1. |
Income Tax Rates
Option A
For Individuals, Hindu Undivided Family, Association of Persons, Body of
Individuals and Artificial juridical persons |
|
Total Income |
Tax Rates |
Up to Rs. 2,50,000 (a)(b) |
NIL |
Rs. 2,50,001 to Rs. 5,00,000(d)(e) |
5% |
Rs. 5,00,001 to Rs. 10,00,000(d) |
20% |
Rs. 10,00,001 and above(c)(d) |
30% |
|
|
|
|
(a) In case of a resident individual of the age of 60 years or above but below 80 years, the basic exemption limit is Rs. 300,000.
(b) In case of a resident individual of age of 80 years or above, the basic exemption limit is Rs 500,000.
(c) Rate of surcharge
. 37% on base tax where specified income exceeds Rs. 5 crore;
. 25% where specified income exceeds Rs. 2 crore but does not exceed Rs. 5 crore
. 15% where total income exceeds Rs. 1 crore but does not exceed Rs. 2 crore; and
. 10% where total income exceeds Rs 50 lakhs but does not exceed Rs. 1 crore.
Specified income - Total income excluding income under the provisions of section 111A and 112A of the Act.
Marginal relief for such person is available.
(d) Health and Education cess @ 4% on aggregate of base tax and surcharge.
(e) Individuals having total income not exceeding Rs. 500,000 can avail rebate of lower of actual tax liability or Rs. 12,500 .
|
|
|
|
Option B
For Individuals and Hindu Undivided Family
|
|
Total Income |
Tax Rates |
Up to Rs. 2,50,000 (a)(b)(d) |
NIL |
Rs. 2,50,001 to Rs. 5,00,000(d)(e) |
5% |
Rs. 5,00,001 to Rs. 7,50,000(d) |
10% |
Rs. 7,50,001 to 10,00,000 |
15% |
Rs. 10,00,001 to 12,50,000 |
20% |
Rs. 12,50,001 to 15,00,000 |
25% |
Rs. 15,00,001 and above |
30% |
For adopting Option B, most of the deductions/exemptions such as section 80C, 80D, etc. are to be foregone. The aforesaid regime is optional. Accordingly, Individuals and
HUFs have the option to be taxed under either of the options. Option B once exercised can be changed in subsequent years (not applicable for business income). |
|
|
|
|
|
2. |
Securities Transaction Tax (STT)
STT is levied on the value of taxable securities transactions as under. |
|
Transaction |
Rates |
Payable By |
Purchase/Sale of equity shares (delivery based) |
0.1% |
Purchaser/Seller |
Purchase of units of equity oriented mutual fund |
Nil |
Purchaser |
Sale of units of equity oriented mutual fund 0.001% Seller (delivery based) |
0.001% |
Seller |
Sale of equity shares, units of equity oriented mutual fund (non-delivery based) |
0.025% |
Seller |
Sale of a option in securities |
0.05%* |
Seller |
Sale of an option in securities, where option is exercised |
0.125% |
Purchaser |
Sale of a futures in securities |
0.01% |
Seller |
Sale or surrender or redemption of a unit of an equity oriented fund to an insurance company, on maturity or partial
withdrawal, with respect to unit linked insurance policy issued by such insurance company on or after the first day
of February, 2021 |
0.001% |
Seller |
Sale of units of an equity oriented fund to the Mutual Fund |
0.001% |
Seller |
Sale of unlisted equity shares and units of business trust under an initial offer |
0.2% |
Seller |
|
|
|
|
|
3. |
Special rates for non-residents as per domestic provisions
(1) The following incomes in the case of non-resident are taxed at special rates on gross basis: |
|
Transation |
Rates (a) |
Dividend |
20% |
Interest received on loans given in foreign 20%
currency to Indian concern or Government of India (not being interest referred to in section 194LB or section 194LC) |
20% |
Income received in respect of units purchased in 20%
foreign currency of specifies Mutual Funds / UTI |
20% |
Royalty or fees for technical services(b) |
10% |
Interest income from a notified infrastructure 5% debt fund, specified loan agreement and specified long-term bonds |
5% |
Interest on FCCB, Dividend on GDRs |
10% |
|
|
|
|
(a) These rates will further increase by applicable surcharge and education cess.
(b) In case the non-resident has a Permanent Establishment (PE) in India and the royalty/ fees for technical services paid is effectively connected with such PE, the same is taxable at 40% (plus applicable surcharge and health and education cess) on net basis.
(c) Interest payable to a non-resident in respect of monies borrowed by any Indian company or business trust from a source outside India by way of issue of rupee denominated bond during the period 17 September 2018 to 31 March 2019 is exempt from tax. |
|
|
|
(2) Tax on non-resident sportsmen or sports association on specified income @ 20% plus applicable surcharge and education cess. |
|
|
|
|
4. |
Capital Gains rates applicable to unit holders as per domestic provisions |
|
Transaction |
Short-term capital gains tax rates (a) |
Long-term capital gains tax rates (a)(b) |
Sale transactions of equity shares / unit of an equity oriented fund which attract STT |
15% |
10% |
Sale transaction other than mentioned above: |
Individuals (resident and non-residents) |
Progressive slab rates |
20% / 10% (b) |
Firms |
30% |
Resident Companies |
30% /25%(d)/22%(e)/15%(f) |
Overseas financial organisations specified in section 115AB |
40% (corporate) 30% (non corporate) |
10% |
FIIs |
30% |
10% |
Other Foreign companies |
40% |
20% / 10% (c) |
Local authority |
30% |
20%
/ 10% |
Co-operative society rates |
Progressive slab or 20% |
|
|
* Income-tax at the rate of 10% to be levied on long-term capital gains exceeding Rs. 1 lakh (without indexation benefit and foreign exchange fluctuation)
(a) These rates will further increase by applicable surcharge & health and education cess.
(b) Income-tax rate of 20% with indexation and 10% without indexation.
(c) Long term capital gains arising to a non-resident from transfer of unlisted securities or shares of a company, not being a company in which the public are substantially interested, subject to 10 per cent tax (without benefit of indexation and foreign currency fluctuation.
(d) If total turnover or gross receipts in the financial year 2019-20 does not exceed Rs. 400 crores.
(e) This lower rate is optional and subject to fulfillment of certain conditions as provided in section 115BAA.
(f) This lower rate is optional for companies engaged in manufacturing business (set-up & registered on or after 1 October 2019) subject to fulfillment of certain conditions as
provided in section 115BAB.
(g) Co-operative societies have the option to be taxed at progressive slab rates or 20%
subject to fulfillment of certain conditions as provided in section 115BAD.
|
|
|
5. |
Personal Tax Scenarios (Amount in Rupees) |
Individual |
Total Income |
475,000 |
825,000 |
1,000,000 |
1,200,000 |
1,500,000 |
5,650,000 |
11,150,000 |
21,150,000 # |
51,150,000 # |
Tax in FY 2020-21 (Option A)* |
NIL*** |
49,400 |
85,800 |
132,600 |
226,200 |
1,673,100 |
3,722,550 |
7,946,250 |
21,532,290 |
Tax in FY 2020-21 (Option B) ** |
NIL*** |
50,700 |
78,000 |
119,600 |
195,000 |
1,638,780 |
3,686,670 |
7,907,250 |
21,489,546 |
Additional Tax burden/ (Savings) in Option B |
- |
1,300 |
(7,800) |
(13,000) |
(31,200) |
(34,320) |
(35,880) |
(39,000) |
(42,744) |
Additional Tax burden/ (Savings) (%) in Option B |
- |
2.63% |
(9.09%) |
(9.80%) |
(13.79%) |
(2.05%) |
(0.96%) |
(0.49%) |
(0.20%) |
|
|
|
Resident senior citizen (age of 60 years but below 80 years) |
Total Income |
475,000 |
825,000 |
1,000,000 |
1,200,000 |
1,500,000 |
5,650,000 |
11,150,000 |
21,150,000 # |
51,150,000 # |
Tax in FY 2020-21 (Option A) * |
NIL*** |
46,800 |
83,200 |
130,000 |
223,600 |
1,670,240 |
3,719,560 |
7,943,000 |
21,528,728 |
Tax in FY 2020-21 (Option B) ** |
NIL*** |
50,700 |
78,000 |
119,600 |
195,000 |
1,638,780 |
3,686,670 |
7,907,250 |
21,489,546 |
Additional Tax burden/ (Savings) in Option B |
- |
3,900 |
(5,200) |
(10,400) |
(28,600) |
(31,460) |
(32,890) |
(35,750) |
(39,182) |
Additional Tax burden/ (Savings) (%) in Option B |
- |
8.33% |
(6.25%) |
(8.00%) |
(12.79%) |
(1.88%) |
(0.88%) |
(0.45%) |
(0.18%) |
|
Resident senior citizen (age 80 years and above) |
Total Income |
475,000 |
825,000 |
1,000,000 |
1,200,000 |
1,500,000 |
5,650,000 |
11,150,000 |
21,150,000 # |
51,150,000 # |
Tax in FY 2020-21 (Option A) * |
NIL*** |
36,400 |
72,800 |
119,600 |
213,200 |
1,658,800 |
3,707,600 |
7,930,000 |
21,514,480 |
Tax in FY 2020-21 (Option B) ** |
NIL*** |
50,700 |
78,000 |
119,600 |
195,000 |
1,638,780 |
3,686,670 |
7,907,250 |
21,489,546 |
Additional Tax burden/ (Savings) in Option B |
- |
14,300 |
5,200 |
- |
(18,200) |
(20,020) |
(20,930) |
(22,750) |
(24,934) |
Additional Tax burden/ (Savings) (%) in Option B |
- |
39.29% |
7.14% |
- |
(8.54%) |
(1.21%) |
(0.56%) |
(0.29%) |
(0.12%) |
* For purpose of tax calculation under Option A, ad hoc deduction of INR 150,000 has been claimed. The ad hoc deduction is only illustrative in nature. Basis actual deduction, the tax amount will vary.
** For purpose of tax calculation under Option B, no exemption/ deductions have been claimed.
*** NIL tax on account of rebate under section 87A.
# If the said taxable income includes capital gains under section 111A and section 112A of the Act, then enhanced surcharge of 37% and 25% would not be applicable and accordingly effective tax rate would be lower. |
|
|
|