Rates of Income Tax

A. Normal Rates

1. Tax Rates for Individuals/HUF/AOP/BOI

For A.Y. 2019-20 (Refer Notes)
Income	Rate (%)
Up to ₹ 250,000*	NIL
₹ 250,001 to ₹ 500,000	5%
₹ 500,001 to ₹ 1,000,000	20%
Above ₹ 1,000,000	30%
Surcharge of 10% applicable, if total income exceeds ₹ 50,00,000/- and Surcharge of 15% applicable, if the total income exceeds ₹ 1,00,00,000/-.
Health & Education Cess @ 4% leviable on tax including surcharge

Notes:

1. *Threshold limit for a resident individual who is of the age of 60 years or more but less than 80 years will be ₹3,00,000/- and for a resident individual who is of the age of 80 years or more will be ₹5,00,000/-.
2. Rebate up to ₹2,500/- from tax if taxable income is below ₹3,50,000/-, to a resident individual
3. Marginal relief available.

For A.Y. 2020-21 (Refer Notes)
Income	Rate (%)
Up to ₹ 250,000*	NIL
₹ 250,001 to ₹ 500,000	5%
₹ 500,001 to ₹ 1,000,000	20%
Above ₹ 1,000,000	30%

 

Surcharge in case Total Income exceeds	Rate of Surcharge (%)
₹ 50,00,000	10%
₹ 1,00,00,000	15%
₹ 2,00,00,000	25%
₹ 5,00,00,000	37%
Health and Education Cess @ 4% leviable on tax including surcharge

Notes:

1. * Threshold limit for a resident individual who is of the age of 60 years or more but less than 80 years will be ₹3,00,000/- and for a resident individual who is of the age of 80 years or more will be ₹5,00,000/-
2. Rebate up to ₹12,500/- from tax if taxable income is up to ₹5,00,000/-, to a resident individual
3. Marginal relief available.

2. Tax Rates for Firms (including Limited Liability Partnership)

Asst. Year	Tax %	Surcharge %	Health & Education Cess%	Total %
2019-20	30	0/12	4	31.20/34.944
2020-21	30	0/12	4	31.20/34.944
Surcharge applicable in case of firm having a total income exceeding ₹ 1,00,00,000/-.

Notes:

1. Marginal relief available.

3. Tax Rates for Domestic Companies other than (a) below

Asst. Year	Tax %	Surcharge %	Health & Education Cess%	Total %
2019-20	30	0/7/12	4	31.2/33.384/34.944
2020-21	30	0/7/12	4	31.2/33.384/34.944
Surcharge @ 7% if total income above ₹ 1,00,00,000/- and Surcharge @ 12% applicable if total income above ₹ 10,00,00,000/-.

Notes:

1. Marginal relief available.

(a) Tax rate is 25% if following conditions satisfied:

Asst. Year	Tax %	Surcharge %	Health & Education Cess%	Total %	Conditions
2019-20	25	0/7/12	4	26/27.82/29.12	Turnover or gross receipts of the domestic company in the previous year 2016-17 (for AY 2019-20) does not exceed ₹ 250 crore
2020-21	25	0/7/12	4	26/27.82/29.12	Turnover or gross receipts for the domestic company in previous year 2017-18 (for AY 2020-21) doesn’t exceed ₹ 400 crore.
Surcharge @ 7% if total income above ₹ 1,00,00,000/- and Surcharge @ 12% applicable if total income above ₹ 10,00,00,000/-

Marginal Relief available in all the above cases.

4. Tax Rates for foreign companies (on income other than Royalty and Fees for Technical Services)

Asst. Year	Tax %	Surcharge %	Health & Education Cess%	Total %
2019-20	40	0/2/5	4	41.60/42.432/43.68
2020-21	40	0/2/5	4	41.60/42.432/43.68

Notes:

1. Surcharge @ 2% if total income is above ₹1,00,00,000/- and up to ₹10,00,00,000/- and @ 5% if total income above ₹10,00,00,000/-.
2. Marginal relief available.

5. Dividend Distribution Tax (A.Ys 2019-20 & 2020-21)

Income	Tax %	Surcharge %	Health & Education Cess %	Total %
(i) Under Section 115-O
Other than deemed dividend u/s. 2(22)(e)	17.647	12	4	20.5552941
(ii) U/s. 115-O applicable to deemed dividend u/s. 2(22)(e)	30	12	4	34.944
(iii) Buy-back of shares by domestic companies	20	12	4	23.296

Notes:

1. Parent company will be allowed set off of dividend received from its subsidiary in computing its dividend distribution tax subject to certain conditions.
2. Earlier Dividend Distribution tax was applicable on buy back of shares only in case of unlisted shares, now, it has been extended to listed shares as well.

6. Co-operative Society

Income A.Ys 2019-20 &  2020-21	Rate %	Health Education Cess	Total %
Up to ₹ 10,000	10	4	10.40
₹ 10,001 to
₹ 20,000	20	4	20.80
₹ 20,001 and above	30	4	31.20
Assessment Year 2019-20, surcharge of 12% applicable, if total income exceeds ₹ 1,00,00,000/-.

Notes:

1. Marginal relief available.

B. Special Rates

1. B. Long Term Capital Gains
   1. On Equity shares and units

Long term capital gains arising on transfer of equity shares on a recognised stock exchange in India or units of an equity oriented Mutual Fund (if more than 65% of total proceeds of the fund are invested in equity shares), and on which Securities Transaction Tax is chargeable.

For all Assessees	A.Ys 2019-20 & 2020-21
Up to ₹ 1,00,000	Nil
Above ₹ 1,00,000	10%

2. On other assets and equity shares, units except falling in (a) above for A.Ys. 2019-2020 and 2020-21.

Income Tax on Long Term Capital Gains
Resident Individual or HUF	20%
Domestic Companies	20%
Non-residents	20%
NRIs (for gains u/s. 115E)	10%
Any other case	20%
Surcharge and Health and Education Cess as applicable

Notes:

1. In case of Resident Individual and HUF, where tax liability arises only because of the inclusion of long term capital gains, tax to be levied at 20% or 10% as the case may be, on the excess over the minimum exemption limit.
2. No deduction under Chapter VIA (80C to 80U).

2. Short Term Capital Gains
   1. On Equity shares and units

Short term capital gains arising on transfer of equity shares on recognised stock exchange in India or units of an Equity Oriented Mutual Fund (if more than 65% of total proceeds of the fund are invested in equity shares), and on which Securities Transaction Tax is chargeable.

For All Assessees

15% plus (Health and Education Cess) as applicable

Notes:

1. In case of resident individual and HUF, relief from STCG available in respect of the amount by which the taxable income other than STCG falls short of Basic Exemption Limit.
2. No deduction under Chapter VI-A (80C to 80U).

b.

On Short Term Capital Gains on Assets other than in (a) above

At normal slab rates

3. Minimum Alternate Tax payable by Companies – As a percentage of Book Profit

Type of companies	Domestic Company			Foreign Company
A.Y. 2019-20 &  AY. 2020-21	Below ₹ 1 crore	₹ 1 crore to  ₹ 10 crore	Above ₹ 10 crore	Below ₹ 1 crore	₹ 1 crore to₹ 10 crore	Above  ₹ 10 crore
Rate of Tax	18.5	18.5	18.5	18.5	18.5	18.5
Surcharge	–	7	12	–	2	5
Health & Education Cess	4	4	4	4	4	4
Effective Rate	19.24	20.5868	21.5488	19.24	19.6248	20.202

Notes:

1. MAT Credit allowed to be carried forward for set off for 15 years.
2. Marginal relief available.
3. Rate of Tax will be 9% if the assessee is a unit located in an International Financial Services Centre and derives income in convertible foreign exchange.

4. Alternate Minimum Tax (AMT) payable by Non-Corporate - As percentage of Adjusted Total Income

A.Y’s 2019-20 & 2020-21	Below ₹ 1 crore	Above ₹ 1 crore
Rate of Tax	18.5	18.5
Surcharge	–	12
Health & Education Cess	4	4
Effective Rate	19.24	21.5488

Notes:

1. AMT credit allowed to be carried forward for set off for 15 years
2. Marginal relief available.
3. Rate of Tax will be 9% if the assessee is a unit located in an International Financial Services Centre and derives income in convertible foreign exchange.

5. Advance Tax

Assessment Years 2019-20 & 2020-21	Advance Tax Obligation (If tax payable exceeds ₹ 10,000)
Due Date of Installment payable on or before	Amt. Payable as a % of Tax (For all Assessee’s)
15th June	15%
15th September	30%
15th December	30%
15th March	Balance

No advance tax to be paid by senior citizen if he/she does not have income under head “Profit and Gains of Business or Profession”.

An eligible assessee engaged in a business referred in Section 44AD/44ADA is liable to pay advance tax in a single instalment on or before the 15th of March every financial year.

*MAT also subject to Advance Tax. Refer Circular No. 13 of 2001, [252 ITR (St) 52]

**AMT also subject to Advance tax.