income tax rates fy 2019-20

Income Tax Rates – AY 2020-21 (FY 2019-20)

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Last Updated on September 5, 2020 by Ravi Sankar Robbi

Income Tax Rates – AY 2020-21 (FY 2019-20)

Income tax rates for computation of tax liability of various assessees i.e. Individuals, HUF, Firms (including LLP), Companies, Co-operative societies, AOP, BOI & Artificial Juridical Person for AY 2020-21 (i.e. FY 2019-20) is given below for ready reference:

1. Income Tax Rates for Individuals for FY 2019-20 (AY 2020-21)

(a) Individuals (Residents or Non-Residents) age is below 60 years

For Individuals who are either Resident or Non-Resident & whose age is below 60 years at any time during the FY 2019-20

Total Income*Income Tax
Upto Rs. 2,50,000Nil
Exceeds Rs. 2,50,000 but not exceeding Rs. 5,00,0005% on the amount exceeding Rs. 2,50,000
Exceeds Rs. 5,00,000 but not exceeding Rs. 10,00,000Rs. 12,500 + 20% on the amount exceeding Rs. 5,00,000
Exceeding Rs. 10,00,000Rs. 1,12,500 + 30% on the amount exceeding Rs. 10,00,000
*Total Income = Gross Total Income – Deductions from Sec 80C to 80U

(b) For Resident Senior Citizens

For Resident Individuals whose age is 60 years or more but below 80 years at any time during the FY 2019-20

Total IncomeIncome Tax
Upto Rs. 3,00,000Nil
Exceeding Rs. 3,00,000 but not exceeding Rs. 5,00,0005% on the amount exceeding Rs. 3,00,000
Exceeding Rs. 5,00,000 but not exceeding Rs. 10,00,000Rs. 10,000 + 20% on the amount exceeding Rs. 5,00,000
Exceeding Rs. 10,00,000Rs. 1,10,000 + 30% on the amount exceeding Rs. 10,00,000

This slab is NOT applicable to “Non-Resident Senior Citizens“. For them, slab rates specified in category (a) is applicable.

(c) For Resident Super Senior Citizens

For Resident Individuals whose age is 80 years or more at any time during the FY 2019-20

Total IncomeIncome Tax
Upto Rs. 5,00,000Nil
Exceeding Rs. 5,00,000 but not exceeding Rs. 10,00,00020% on the amount exceeding Rs. 5,00,000
Exceeding Rs. 10,00,000Rs. 1,00,000 + 30% on the amount exceeding Rs. 10,00,000

This slab is NOT applicable to “Non-Resident Super Senior Citizens“. For them, slab rates specified in category (a) is applicable.

Point to Remember 1:

For Non-Resident Individuals (either Senior Citizens or Super Senior Citizens) basic exemption limit is ONLY Rs. 2,50,000. Higher exemption limit of Rs. 3,00,000 or Rs. 5,00,000 is NOT applicable for them.

Surcharge:

Total IncomeSurcharge
Exceeds Rs. 50,00,000 but does not exceed Rs. 1 crore10% of Income Tax
Exceeds Rs. Rs. 1 crore but does not exceed Rs. 2 crore15% of Income Tax
Exceeds Rs. 2 crore but does not exceed Rs. 5 crore25% of Income Tax
Exceeds Rs. 5 crore37% of Income Tax

Marginal Relief:

When surcharge is applicable, then individual can claim marginal relief (which is a kind of deduction from surcharge) which is as follows:

Total IncomeMarginal Relief
Exceeds Rs. 50,00,000 Total income tax including surcharge on such income shall not exceed the amount of income tax payable on total income of Rs. 50,00,000 by more than the amount of income that exceeds Rs. 50,00,000
Exceeds Rs. Rs. 1 crore Total income tax including surcharge on such income shall not exceed the amount of income tax payable on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore
Exceeds Rs. 2 crore Total income tax including surcharge on such income shall not exceed the amount of income tax payable on total income of Rs. 2 crore by more than the amount of income that exceeds Rs. 2 crore
Exceeds Rs. 5 croreTotal income tax including surcharge on such income shall not exceed the amount of income tax payable on total income of Rs. 5 crore by more than the amount of income that exceeds Rs. 5 crore

Rebate u/s 87A: Resident Individuals whose total income does not exceed Rs. 5,00,000 are eligible to claim rebate. Rebate available under sec 87A is 100% of income tax or Rs. 12,500 whichever is less.

That means, if you are Resident Individual and your net income (i.e. Gross Total Income less deductions from Sec 80C to 80U) is less than or equal to Rs. 5,00,000 then your tax liability for FY 2019-20 is zero.

Point to Remember 2:

If Surcharge is applicable then Marginal relief is also applicable. In such cases, rebate u/s 87A is NOT applicable. Similarly, when rebate u/s 87A is applicable then Surcharge and Marginal relief are NOT applicable.

Health & Education Cess: 4% of Income Tax and Surcharge

income-tax-rate-chart-for-individuals-fy-2019-20-ay-2020-21

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2. Income Tax Rates for HUF, Association of Persons, Body of Individuals and any other Artificial Juridical Person for FY 2019-20 (AY 2020-21)

Total IncomeIncome Tax
Upto Rs. 2,50,000Nil
Exceeds Rs. 2,50,000 but not exceeding Rs. 5,00,0005% on the amount exceeding Rs. 2,50,000
Exceeds Rs. 5,00,000 but not exceeding Rs. 10,00,000Rs. 12,500 + 20% on the amount exceeding Rs. 5,00,000
Exceeding Rs. 10,00,000Rs. 1,12,500 + 30% on the amount exceeding Rs. 10,00,000

Surcharge:

Total IncomeSurcharge
Exceeds Rs. 50,00,000 but does not exceed Rs. 1 crore10% of Income Tax
Exceeds Rs. Rs. 1 crore but does not exceed Rs. 2 crore15% of Income Tax
Exceeds Rs. 2 crore but does not exceed Rs. 5 crore25% of Income Tax
Exceeds Rs. 5 crore37% of Income Tax

Marginal Relief:

When surcharge is applicable, then assessee can claim marginal relief (which is a kind of deduction from surcharge) which is as follows:

Total IncomeMarginal Relief
Exceeds Rs. 50,00,000Total income tax including surcharge on such income shall not exceed the amount of income tax payable on total income of Rs. 50,00,000 by more than the amount of income that exceeds Rs. 50,00,000
Exceeds Rs. Rs. 1 croreTotal income tax including surcharge on such income shall not exceed the amount of income tax payable on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore
Exceeds Rs. 2 croreTotal income tax including surcharge on such income shall not exceed the amount of income tax payable on total income of Rs. 2 crore by more than the amount of income that exceeds Rs. 2 crore
Exceeds Rs. 5 croreTotal income tax including surcharge on such income shall not exceed the amount of income tax payable on total income of Rs. 5 crore by more than the amount of income that exceeds Rs. 5 crore

Health & Education Cess: 4% of Income Tax and Surcharge

3. Income Tax Rates for Partnership Firms (including LLP) for FY 2019-20 (AY 2020-21)

Entire Income is taxable @30% without any basic exemption limits.

Surcharge: 12% of income tax, if total income exceeds Rs. 1 Crore

Marginal Relief:

When surcharge is applicable, then partnership firm or LLP can claim marginal relief (which is a kind of deduction from surcharge) which is as follows:

If total income exceeds Rs. 1 crore, total income tax including surcharge on such income shall not exceed the amount of income tax payable on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore

Health & Education Cess: 4% of Income Tax and Surcharge

4. Income Tax Rates for Companies FY 2019-20 (AY 2020-21)

(a) Domestic Companies

ParticularsIncome Tax
Companies whose gross receipts or turnover does not exceed Rs. 400 crore in PY 2017-1825%
If company opts for section 115BA25%
If company opts for section 115BAA22%
If company opts for section 115BAB15%
Any other company 30%

Surcharge:

Total IncomeSurcharge
Exceeds Rs. 1 crore but does not exceed Rs. 10 crore7%
Exceeds Rs. 10 crore12%

Note: If Company opts for taxation either under Section 115BAA or Section 115BAB, surcharge is 10% on income tax irrespective of total income.

Marginal Relief:

When surcharge is applicable, then domestic companies can claim marginal relief (which is a kind of deduction from surcharge) which is as follows:

Total IncomeMarginal Relief
Exceeds Rs. 1 croreTotal income tax including surcharge on such income shall not exceed the amount of income tax payable on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore
Exceeds Rs. 10 croreTotal income tax including surcharge on such income shall not exceed the amount of income tax payable on total income of Rs. 10 crore by more than the amount of income that exceeds Rs. 10 crore

Health & Education Cess: 4% of Income Tax and Surcharge

(b) Foreign Companies

Nature of IncomeIncome Tax
Royalty received from Government or an Indian concern or Fees for rendering technical services (in either case agreement should be approved by Central Govt)50%
Any other income40%

Surcharge:

Total IncomeSurcharge
Exceeds Rs. 1 crore but does not exceed Rs. 10 crore2%
Exceeds Rs. 10 crore5%

Marginal Relief:

When surcharge is applicable, then foreign companies can claim marginal relief (which is a kind of deduction from surcharge) which is as follows:

Total IncomeMarginal Relief
Exceeds Rs. 1 croreTotal income tax including surcharge on such income shall not exceed the amount of income tax payable on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore
Exceeds Rs. 10 croreTotal income tax including surcharge on such income shall not exceed the amount of income tax payable on total income of Rs. 10 crore by more than the amount of income that exceeds Rs. 10 crore

Health & Education Cess: 4% of Income Tax and Surcharge

5. Income Tax Rates for Co-operative Societies FY 2019-20 (AY 2020-21)

Total IncomeTax rate
Upto Rs. 10,00010%
Exceeding Rs. 10,000 to Rs. 20,000Rs. 1,000 + 20% on the amount exceeding Rs. 10,000
Exceeding Rs. 20,000Rs. 3,000 + 30% on the amount exceeding Rs. 20,000

Surcharge: 12% of income tax, if total income exceeds Rs. 1 Crore

Marginal Relief:

When surcharge is applicable, then co-operative society can claim marginal relief (which is a kind of deduction from surcharge) which is as follows:

If total income exceeds Rs. 1 crore, total income tax including surcharge on such income shall not exceed the amount of income tax payable on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore

Health & Education Cess: 4% of Income Tax and Surcharge

6. Income Tax Rates for Local Authorities for FY 2019-20 (AY 2020-21)

Entire Income is taxable @30% without any basic exemption limits.

Surcharge: 12% of income tax, if total income exceeds Rs. 1 Crore

Marginal Relief:

When surcharge is applicable, then local authority can claim marginal relief (which is a kind of deduction from surcharge) which is as follows:

If total income exceeds Rs. 1 crore, total income tax including surcharge on such income shall not exceed the amount of income tax payable on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore

Health & Education Cess: 4% of Income Tax and Surcharge

Also read: TDS rate chart FY 2019-20

(Disclaimer: All the content in the article is for general information only. Any advice or suggestion by the author should not be construed as legal opinion)

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