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Is the Total Income (Income after deductions) of resident INDIVIDUAL less than Rs 5 Lakhs?

If YES, No Tax Payable for Resident Individual. Eligible for full tax rebate u/s 87A. And if No, Then tax rates are as follows-

  • The Surcharge shall be subject to Marginal Relief
  • Higher Rate of Surcharge i.e. 25% & 37% shall not apply on capital gains arising on sale of equity share in a company or a unit of an equity oriented fund or a unit of a business trust liable for securities transaction tax

Partnership Firm & LLP & Local Authority 

Domestic Company

Exemptions or Deductions that need to be foregone for claiming lower rate of tax-

Income Tax slab rates for AY 2020-21

• 10AA [SEZ units],

• 32(1)(iia) [additional depreciation qua new plant and machinery @ 20%/ 30%],

• 32AD [15% on new assets in undertaking set up in specified backward areas in Andhra Pradesh, Bihar, Telangana, and West Bengal]

• 33AB [specified percentage of amounts deposited with Tea/ Coffee/ Rubber Board]

• 33ABA [specified percentage of amounts deposited in Site Restoration Account]

• 35(1)(ii)/(iia), 35(2AA) or 35(2AB) [specified deduction for scientific research]

• 35AD [expenditure on specified business]

• 35CCC [expenditure on agricultural extension project]

• 35CCD [expenditure on skill development project]

• Part C of Chapter VIA except section 80JJAA or 80LA or 80M of the Act (such as 80IA/IB/IC/ID/IE etc.)

• set-off of any brought forward losses to the extent such loss relates to deductions mentioned above. Such losses would also not be allowed to be carried forward to subsequent years.

 
 

* subjected to Marginal Relief

Foreign Company 


&
*Subject to Marginal Relief


 

Published by

Simran Saria
(Chartered Accountant)
Category Income Tax   Report

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