Income Tax slab for AY 2021-22 | FY 2020-21

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Income Tax slab for AY 2021-22/Income Tax calculation:- In India, income is calculated on the basis of different parameters like in case of individual assessee income is calculated on the basis of his age group and for other personal income is calculated as per their status under Income Tax Act.

In budget 2020, FM Smt. Nirmala Sitharaman has announced a new tax regime giving taxpayers an option to pay taxes as per the new tax slab from FY 2020-21 onward. Here in this post, we are discussing the Income Tax slab for AY 2021-22 | FY 2020-21 of individual, HUF, Partnership firm, Local Authority, Co-operative society, and Foreign/domestic company.

1. Income Tax slab rates for Individual and HUF AY 2021-22 | FY 2020-21

New Tax Regime for individual and HUF- A new tax regime for Individual and HUF has been proposed by the Finance bill, 2020, under this tax will be charged at a lower tax rate if they agree to forgo prescribes deduction and exemption under the Income-tax Act. Here we have created a table to show new tax rates applicable for Individual and HUF from FY 2020-21- (For this he needs to forgo deductions and exemption under the ACT. )

Tax slab for individual (below age of 60 years) and HUF

Income Tax slab Income Tax rate for individual (Age below 60 years) & HUF– New Scheme
upto Rs. 250000 NIL- No Tax
Rs. 250001 to Rs. 500000 5 %
Rs. 500001 to Rs. 750000 10%
Rs. 750001 to Rs. 1000000 15%
Rs. 1000001 to Rs. 1250000 20%
Rs. 1250001 to Rs. 1500000 25%
Above Rs. 1500000 30%

Note 1:- A tax rebate under section 87A is allowed to individual taxpayers for a maximum amount of Rs. 12500 if his total income is upto Rs. 500000 for FY 2020-21

Note 2:- Surcharge is additional on the amount of Income tax as follow-

  • 10% of Income Tax where total income exceeds Rs. 50 Lakhs.
  • 15% of Income Tax where total income exceeds Rs. 1 Crore.
  • 25% of Income Tax where total income exceeds Rs. 2 Crore.
  • 37% of Income Tax where total income exceeds Rs. 5 Crore.

Note 3:- An additional 4% health & education cess will be applicable on the tax amount + surcharge as calculated above.

Note 4:- If any individual/HUF wants to take the benefit of exemption and deductions then the slab rate of AY 2020-21 will be applicable.

🎯 Income Tax Slab For AY 2021-22 For Senior Citizens as per Old and New Regime

2. Income Tax slab rates for Partnership firm AY 2021-22 | FY 2020-21

Tax rate:- For Partnership firm (Including LLP) Income tax rate is flat 30%

Surcharge:- It will be 12% of taxable income if net income exceeds Rs. 1 crore. (Surcharge will be subject to marginal relief)

Health and Education cess:- It will be 4% of Income Tax + Surcharge

3. Income Tax slab rates for Local Authority AY 2021-22 | FY 2020-21

For Local Authoriy Income tax rate is flat 30%

Health and Education cess:- It will be 4% of Income Tax + Surcharge

Surcharge:- It will be 12% of taxable income if net income exceed Rs. 1 crore. (Surcharge will be subject to marginal relief)

4. Income Tax slab rates for Co-operative society AY 2021-22 | FY 2020-21

From AY 2020-21 Income of Co-operative society is taxable as per the choice of Old regime or a new regime of tax. Under the new regime, the rate of tax is flat 22% provides its forgoes specified deduction and exemption under the Act.

New Tax rate- for co-operative society Income tax rate is flat 22%

Health and Education cess:- It will be 4% of Income Tax + Surcharge

Surcharge:- It will be 10% of taxable income if net income exceeds Rs. 1 crore. (Surcharge will be subject to marginal relief)

5. Income Tax slab rates for Companies AY 2021-22 | FY 2020-21

Tax slab for Domestic Company AY 2021-22 | FY 2020-21

Particulars Tax Rates
where companies total turnover or gross receipts during the previous year 2018-19 does not exceed Rs. 400 crore 25%
Where company opt for section 115BA 25%
Where company opt for section 115BAA 22%
Where company opt for section 115BAB 15%
All other domestic company 30%

Health and Education cess:- It will be 4% of Income Tax + Surcharge

Surcharge:- It will be 7% of taxable income if net income exceeds Rs. 1 crore but below Rs. 10 crores and if income exceeds Rs. 10 crore, a surcharge will be 12%. (Surcharge will be subject to marginal relief)

Tax slab for Foreign Company AY 2021-22 | FY 2020-21

Particulars Tax Rates
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%

Health and Education cess:- It will be 4% of Income Tax + Surcharge

Surcharge:- It will be 2% of taxable income if net income exceeds Rs. 1 crore but below Rs. 10 crores and if income exceeds Rs. 10 crore, a surcharge will be 5%. (Surcharge will be subject to marginal relief)

Compiled by- CA Chirag Agarwal

(Practicing Chartered Accountant)


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