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Income Tax Rates / Tax Slabs (FY : 2019-2020 - AY-2020-2021)

1. Rates of Income Tax in case of Individual Assessee for Assessment Year 2020-21

A- Individual resident in India age below  60 years

Upto ₹2,50,000

Nil 

₹2,50,010 to  ₹5,00,000 

5%

₹5,00,010 to  ₹10,00,000 

20% 

Above ₹10,00,000

30%

B- Individual resident in India age  60 years or more but less than  80 years

Up to ₹3,00,000

Nil

₹3,00,010 to  ₹5,00,000

5%

₹5,00,010 to  ₹10,00,000 

20%

Above ₹10,00,000

30%

C- Individual resident in India age  80 years  or more

Upto ₹5,00,000

Nil

₹5,00,010 to  ₹10,00,000 

20%

Above ₹10,00,000

30%

The exemption limit in case of an individual (whether male or female) who is of the age of 60 years and above  but who is non-resident in India is ₹2,50,000 instead of ₹3,00,000 or ₹5,00,000 as the case may be. 

Surcharge  For Assessment Year 2020-21

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:

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:

'Health and Education Cess (H&EC)  on Income Tax' @ 4% on income tax (inclusive of surcharge, wherever applicable) shall be levied.

2. Rates of Income Tax in case of Firm including LLP (Limited Liability Partnership) for Assessment Year 2020-21

Normal Rate of Tax

30%

Surcharge:

The amount of income-tax shall be increased by a surcharge at the rate of 12% of  such income-tax in case of a firm having a total income exceeding ₹1 crore. 

Marginal Relief:

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:

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. Rates of Income Tax in case of a Domestic Company for Assessment Year 2020-21

(i) Where the total turnover or gross receipts in the previous year 2017-  18 does not exceed ₹ 400 crore

25%

(ii) Certain domestic companies referred to in section 115BA

25%

(iii) Domestic company opting to pay tax under section 115BAA

22%

(iv) Domestic company which has been set-up and registered on or after  1.10.2019, and the commenced manufacturing on or before the  31.3.2023 and opting to pay tax under section 115BAB

15%

(v) In all other cases

30%

4. Rates of Income Tax in case of a Foreign Company for Assessment Year 2020-21

Normal Rate of Tax

40%

Surcharge in case of Domestic Company other than covered u/s 115BAA or 115BAB:

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. 

Surcharge in case of a Domestic Company opting to pay tax under  Section 115BAA or 115BAB

10% of the tax irrespective of  the amount of taxable income 

Marginal relief in case of a Domestic Company except which has opted to pay Tax as per  Section 115BAA or 115BAB:

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. 

Surcharge in case of a Foreign Company:

Where the total income of a foreign company exceeds  ₹1 crore but does not ₹10 crore a surcharge of 2% of tax shall be levied. 
Where the total income of the domestic company exceeds ₹10 crore a surcharge at the rate of 5%  of tax shall be levied. 

Health and Education Cess: 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. Rebate of maximum ₹12,500 for Resident Individuals having total income up to ₹5,00,000  [Section 87A] 

Rebate from the tax payable by an assessee shall be allowed for A.Y. 2020-21, if the following  condition and satisfied: 

(1) The assessee is an Individual 

(2) He is Resident in India, 

(3) 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.
 
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Income Tax Rates / Tax Slabs (AY-2018-2019 & 2019-2020)
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Tax Rates applicable under Sections 115-O and 115QA during A.Y. 2019-20
Tax Rates for Tax Collection at Source ( TCS) U/s 206C during the A.Y. 2019-20
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Tax on Income distributed by UTI / Mutual Fund under section 115R during A.Y. 2019-20
Tax Holiday - FREE TRADE ZONE (FTZ)[ Section 10A]
Tax Holiday : SPECIAL ECONOMIC ZONE [ SECTION 10AA]
Tax Holiday : 100% EXPORT ORIENTED UNDERTAKINS( 100% E.O.U.) [Section-10B]
Tax Holiday : INCOME FROM EXPORT OF ARTISTIC HANDMADE Wooden Articles[Section-10BA]
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