allowance, per-diems and travel and transfer allowance as mentioned in the
Explanatory Memorandum)
d) Allowances to MPs / MLAs –
section 10(17)
e) Clubbed income of minor up
to Rs. 1,500 – section 10(32)
f)
Exemption for unit in SEZ – section 10AA
g) Standard and other
deductions (including profession tax) from salary – section 16
h) Interest in respect of Self
Occupied Property – section 24(b)
i)
Set off of loss under the head income from house property against other
heads – section 71
j)
Additional depreciation – section 32(1)(iia)
k) Deduction under sections
32AD, 33AB and 33ABA
l)
Specified deduction for donations or for expenditure
on scientific research – section 35(1)(ii)/(iia)/(iii) or section 35(2AA)
m)
Weighted deduction for expenditure on specified
business /agricultural extension project – sections 35AD and 35CCC
n) Standard deduction for
family pension – section 57(iia)
o)
Deductions under Chapter VI-A (such as section 80C,
80D, 80 TTA, 80TTB, 80G etc.) other than the following: -
·
80CCD (2) – employer’s contribution in notified pension scheme
·
80JJAA – employment of new employees
·
80LA – IFSC centre
p)
Exemption in respect of voucher granted for free food
and Beverages to employees, as mentioned in Explanatory Memorandum
q) Any exemption or deduction
for allowances or perquisites provided under any other law
4.
There is no separate higher threshold for senior and
very senior citizens in the optional scheme.
5.
Surcharge and Cess remain unchanged.
6.
Once this option is exercised, provisions relating to
Alternate Minimum Tax and Credit relating to the same will not be applicable.
For this, amendments have been made in sections 115JC / 115JD.
If an assessee does not opt for the new scheme, he will continue to be governed by the existing regime. The slabs, tax rates and surcharge as applicable to individuals and HUFs have remained unchanged.
a) Tax Rates for AOP/BOI
Sr.
No.
|
Net Income
Range
|
Income Tax
Rate*
|
|
AY 21-22
|
AY 20-21
|
||
1.
|
Up to Rs.2,50,000
|
Nil
|
Nil
|
2.
|
Rs. 2,50,001 to Rs. 5,00,000
|
5%
|
5%
|
3.
|
Rs. 5,00,001 to Rs. 10,00,000
|
20%
|
20%
|
4.
|
Above Rs.10,00,000
|
30%
|
30%
|
*The above rates are exclusive of surcharge and cess.
The rates of surcharge and cess
shall be the same as applicable to Individuals/HUFs.
b) Tax
Rates for Firm/LLP
The tax rate for firm/LLP shall be the rate of 30%.
(exclusive of surcharge and cess).
Surcharge:
Net Income
Range
|
Surcharge
AY 21-22
|
Surcharge
AY 20-21
|
Income up to Rs. 1 crore
|
Nil
|
Nil
|
Income exceeding Rs. 1 crore
|
12%
|
12%
|
The health and education cess at the rate of 4% shall be computed on the
aggregate of Income Tax and Surcharge.
c) Tax Rates for Co-Operative Societies:
Sr.
No.
|
Net Income
Range
|
Income Tax
Rate*
|
|
AY 21-22
|
AY 20-21
|
||
1.
|
Up to Rs.10,000
|
10%
|
10%
|
2.
|
Rs.10,001 to Rs. 20,000
|
20%
|
20%
|
3.
|
Above Rs.20,000
|
30%
|
30%
|
*The above rates are exclusive of surcharge and cess.
Surcharge:
Net Income
Range
|
Surcharge
AY 21-22
|
Surcharge
AY 20-21
|
Income up to Rs. 1 crore
|
Nil
|
Nil
|
Income exceeding Rs. 1 crore
|
12%
|
12%
|
The health and education cess at the rate of 4% shall be computed on the
aggregate of Income Tax and Surcharge.
Option of concessional tax scheme to resident co-operative societies –
Section 115BAD
A new Section 115BAD is inserted for resident co-operative societies who
have the option to pay tax at the rate of 22% (plus surcharge @ 10%) instead of 30%.
The conditions under section 115BAD (2) mention that the total income of
a co-operative housing society shall be computed:
1.
Without deduction under provisions of section 10AA,
section 32(1)(iia), section 32AD, section 33AB, section 33ABA, section
35(1)(ii), section 35(1)(iia), section 35(1)(iii), section 35(2AA), section
35AD, section 35CCC or any provisions of Chapter VI-A (including section 80P)
other than section 80JJAA;
2.
Without set off of any carried forward losses or
depreciation from earlier assessment year in case such a loss or depreciation
is attributable to deductions referred in paragraph 1 above; and
3.
By claiming depreciation if any under section 32
except section 32(1)(iia) determined in the manner prescribed.
In case the co-operative society fails to satisfy the conditions
mentioned under sub-section (2) of section 115BAD then the concessional rate of
tax shall become invalid for that and subsequent assessment years as if the
option to pay tax at concessional rate had never been exercised and other
provisions of the Act shall apply.
Section 115BAD(3) provides that the loss or depreciation referred in
section 115BAD(2)(ii) shall be deemed to have been given full effect to and no
further deduction for such loss or depreciation shall be allowed for any
subsequent year.
Where depreciation allowance in respect of block of asset was not given
full effect prior to the assessment years beginning on 1st April, 2021,
corresponding adjustment shall be made to the written down value of such block
of assets as on 1st April, 2020 in the prescribed manner, if the option to pay
at concessional rate of tax is exercised for a previous year beginning 1st
April, 2020.
Section 115BAD (4) provides that in case a person has a unit in
International Financial Services Centre (IFSC), a deduction under section 80LA
shall be available to such a unit subject to conditions mentioned under that section.
Section 115BAD (5) provides that the co-operative societies must opt for
concessional rate of tax on or before the due date mentioned under section
139(1) for furnishing the return of income for any previous year relevant to
Assessment Year 2021-22 or any subsequent assessment year. Such option, once
exercised, shall continue to apply for all subsequent assessment years and
cannot be subsequently withdrawn for the same or any subsequent year.
Once this option is exercised, provisions relating to Alternate Minimum
Tax and Credit relating to the same will not be applicable.
d) Local Authority:
The tax
rate for local authorities shall be the rate of 30%. (exclusive of surcharge and cess). Surcharge:
Net Income
Range
|
Surcharge
AY 21-22
|
Surcharge
AY 20-21
|
Income up to Rs. 1 crore
|
Nil
|
Nil
|
Income exceeding Rs. 1 crore
|
12%
|
12%
|
The health and
education cess at the rate of 4% shall be computed on the aggregate of Income
Tax and Surcharge.
e) Tax Rates for Companies:
Types of Companies
|
Income not exceeding Rs. 1 crore
|
Income exceeding Rs.
1
crore and
up to Rs. 10 crores
|
Income above Rs. 10 crores
|
|||
Effective tax rate
(normal)
|
Effective tax rate
(MAT)
|
Effective tax rate
(normal)
|
Effective tax rate
(MAT)
|
Effective tax rate
(normal)
|
Effective tax rate
(MAT)
|
|
Existing company opted
for Sec 115BA
|
26%
|
15.60%
|
27.82%*
|
16.69%*
|
29.12%*
|
17.47%*
|
Domestic Company with turnover up to Rs. 400 crores
in FY 2018-19
and avails any tax incentives or exemptions
or tax
holiday
|
26%
|
15.60%
|
27.82%*
|
16.69%*
|
29.12%*
|
17.47%*
|
Other domestic company
|
31.20%
|
15.60%
|
33.384%*
|
16.69%*
|
34.944%*
|
17.47%*
|
Domestic Company
exercising
option to pay tax as per section 115BAA
|
25.168%**
|
Nil
|
25.168%**
|
Nil
|
25.168%**
|
Nil
|
New domestic manufacturing companies exercising option to pay tax as per section
115BAB (including company engaged in generation of
electricity)
|
17.16% **
|
Nil
|
17.16%**
|
Nil
|
17.16%**
|
Nil
|
Foreign Company
|
41.60%^
|
15.60%^#
|
42.43%^
|
15.912%^#
|
43.68%^
|
16.38%^#
|
* Includes
surcharge at the rate of 7% in case of income from Rs. 1
crore up to Rs. 10 crore and 12% in
case of income above Rs. 10 crores.
** Includes surcharge at the rate of 10%. It is assumed that other
provisions of Chapter XII are not attracted in these cases.
^ Includes surcharge at the rate of 2% in case
of income from Rs. 1 crore up to Rs. 10 crore and 5% in case of income above Rs.10 crores.
# If MAT is
applicable to the foreign company.
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