The normal tax rates for AY 2020-21 applicable to a resident individual will depend on the age of the individual. However, in case of a non-resident individual the tax rates will be same irrespective of his age.
For the purpose of ascertainment of the applicable tax slab, an individual can be classified as follows:
A. Resident individual below the age of 60 years.
B. Resident individual of the age of 60 years or above at any time during the year but below the age of 80 years.
C. Resident individual of the age of 80 years or above at any time during the year.
D. Non-resident individual irrespective of the age.
Normal tax rates applicable to a resident individual below the age of 60 years i.e. born on or after 1.4.1958
Up to Rs. 2,50,000 = Nil Nil
Rs. 2,50,000 - Rs. 5,00,000 - 5% of (total income minus Rs. 2,50,000)
Rs. 5,00,000 - Rs. 10,00,000 - Rs. 12,500 + 20% of (total income minus Rs. 5,00,000)
Above Rs. 10,00,000 - Rs. 1,12,500 + 30% of (total income minus Rs. 10,00,000)
Surcharge is levied on the amount of income-tax if total income of an assessee exceeds specified limits.
However, marginal relief is available from surcharge in following manner -
a) in case where net income exceeds Rs. 50 lakh but doesn’t exceed Rs. 1 Crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income tax
on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs.
b) in case where net income exceeds Rs. 1 crore but doesn’t exceed Rs. 2 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
c) in case where net income exceeds Rs. 2 crore but doesn’t exceed Rs. 5 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 2 crore by more than the amount of income that exceeds Rs. 2 crore.
d) in case where net income exceeds Rs. 5 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 5 crore by more than the amount of income that exceeds Rs. 5 crore.
Health and Education Cess: Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge.
AMT : In the case of a non-corporate taxpayer to whom the provisions of Alternate Minimum Tax (AMT) applies, tax payable cannot be less than 18.5% (+HEC) of "adjusted total income"
computed as per section 115JC.
However, w.e.f. Assessment Year 2019-20, In case of a unit located in an IFSC which derives its income solely in convertible foreign exchange, the rate of AMT under section 115JF shall be at the rate of 9% instead of existing rate of 18.50%.
A resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 12,500, whichever is less.
Normal tax rates applicable to a resident individual of the age of 60 years or above at any time during the year but below the age of 80 years -
Up to Rs. 3,00,000 - Nil Nil
Rs. 3,00,000 - Rs. 5,00,000 - 5% of (total income minus Rs.
3,00,000)
Rs. 5,00,000 - Rs. 10,00,000 - Rs. 10,000 + 20% of (total income
minus Rs. 5,00,000)
Above Rs. 10,00,000 - Rs. 1,10,000 + 30% of (total income minus Rs. 10,00,000)
Normal tax rates applicable to a resident individual of the age of 80 years or above at any time during the year -
Up to Rs. 5,00,000 - Nil Nil
Rs. 5,00,000 - Rs. 10,00,000 - 20% of (total income minus Rs.
5,00,000)
Above Rs. 10,00,000 - Rs. 1,00,000 + 30% of (total income minus Rs. 10,00,000)
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