Rate of Income Tax For Companies & Firms -FY 2019-20 (AY 2020-21)
Rules of Income Tax Act are subjected to periodical revisions and the rates undergo changes. Different tax rates are stipulated for various categories of taxpayers and for different sources of income. The rates of income tax applicable for the Financial Year 2019-20 (Assessment Year 2020-21) for partnership firms including Limited Liability Partnership (LLPs), Companies, Co-operative Societies and Local Authorities are covered in this article. The rates applicable for resident individuals, senior citizens, Hindu Undivided Family (HUF), Association of Persons (AOP), Body of Individuals (BOI) or any other artificial judicial persons are covered in Rates of Income Tax – FY 2019-20 (AY 2020-21).
Rates of Income Tax For FY 2019-20 (AY 2020-21) –Partnership Firms including LLPs
A partnership firm including Limited Liability Partnership (LLP) Firm is taxable at the rate of 30%. Surcharge of 12% is applicable where the income exceeds Rs. 1 Crore. 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 (4%) of such income-tax and surcharge.
Rates of Income Tax FY 2019-20 (AY 2020-21)- Companies
Rates of income tax differ for domestic companies and foreign companies. Domestic company means an Indian company, or any other company which, in respect of its income liable to tax under this Act, makes the prescribed arrangements for the declaration and payment, within India, of the dividends (including dividends on preference shares) payable out of such income. A foreign company is a company that is not a domestic company.
Rates of Income Tax For Domestic Companies
|
Domestic companies whose total turnover or gross income in the previous year did not exceed Rs. 250 Crore |
25% |
|
Other domestic companies |
30% |
Rates of Income Tax For Foreign Companies
Foreign companies are taxable at the rate of 40%
Surcharge applicable for companies is as shown below:
|
Company |
Net Income |
|
|
|
Between Rs. 1 Cr- Rs. 10 Cr |
Exceeds Rs. 10 Cr |
|
Domestic |
7% |
12% |
|
Foreign |
2% |
5% |
Health and Educational Cess of 4% will be applicable on tax and surcharge in both cases.
Rates of Income Tax FY 2019-20 (AY 2020-21)- Co-operative Societies
|
Net Income Range |
Income Tax Rate |
|
Upto Rs. 10,000 |
10% |
|
Rs. 10,000 to Rs. 20,000 |
20% |
|
Above Rs. 20,000 |
30% |
Surcharge of 12% applicable where total income exceeds Rs. 1 Crore. Health and Educational Cess is payable at the rate of 4% on tax and surcharge.
Rates of Income Tax FY 2019-20 (AY 2020-21)- Local Authorities
A local authority is taxable at the rate of 30% with a surcharge of 12% on tax when the total income exceeds Rs. 1 Crore. Applicable Health and Educational cess is 4% of tax and surcharge.
