Rates of Income Tax

A. Normal Rates

1. Tax Rates for Individuals/HUF/AOP/BOI

Notes:

1. * Threshold limit for a resident individual who is of the age of 60 years or more but less than 80 years will be ₹3,00,000/- and for a resident individual who is of the age of 80 years or more will be ₹5,00,000/-
2. Rebate up to ₹5,000/- from tax if taxable income is below ₹5,00,000/-, to a residential individual.
3. Marginal relief available.

Notes:

1. * Threshold limit for a resident individual who is of the age of 60 years or more but less than 80 years will be ₹3,00,000/- and for a resident individual who is of the age of 80 years or more will be ₹5,00,000/-.
2. Rebate upto ₹2,500/- from tax if taxable income is below ₹3,50,000/-, to a resident individual
3. Marginal relief available.

2. Tax Rates for Firms (including Limited Liability Partnership)

Notes:

1. Marginal relief available.

3. Tax Rates for Domestic Companies

Notes:

1. Marginal relief available.

(a) Tax Rates for companies where turnover or gross receipts in previous year 2014-15 does not exceed ₹ 5 crores

(b) Tax Rates for new domestic companies engaged in manufacturing/production subject to certain conditions.

Conditions:

1. The company has been set up and registered on or after 1st March, 2016.
2. The company is engaged in the business of manufacture or production of an article or thing and not engaged in any other business.
3. The company has not claimed any benefit of
   • Section 10AA
   • Accelerated depreciation
   • Additional depreciation
   • Investment allowance
   • Expenditure on Scientific research
   • Any deduction in respect of certain income under Part C of Chapter VIA excluding section 80JJAA.
4. The option is furnished in prescribed manner before due for furnishing the return of income.

(c) Tax Rates for companies where turnover or gross receipts in previous year 2015-16 does not exceed ₹ 50 crores

Marginal Relief available in all the above cases.

4. Tax Rates for foreign companies (on income other than Royalty and Fees for Technical Services)

Notes:

1. Surcharge @ 2% if total income is above ₹1,00,00,000/- and up to ₹10,00,00,000/- and @ 5% if total income above ₹ 10,00,00,000/-.
2. Marginal relief available.

5. Dividend Distribution Tax (A.Y. 2017-18 & 2018-19)

Note:

1. Parent company will be allowed set off of dividend received from its subsidiary in computing its dividend distribution tax subject to certain conditions.

6. Income Distribution Tax for Mutual Fund & Securitisation of Trust

Notes:

1. Marginal relief available.

7. Co-operative Society (A.Ys. 2017-18 & 2018-19)

Notes:

1. Marginal relief available.

B. Special Rates

1. Long Term Capital Gains

1. On Equity shares and units
   Long term capital gains arising on transfer of equity shares on a recognised stock exchange in India or units of an equity oriented Mutual Fund (if more than 65% of total proceeds of the fund are invested in equity shares), and on which Securities Transaction Tax is chargeable.
   For all assessees Nil – Exempt under section 10(38).
2. On other assets and equity shares, units except falling in (a) above

Notes:

1. In case of Resident Individual and HUF, where tax liability arises only because of the inclusion of long term capital gains, tax to be levied at 20% or 10% as the case may be, on the excess over the minimum exemption limit.
2. No deduction under Chapter VIA (80C to 80U).

2. Short Term Capital Gains

1. On Equity shares and units
   Short term capital gains arising on transfer of equity shares on recognised stock exchange in India or units of an Equity Oriented Mutual Fund (if more than 65% of total proceeds of the fund are invested in equity shares), and on which Securities Transaction Tax is chargeable.

Notes:

1. In case resident individual and HUF, relief from STCG available in respect of the amount by which the taxable income other than STCG, falls short of Basic Exemption Limit.
2. No Deduction under Chapter VI-A (80C to 80U).

b.

3. Minimum Alternate Tax payable by Companies – As a percentage of Book Profit

Note:

1. MAT Credit allowed to be carried forward for set off for fifteen years.

4. Alternate Minimum Tax (AMT)

Notes:

1. AMT credit allowed to be carried forward for set off for 15 years

5. Advance Tax

No advance tax to be paid by senior citizen if he/she does not have income under head "Profit and Gains of Business or Profession".

*MAT also subject to Advance Tax. Refer Circular No. 13 of 2001, [252 ITR (St) 52]

**AMT also subject to Advance tax.