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Income Tax rate for Financial Year April 2020 to March 2021

May 26, 2021

Income tax rate for individuals below 60 years of age

Net Income Rate of Tax 
Up to Rs. 2,50,000 Nil 
Rs. 2,50,001 to Rs. 5,00,000 5% 
Rs. 5,00,001 to Rs. 10,00,000 20% 
Above Rs. 10,00,000 30% 

Income tax rate for individuals above 60 years & below 80 years of age

Net Income Rate of Tax
Up to Rs. 3,00,000 Nil
Rs. 3,00,001 to Rs. 5,00,000 5%
Rs. 5,00,001 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

Income tax rate for individuals above 80 years of age

Net Income Rate of Tax
Up to Rs. 5,00,000  Nil
Rs. 5,00,001 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30% 

Surcharge: Surcharge is applicable on the amount of income tax calculated as per below rate: 

IncomeSurcharge Rate
Rs. 50 Lakhs to Rs. 1 Crore 10%
Rs. 1 Crore to Rs. 2 Crores 15%
Rs. 2 Crores to Rs. 5 Crores 25%
Rs. 5 crores to Rs. 10 Crores 37%
Above Rs. 10 Crores 37%
Health and Education Cess: Health and Education Cess is applicable at the rate of 4% on the amount of income-tax plus surcharge. 

Income tax rate for HUF, AOP, BOI, Other Artificial Juridical Person

Net Income Rate of Tax
Up to Rs. 2,50,000 Nil
Rs. 2,50,001 to Rs. 5,00,000 5%
Rs. 5,00,001 to Rs. 10,00,000 20%
Above Rs. 10,00,00030%
Surcharge & Health and Education Cess is applicable at the same rate given for individuals above. 

Below Special Income tax rate for Individual & HUF shall be available. if the total income is computed without claiming specified exemptions or deductions:

Net Income Rate of Tax
Up to Rs. 2,50,000 Nil
Rs. 2,50,001 to Rs. 5,00,000 5%
Rs. 5,00,001 to Rs. 7,50,000 10%
Rs. 7,50,001 to Rs. 10,00,000 15%
Rs. 10,00,001 to Rs. 12,50,000 20% 
Rs. 12,50,001 to Rs. 15,00,000 25% 
Above Rs. 15,00,000 30% 
Surcharge & Health and Education Cess is applicable at the same rate given for individuals above. 

Rebate u/s 87A: For Individuals having Net taxable income below or equal to Rs 5 lakh tax liability will be nil. 

Income Tax Rates for Domestic Company:

Turnover Criteria Rate of Tax 
Turnover or gross receipt of the company is less than Rs. 400 crores in the financial year 2018-19. 25% 
Other domestic company 30% 
Surcharge applicable on income tax: 
IncomeSurcharge Rate 
Rs. 1 Crore to Rs. 10 Crores 7% 
Above Rs. 10 Crores 12% 
Health and Education Cess: Health and Education Cess is applicable at the rate of 4% on the amount of income-tax plus surcharge. 

Special Income Tax Rates for Domestic Company:

ParticularsRate of Tax 
Where company opts for Section 115BAB (not covered in section 115BA and 115BAA & is registered on or after October 1, 2019 and has commenced manufacturing on or before 31st March, 2023) 15% 
Where company opts for Section 115BAA (wherein the total income of a company has been calculated without claiming specified deductions, incentives, exemptions and additional depreciation) 22% 
Where company opts for Section 115BA (registered on or after March 1, 2016 and engaged in manufacture of any article or thing and does not claim deduction as specified in the section clause) 25% 

Surchargeapplicable on income tax: 

IncomeSurcharge Rate
Rs. 1 Crore to Rs. 10 Crores 7%
Above Rs. 10 Crores 12%
Company opting for section 115BAA and 115BAB 10%

Income Tax Rates for Partnership Firm or Limited Liability Partnership: 

Rate of tax for Partnership Firm or Limited Liability Partnership is 30%. 

Surcharge applicable on income tax is 12% if total income exceeds 1 Crore. 

Health and Education Cess is applicable at the rate of 4% on the amount of income tax plus surcharge. 

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