INCOME TAX SLAB RATES FOR AY 2021-22 i.e. FY 2020-21
1. For An Individual (Resident or NRI and Age below 60 years), HUF, AOP, BOI or AJP :
| Net Annual Income/ Annual Taxable Income ( वार्षिक आय / कमाई ) |
Tax Rate | |
| Old Regime | New Regime (115BAC) | |
| Upto Rs 2,50,000 ( रु 2,50,000 तक ) | Nil | Nil |
| Rs 2,50,001 to 5,00,000 ( रु 2,50,001 से 5,00,000 तक ) | 5% | 5% |
| Rs 5,00,001 to 7,50,000 ( रु 5,00,001 से 7,50,000 तक) | 20% | 10% |
| Rs 7,50,001 to 10,00,000 ( रु 7,50,001 से 10,00,000 तक ) | 20% | 15% |
| Rs. 10,00,001 to 12,50,000 ( रु 10,00,001 से 12,50,000 तक ) | 30% | 20% |
| Rs. 12,50,001 to 15,00,000 ( रु 12,50,001 से 15,00,000 तक ) | 30% | 25% |
| Above Rs. 15,00,000 ( रु 15,00,000 के ऊपर ) | 30% | 30% |
Additional Components :
Surcharge :
| Range of Income | Rs. 50 Lakhs to Rs. 1 Crore | Rs. 1 Crore to Rs. 2 Crores | Rs. 2 Crores to 5 Crores | Rs. 5 Crores to 10 Crores | Above Rs. 10 Crores Above |
| Surcharge Rate | 10% | 15% | 25% | 37% | 37% |
Note : The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112A and 115AD. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%.
Health and Education Cess : 4% of Income tax plus Surcharge.
NOTE :
1. Rebate Under Sec-87A is available in both Old & New Tax Regime.
2. Both Slab Rates are applicable (An Assessee is free to choose any regime for any Assessment year).
[ 1. Sec-87A का Rebate नये और पुराने दोनों तरीके के Slab Rate में मिलेगा I
2. दोनों Slab Rates लागू रहेंगे, आप अपनी इच्छा से दोनों में से कोई एक Slab Rate चुन सकते है I ]
Sec-87A : Tax Rebate of upto Rs. 12,500 is allowed for those assessees having Net Annual Income/ Taxable Annual Income upto Rs. 5,00.000.
( Sec-87A यह बोलता है कि अगर आपका Annual Taxable Income रु 5,00,000 तक है तो आपको रु 12,500 तक का छूट मिल जायेगा Tax में ; मतलब ये कि अगर आपका रु 5,00,000 तक का Annual Taxable Income है तो आपको Tax नहीं देना होगा )
3. Assessees opting Old regime shall continue to avail all exemptions and deductions while assessees opting New regime will have to forgo certain exemptions and deductions.
In total, there are 70 deductions & exemptions that are not allowed in new regime, out of which the most commonly used are listed below :
| 1. Leave Travel Allowance (LTA) |
| 2. House Rent Allowance (HRA) |
| 3. Conveyance Allowance |
| 4. Relocation Allowance |
| 5. Helper Allowance |
| 6. Children Education Allowance |
| 7. Other Special Allowances [Sec-10(14)] |
| 8. Standard Deduction on Salary |
| 9. Professional Tax |
| 10. Interest on Housing Loan |
| 11. Deduction under Chapter VI-A [Sec-80C to 80U except Sec-80CCD(2) i.e. Investment in notified pension Scheme] |
2. For An Individual (Resident or NRI and Age of 60 years but below 80 years), HUF, AOP, BOI or AJP :
| Net Annual Income/ Annual Taxable Income ( वार्षिक आय / कमाई ) |
Tax Slab Rate | |
| Old Regime | New Regime (115BAC) | |
| Upto Rs 2,50,000 ( रु 2,50,000 तक ) | Nil | Nil |
| Rs 2,50,001 to 3,00,000 ( रु 2,50,001 से 3,00,000 तक ) | Nil | 5% |
| Rs 3,00,001 to 5,00,000 ( रु 3,00,001 से 5,00,000 तक ) | 5% | 5% |
| Rs 5,00,001 to 7,50,000 ( रु 5,00,001 से 7,50,000 तक) | 20% | 10% |
| Rs 7,50,001 to 10,00,000 ( रु 7,50,001 से 10,00,000 तक ) | 20% | 15% |
| Rs. 10,00,001 to 12,50,000 ( रु 10,00,001 से 12,50,000 तक ) | 30% | 20% |
| Rs. 12,50,001 to 15,00,000 ( रु 12,50,001 से 15,00,000 तक ) | 30% | 25% |
| Above Rs. 15,00,000 ( रु 15,00,000 के ऊपर ) | 30% | 30% |
Additional Components : Surcharge, Cess & Rebate u/s-87A is same as mentioned above for Individuals below 60 years of age.
3. For An Individual (Resident or NRI and Age of 80 years and Above), HUF, AOP, BOI or AJP :
| Net Annual Income/ Annual Taxable Income ( वार्षिक आय / कमाई ) |
Tax Slab Rate | |
| Old Regime | New Regime (115BAC) | |
| Upto Rs 2,50,000 ( रु 2,50,000 तक ) | Nil | Nil |
| Rs 2,50,001 to 5,00,000 ( रु 2,50,001 से 5,00,000 तक ) | Nil | 5% |
| Rs 5,00,001 to 7,50,000 ( रु 5,00,001 से 7,50,000 तक) | 20% | 10% |
| Rs 7,50,001 to 10,00,000 ( रु 7,50,001 से 10,00,000 तक ) | 20% | 15% |
| Rs. 10,00,001 to 12,50,000 ( रु 10,00,001 से 12,50,000 तक ) | 30% | 20% |
| Rs. 12,50,001 to 15,00,000 ( रु 12,50,001 से 15,00,000 तक ) | 30% | 25% |
| Above Rs. 15,00,000 ( रु 15,00,000 के ऊपर ) | 30% | 30% |
Additional Components : Surcharge, Cess & Rebate u/s-87A is same as mentioned above for Individuals below 60 years of age.
4. Income Tax Rate for Partnership Firms/LLP :
A Partnership firm/LLP is taxable at a flat rate of 30%
Plus,
Surcharge:- 12% of tax where total income exceeds Rs. 1 crore.
Health and Education cess: 4% of income tax plus surcharge.
5. Income Tax Rate for Local Authority :
A Local Authority is taxable at a flat rate of 30%
Plus,
Surcharge:- 12% of tax where total income exceeds Rs. 1 crore.
Health and Education cess: 4% of income tax plus surcharge.
6. Income Tax Rate for Co-operative Society :
| Taxable Income | Tax Rate |
| Up to Rs. 10,000 | 10% |
| Rs. 10,000 to 20,000 | 20% |
| Above Rs. 20,000 | 30% |
6.1 Special Rate for Co-operative Society u/s- 115BAD :
| Taxable Income | Tax Rate |
| Any Amount | 22% |
Plus,
Surcharge:- 12% of tax where total income exceeds Rs. 1 crore.
Health and Education cess: 4% of income tax plus surcharge.
Note : If a Co-operative Society Opts for Special rate u/s-115BAD –
(i) No Exemptions/Deductions/Incentives will be allowed.
(ii) Option once exercised can’t be withdrawn subsequently for upcoming Previous Years.
(iii) Such Co-operative society have been kept out of purview of Minimum Alternate Tax (MAT). Also, provision relating to computation, carry forward and set-off of AMT credit shall not apply.
7. Income Tax Rate for Domestic Companies :
| Turnover Particulars | Tax Rate |
| Where its total turnover or gross receipt during the previous year 2018-19 does not exceed Rs. 400 crore | 25% |
| For any other domestic company | 30% |
Additional Components :
Surcharge :
> 7% of income tax where total income is more than Rs. 1 crore but doesn’t exceed Rs. 10 crore.
> 12% of income tax where total income exceeds Rs. 10 crore.
Health and Education Cess : 4% of tax amount plus Surcharge.
7.1 Special Tax Rate for Domestic Companies :
| Turnover Particulars | Tax Rate |
| If the company opted for Section 115BA | 25% |
| If the company opted for Section 115BAA | 22% |
| If the company opted for Section 115BAB | 15% |
Additional Components :
Surcharge : 10% irrespective of amount of total income.
Health and Education Cess : 4% of tax amount plus Surcharge.
Note : If a Domestic Company opts special tax regime :
(i) Under Sec- 115BAA or 115 BAB : Provision of MAT shall not be applicable.
(ii) MAT is applicable for Company opting 115BA.
8. Income Tax Rate for Foreign Companies :
| 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% |
Additional Components :
Surcharge :
> 2% of income tax where total income is more than Rs. 1 crore but doesn’t exceed Rs. 10 crore.
> 5% of income tax where total income exceeds Rs. 10 crore.
Health and Education Cess : 4% of tax amount plus Surcharge.
For your reference :
1. Detail explanation of Section 115BAA:
A. Following conditions need to be satisfied for getting benefit of lower tax rate introduced by Section 115BAA:
a. 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.)
b. Without 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.
c. After claiming depreciation other than additional depreciation u/s 32(1)(iia).
Benefit of lower rate under the aforesaid section can be exercised by the company from any year commencing from AY 2020-21 or onwards. Such option is to be exercised in prescribed manner, before due date of return u/s 139(1) for the year in which option is exercised. Option once exercised would be binding for subsequent years and cannot be withdrawn.
B. Companies availing benefit of lower tax rate under new provisions of sections 115BAA have been Exempted from MAT on book profit under section 115JB
2. Detail explanation of Section 115BAB:
A. Following conditions need to be satisfied for getting 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 upto 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 cylinder;
- Printing of books or production of 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 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 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:
-
- 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 total value of plant and machinery is permissible
- company must not use building previously used as a hotel or a convention Centre.
B. Companies availing benefit of lower tax rate under new provisions of sections 115BAB have been Exempted from MAT on book profit under section 115JB
