Income Tax Amendment For Assessment Year 2020-2021 : PART-1
Tax Rates in case of an Individual/HUF/AOP/BOI
Individual (resident or non-resident) or HUF or Association of Person or Body of Individual or any other artificial juridical person
Assessment Year 2019-20
Taxable Income | Tax Rate |
Up to Rs. 2,50,000 | Nil |
Rs. 2,50,000 to Rs 5,00,000 | 5% |
Rs. 5,00,000 to Rs. 10,00,000 | 20% |
Above Rs. 10,00,000 | 30% |
Less: Rebate under Section 87A [see Note]
Add: Health and Education Cess [see Note]
Assessment Year 2020-21
Taxable Income | Tax Rate |
Up to Rs. 2,50,000 | Nil |
Rs. 2,50,000 to Rs 5,00,000 | 5% |
Rs. 5,00,000 to Rs. 10,00,000 | 20% |
Above Rs. 10,00,000 | 30% |
Less: Rebate under Section 87A [see Note]
Add: Surcharge and Health & Education Cess [see Note]
Rebate under Section 87A:
Assessment Year 2019-20
The rebate is available to a resident individual if his total income does not exceed Rs. 3, 50,000. The amount of rebate shall be 100% of income-tax or Rs. 2,500, whichever is less.
Assessment Year 2020-21
The rebate is available to a resident individual if his total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of income-tax or Rs. 12,500, whichever is less.
Health and Education Cess:
Assessment Year 2019-20
The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.
Assessment Year 2020-21
The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge.
Surcharge
Assessment Year 2019-20
Surcharge is levied on the amount of income-tax at the following rates if total income of an assessee exceeds specified limits:
Nature of Income | Range of income | ||
Up to Rs. 50 lakh | More than Rs. 50 lakh but up to Rs. 1 crore | More than Rs. 1 crore | |
Any Income | Nil | 10% | 15% |
The surcharge shall be subject to marginal relief:
- Where income exceeds Rs. 50 lakhs, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 50 lakhs by more than the amount of income that exceeds Rs. 50 lakhs.
- Where income exceeds Rs. 1 crore, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
Assessment Year 2020-21
Surcharge is levied on the amount of income-tax at following rates if the total income of an assessee exceeds specified limits:
Nature of Income | Range of Total Income | |||||
Up to Rs. 50 lakh | More than Rs. 50 lakh but up to Rs. 1 crore | More than Rs. 1 crore but up to Rs. 2 crore | More than Rs. 2 crore but up to Rs. 5 crore | More than Rs. 5 crore but up to Rs. 10 crore | More than Rs. 10 crore | |
Individual, HUF or Artificial Judicial Person | ||||||
Short-term capital gain covered under Section 111A | Nil | 10% | 15% | 15% | 15% | 15% |
Long-term capital gain covered under Section 112A | Nil | 10% | 15% | 15% | 15% | 15% |
Any other income* | Nil | 10% | 15% | 25% | 37% | 37% |
* The Finance (No. 2) Act, 2019 has been amended to withdraw the enhanced surcharge, i.e., 25% or 37%, as the case may be, from income chargeable to tax under section 111A and 112A. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%. However, where other income of a person does not exceed Rs. 2 crores but after including the incomes as referred to in section 111A and 112A, the total income exceeds Rs. 2 crores then irrespective of the amount of other income, surcharge shall be levied at the rate of 15% on the amount of tax payable on both normal income as well as income referred to in section 111A and 112A. |
The surcharge shall be subject to marginal relief:
-
- Where income exceeds Rs. 50 lakhs, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 50 lakhs by more than the amount of income that exceeds Rs. 50 lakhs.
- Where income exceeds Rs. 1 crore, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
- Where income exceeds Rs. 2 crore, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 2 crore by more than the amount of income that exceeds Rs. 2 crore.
- Where income exceeds Rs. 5 crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 5 crore rupees by more than the amount of income that exceeds Rs. 5 crore rupees.
AOP or BOI | ||||||
Short-term capital gain covered under Section 111A | Nil | 10% | 15% | 15% | 15% | 15% |
Long-term capital gain covered under Section 112A | Nil | 10% | 15% | 15% | 15% | 15% |
Short term or Long term capital gains on transfer of certain securities under section 115AD(1)(b) | Nil | 10% | 15% | 15% | 15% | 15% |
Any other Income* | Nil | 10% | 15% | 25% | 37% | 37% |
* The Finance (No. 2) Act, 2019 has been amended to withdraw the enhanced surcharge, i.e., 25% or 37%, as the case may be, from income chargeable to tax under section 111A, 112A and 115AD. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%. However, where other income of a person does not exceed Rs. 2 crores but after including the incomes as referred to in section 111A, 112A and 115AD, the total income exceeds Rs. 2 crores then irrespective of the amount of other income, surcharge shall be levied at the rate of 15% on the amount of tax payable on both normal income as well as income referred to in section 111A, 112A and 115AD. |
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