Income Tax Rate for AY 2020-21 (FY 2019-20)
1. Individual (resident or non-resident) or HUF or AOP or BOI or any other artificial juridical person
| Taxable Income | Tax Rate |
| Up to Rs. 2,50,000 | Nil |
| Rs. 2,50,000 to Rs 5,00,000 | 5% |
| Rs. 5,00,000 to Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
Please note that this exemption limit will be applicable also on non-resident individual Irrespective of their age.
2. Resident senior citizen (who is age 60 years or more but less than 80 years on the last day of the previous year)
| Taxable Income | Tax Rate |
| Up to Rs. 3,00,000 | Nil |
| Rs. 3,00,000 to Rs 5,00,000 | 5% |
| Rs. 5,00,000 to Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
3. Resident super senior citizen (who is the age of 80 years or more at any time during the previous year)
| Taxable Income | Tax Rate |
| Up to Rs. 5,00,000 | Nil |
| Rs. 5,00,000 to Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
Surcharge and Health and Education cess applicable in the aforementioned cases as follows:-
Surcharge:
- 10% of income tax, where total income exceeds INR 50 lakh up to INR 1 crore.
- 15% of income tax, where the total income exceeds INR 1 crore up to INR 2 crore.
- 25% of income tax, where total income exceeds Rs 2 crore up to Rs 5 crore
- 37% of income tax, where total income exceeds Rs 5 crore. (Refer Note 1)
Health and Education Cess: 4% of Income Tax + Surcharge (Refer Note 2)
Note 1: Marginal Relief
The surcharge shall be subject to marginal relief:
- Where the income of assessee exceeds Rs. 50 lakhs, the total amount payable by the assessee as an income-tax and surcharge shall not exceed the total amount payable as an income-tax on total income of Rs. 50 lakhs by more than the amount of assessee income that exceeds Rs. 50 lakhs.
- Where the income of assessee exceeds Rs. 1 crore, the total amount payable by the assessee as an income-tax and surcharge shall not exceed the total amount payable as an income-tax on total income of Rs. 1 crore by more than the amount of assessee income that exceeds Rs. 1 crore.
Note 2: Rebate U/s. 87A
If Assessee being a resident individual in India, whose total income after claiming the deduction under chapter VI-A does not exceeds INR 5,00,000/- shall be entitled to claim rebate u/s 87A of an amount equal to 100% of such Income Tax or an amount of INR 12,500/-, whichever is less. Further, please note that this rebate is applied to the total tax before adding the Education Cess.
4. Income Tax Rate for AY 2020-21 for Partnership Firm / LLP/ Local Authority
Income Tax Rate: 30%
Surcharge:
- 12% of taxable income if net income exceeds 1 crore.
- However, the surcharge shall be subject to marginal relief.
Health and Education Cess: 4% of Income Tax + Surcharge
5. Income Tax Rate for AY 2020-21 for Co-operative Society
| Taxable income | Tax Rate |
| Up to Rs. 10,000 | 10% |
| Rs. 10,000 to Rs. 20,000 | 20% |
| Above Rs. 20,000 | 30% |
Surcharge:
- 12% of taxable income if net income exceeds 1 crore.
- However, the surcharge shall be subject to marginal relief.
Health and Education Cess: 4% of Income Tax + Surcharge
6. Income Tax Rate for AY 2020-21 for Domestic Company
| Particulars | Rates |
| Where its total turnover or gross receipt during the previous year 2017-18 does not exceed Rs. 400 crore | 25% |
| Where it opted for Section 115BA | 25% |
| Where it opted for Section 115BAA (Refer Note 1) | 22% |
| Where it opted for Section 115BAB
(Refer Note 2) |
15% |
| Any other domestic company | 30% |
Surcharge:
- 7% of taxable income if net income exceeds INR 1 crore but does not exceed INR 10 crore.
- 12% of taxable income if net income exceeds INR 10 crore.
The surcharge shall be subject to marginal relief:
- Where the income of assessee exceeds Rs. 50 lakhs, the total amount payable by the assessee as an income-tax and surcharge shall not exceed the total amount payable as an income-tax on total income of Rs. 50 lakhs by more than the amount of assessee income that exceeds Rs. 50 lakhs.
- Where the income of assessee exceeds Rs. 1 crore, the total amount payable by the assessee as an income-tax and surcharge shall not exceed the total amount payable as an income-tax on total income of Rs. 1 crore by more than the amount of assessee income that exceeds Rs. 1 crore.
Health and Education Cess: 4% of Income Tax Plus Surcharge
7. Income Tax Rate for AY 2020-21 for Foreign Company
| Nature of Income | Tax Rate |
| Royalty received from Government or an Indian concern or fees for rendering technical services where such agreement has, in either case, been approved by the Central Government | 50% |
| Any other income | 40% |
Surcharge:
- 2% of taxable income if net income exceeds INR 1 crore but does not exceed INR 10 crore.
- 5% of taxable income if net income exceeds INR 10 crore.
The surcharge shall be subject to marginal relief:
- Where the income of assessee exceeds Rs. 50 lakhs, the total amount payable by the assessee as an income-tax and surcharge shall not exceed the total amount payable as an income-tax on total income of Rs. 50 lakhs by more than the amount of assessee income that exceeds Rs. 50 lakhs.
- Where income of assessee exceeds Rs. 1 crore, the total amount payable by the assessee as an income-tax and surcharge shall not exceed the total amount payable as an income-tax on total income of Rs. 1 crore by more than the amount of assessee income that exceeds Rs. 1 crore.
Health and Education Cess: 4% of Income Tax Plus Surcharge
Note:
- Detail explanation of Section 115BAA:
- Following conditions need to be satisfied for getting benefit of lower tax rate introduced by Section 115BAA:
- without claiming exemption/ deduction
- u/s 10AA [SEZ units],
- u/s 32(1)(iia) [additional depreciation qua new plant and machinery @ 20%/ 30%],
- u/s 32AD [15% on new assets in undertaking set up in specified backward areas in Andhra Pradesh, Bihar, Telangana, and West Bengal]
- u/s 33AB [specified percentage of amounts deposited with Tea/ Coffee/ Rubber Board]
- u/s 33ABA [specified percentage of amounts deposited in Site Restoration Account]
- u/s 35(1)(ii)/(iia), 35(2AA) or 35(2AB) [specified deduction for scientific research]
- u/s 35AD [expenditure on specified business]
- u/s 35CCC [expenditure on agricultural extension project]
- u/s 35CCD [expenditure on skill development project]under Part C of Chapter VIA except section 80JJAA or 80LA or 80M of the Act (such as 80IA/IB/IC/ID/IE etc.)
- Without a set-off of any brought forward losses to the extent, such loss relates to deductions mentioned above. Such losses would also not be allowed to be carried forward to subsequent years.
- After claiming depreciation other than additional depreciation u/s 32(1)(iia).
The benefit of a lower rate under the aforesaid section can be exercised by the company from any year commencing from AY 2020-21 or onwards. Such an option is to be exercised in a prescribed manner, before the due date of return u/s 139(1) for the year in which option is exercised. The option once exercised would be binding for subsequent years and cannot be withdrawn.
- Companies availing benefit of lower tax rate under new provisions of sections 115BAA have been Exempted from MAT on book profit under section 115JB
- Detail explanation of Section 115BAB:
- A. Following conditions need to be satisfied with getting the benefit of lower tax rate introduced by Section 115BAB:
- a) If such company is set-up and registered, on or after 1st October 2019 and commences manufacturing activity up to 31st March, 2023.
- b) The company is not engaged in any business other than the business of manufacture or production of any article or thing and research in relation to, or distribution of, such article or thing manufactured or produced by it. The following businesses would not be considered as a business of manufacture or production of any article or thing:
- Development of computer software in any form or in any media;
- Mining;
- Conversion of marble blocks or similar items into slabs;
- Bottling of gas into a cylinder;
- Printing of books or production of a cinematograph film; or
- Any other business as may be notified by the Central Government on this behalf. The business of generation of electricity shall be regarded as the business of manufacture or production of any article or thing for this purpose.
- c) without claiming exemption/ deduction
- u/s 10AA [SEZ units],
- u/s 32(1)(iia) [additional depreciation qua new plant and machinery @ 20%/ 30%],
- u/s 32AD [15% on new assets in undertaking set up in specified backward areas in Andhra Pradesh, Bihar, Telangana, and West Bengal]
- u/s 33AB [specified percentage of amounts deposited with Tea/ Coffee/ Rubber Board]
- u/s 33ABA [specified percentage of amounts deposited in Site Restoration Account]
- u/s 35(1)(ii)/(iia), 35(2AA) or 35(2AB) [specified deduction for scientific research]
- u/s 35AD [expenditure on specified business]
- u/s 35CCC [expenditure on agricultural extension project]
- u/s 35CCD [expenditure on skill development project]
- under Part C of Chapter VIA except section 80JJAA or 80M of the Act (such as 80IA/IB/IC/ID/IE etc.)
- d) Without a set-off of any brought forward losses to the extent, such loss relates to deductions mentioned above. Such losses would also not be allowed to be carried forward to subsequent years.
- e) After claiming depreciation other than additional depreciation u/s 32(1)(iia).
- f) Additionally, following conditions must be fulfilled by the company to avail benefit of lower tax rate:
- the company must not be formed by splitting up, or the reconstruction of a business already in existence
- company must not use machinery or plant previously used for any purpose. Used plant and machinery to the extent of 20% of the total value of plant and machinery is the permissible
- company must not use building previously used as a hotel or a convention Centre.
- Companies availing benefit of lower tax rate under new provisions of sections 115BAB have been Exempted from MAT on book profit under section 115JB