BASIC CONCEPTS

I n d i v i d u a l /H U F /A O P /B O I / Tax rate on Firm/Local Authority Surcharge

Artificial juridical person 1)Individual/HUF/AOP/BOI/Artificial juridical person Special note for Section 115BAB Income of Any Individual (Sec.115BAC) Optional Slab
👇
In case of individual upto 60 Flat rate - 30% Upto ₹ 50 Lacs = Nil
years of age > ₹50 Lacs but upto ₹1 crore = 10% of Tax Total Income Tax rate
👉 Following business are not eligible for section 115BAB
Company > ₹ 1 crore but upto ₹2 crore = 15% of Tax -Printing of Books Upto ₹2,50,000 - Nil
Total Income Tax rate Domestic company/Indian company > ₹ 2 crore but upto ₹5 crore = 25% of Tax -Production of Films ₹2,50,000 - 5,00,000 - 5%
Upto 2,50,000 nil :Registered office in india and ? ₹5 crore = 37% of Tax -Mining ₹5,00,000 – 7,50,000 - 10%
250000-500000 5% registered under companies act Note: Surcharge rate of 25% and 37% is not applicable on : -Development of computer software ₹7,50,000 - 10,00,000 - 15%
5,00,000 -10,00,000 20% Or Company which made STCG u/s 111A, LTCG u/s 112A, LTCG u/s 112 and -Conversion of Marble blocks into Slabs ₹10,00,000-12,50,000 - 20%
Above 10,00,000 30% arrangement for paying dividend Dividend Income -Bottling of gas into cylinder ₹12,50,000 -15,00,000 - 25%
from income taxable in India If Total income exceed ₹2 crore or 5 crore is due to Above ₹15,00,000 - 30%
In case of individual 60 or above CG and dividend income, then surcharge rate on tax 👉 15% Tax rate is applicable only on Manufacturing business income
60 years of age (Senior citizen) on other Income will be 👉 Other general rate income (House property, Other sources etc.) is
If turnover is/gross receipt is upto 400 taxable @22% on gross basis [Without deduction of any Expenditure]
crores in py 20-21 = 25% 👉If Other income upto 2 crore = 15%
Total Income Tax rate 👉 Option once exercised u/s 115BAA, 115BAB, 115BAD cannot be
Upto 3,00,000 Nil
Other case = 30% 👉If Other income >₹2 cr but upto ₹5 cr = 25% withdrawn.
3,00,000-5,00,000 5% 2) Firm/Local Authority
Foreign company /Other than domestic
5,00,000 -10,00,000 20% If total income :- Following benefits/deductions will not
company = 40% Following benefits/deductions will not be available u/s 115BAA/115BAB/
Above 10,00,000 30% Upto 1 crore = Nil , Above 1 crore = 12% of Tax be available u/s 115BAC
115BAD
In case of individual 80 or above 80 Cooperative Society = Slab rate -Sec.10AA SEZ
3) Company : - -Section 10AA : SEZ
years of age (Super Senior citizen) -Salary allowance exemption (except
Total Income Tax Rate Domestic: If the total income is -Additional depreciation
travelling, daily conveyance Allowance)
Upto 10,000 10% Upto ₹ 1 crore = Nil -Sec.33AB and 33ABA
Total Income Tax Rate -Leave travel concession
Upto 5,00,000 Nil >10,000 but upto 20,000 20% Above ₹ 1 crore but upto 10 crore = 7% of Tax -Sec.35 : Scientific research
-Salary deduction u/s 16
5,00,000-10,00,000 20% >20,000 30% Above ₹ 10 crore = 12% of Tax -Sec.35AD : Specified business
-Interest deduction on self occupied
Above 10,00,000 30% -Sec.35CCC: Agriculture project
House property
Marginal Relief: When Tax exceed Foreign: If the total income is -Sec. 35CCD: Skill development project
Income due to Surcharge -Additional depreciation
Section- 87A Upto ₹ 1 crore = Nil -Chapter VI-A Deduction (Except Se. 80JJAA and 80M
Steps for calculation of Marginal relief:- -Sec.33AB & 33ABA
Rebate to residential Individual Above ₹ 1 crore but upto 10 crore = 2% of Tax -Sec.35 Scientific research
→ If Total Income does not Step-1 Calculate Tax on Original Total Above ₹ 10 crore = 5% of Tax -Sec.35AD : Specified business
exceed ₹500000 Income
Step-2 Calculate Tax Surcharge limits in Health and Education cess = @4% Optional : -Sec.35CCC : Agriculture project
Rebate will be :- -Deduction under chapter VI-A (except
✓ ₹12500 or respective case Compulsory : 👉Sec.115BAA: Income of domestic company = 22+10+4%= 26.164%
Special Sec.111A = STCG on certain Assets= 15% Sec.80CCD(2) and 80JJAA)
✓ Tax amount Step-3 Tax to be paid= Step 2 + Extra 👉Sec. 115BAB: Income of New domestic manufacturing company/
(whichever is Lower) Income Rates Sec.112A = LTCG on certain Assets = upto Electricity generation company
Note : Above rebate is not Step-4Marginal Relief = Step 1(Original 1 Lac exempt, excess taxable @10% 👉Company set up on or after 1.10.19 and not formed by splitting up or
available for capital gain u/s Tax) – Step 3 (Tax to be Paid) Sec 112 = LTCG on other Assets = 20% reconstruction of existing business →Tax rate = 15+10+4% = 17.16%
112A Maximum Marginal Rate: 42.744% Sec.115BB = Lottery/Winning etc. = 30% 👉Sec.115BAD: Income of Resident Co-op society=22+10+4%= 25.168%