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