Article explains Income Tax Rate For A.Y. 2019-20 Company, Minimum Alternate Tax for Assessment year 2019-20, Income Tax Rate For A.Y. 2019-20 for Co-operative Society and Special Tax Rates Under Chapter XII.
|Domestic Company||Rate of income tax|
|Total turnover or gross receipt for F.Y. 2016-17 < Rs. 250 crore||25%|
|Total turnover or gross receipt for F.Y. 2016-17 > Rs. 250 crore||30%|
|[A](i) Income from Royalty from Government/ Indian concern in pursuance of an agreement (Approved by the Central Government) made by it with the Indian concern between 01.04.1961 to 31.03.1976||50%|
|(ii) Income from fees for technical services rendered in pursuance of an agreement approved by Central Government made after February 29, 1964 but before April 01, 1976.||50%|
|[B] Other income of foreign company||40%|
|If net income
does not exceeds
Rs. 1 crore
|If net income
exceeds Rs. 1crore
but does not
exceed Rs. 10 crore
|If net income
exceeds Rs. 10
Marginal relief — Total income exceeding Rs. 1 crore but not
exceeding Rs. 10 crore, 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.
* * Marginal relief — Total income exceeding Rs. 10 crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs. 10 crore more than the amount of income that exceeds Rs. 10 crore.
Health & Education cess — @4 % of (income-tax and surcharge).
Period of carried forward of MAT credit has now been increased from 10 years to 15 years in Finance Act 2017. The following rate of Minimum Alternate Tax shall be applicable:
|If book profit does not exceed Rs. 1 crore||If book profit is in the
range of Rs. 1 crore – Rs. 10 crore
|If book profit exceeds Rs. 10 crore|
|Domestic Company||Foreign Company||Domestic
|Domestic Company||Foreign Company|
|Total Income||Tax Rate|
|ii.||Rs. 10,000/- to Rs. 20,000/-||Rs. 1,000/- + 20% on income in excess of 210,000/-|
|iii.||Above Rs. 20,000/- amount||Rs. 3,000/- + 30% on income in excess of 220,000/-|
♦ Local authorities are taxable at the rate of 30 per cent.
♦ Surcharge: @12% of tax where total income > Rs. 1 crore. (Subject to marginal relief)
♦ Health & Education Cess: @4% of (Income Tax & Surcharge).
SPECIAL TAX RATES UNDER CHAPTER XII
|Section||Applicable To||Particulars of Income||Rate|
|111A||All Categories of Tax Payers||Short Term Capital Gain arising on transfer of equity share, equity oriented fund, unit of a business trust on or after 01.04.2005 which have been charged to Security Transaction Tax.||15%|
|112||All Taxpayers except Non-residents||Capital Gain arising on transfer of Long Term Capital Assets||20%|
|112||Non- residents||Capital Gain arising on transfer of Long Tenn Capital Assets:
(i) In case the long term capital asset
(ii) Otherwise LTCG is chargeable at
|112A||All categories of Tax payers||w.e.f. 01.04.2019. Capital Gain arising on transfer of Long Term Capital Assets (being equity share, equity oriented fund, unit of a business trust upon which Security Transaction T. is paid) if it exceeds Rs. one lakh, then it is taxable at||10%|
|(i) Dividend [other than dividend referred in Section 115(0)]||20%|
|(ii) Interest received from Govt. of
India/Indian Concern in foreign currency
|(iii) Interest received from Infrastructure
Debt Fund referred in Section 10(47)
|(iv) Interest on money borrowed in foreign currency by an Indian Company or the business trust||5%|
|(v) Distributed Income being interest
received by a unit holder from a business trust specified in section 10(23FC) or (FCA) of the Income Tax Act
|(vi) Income received in respect of units purchased in foreign currency, of a Mutual Fund specified ufs 10(23D) or UTI||20%|
|(vii) Royalty/Fees for Tech. Services (other than as specified u/s 44DA(1) received from Govt. of India/ Indian concern in pursuance of an agreement||10%|
(i) No deduction, expenditure or allowance is allowed u/s 28 to 44C and 57 of the Income T.Act, 1961.
(ii) The person Is not required to file return of income if total income consists of only incomes stated above and correct TDS is made on such income.
|1158||All categories of Tax Payer.||Profit 8 Gain arsing from life Insurance business.||12.50%|
|115BB||All categories of Tax payers||Income from winning of lottery, crossword puzzle, race, horse race, card or Other games, gambling/betting of any nature||30%|
|115 BBE||All categories of Tax payers||Income referred to in Sec 68,59,69A,698, 69C and 696 declared in retum of income or added bythe Assessing Officer
Note: No deduction, expenditure, allowance, set off of loss is allowed on such income
|115BBG||All categories of Tax payers||Income by way of transfer of “Carbon Credit”
Note: No deduction in respect of any expenditure or allowance is allowed while computing such income
|Foreign Institutional Investors
|(i) Income from securities, (other than dividend refereed u/s 115-0)||@20%
Note: (@5% on interest income referred u/s 194LD)
|(ii ) Short term and long term capital gain
arising on transfer of such securities
|Short term capital gain@ 30% Long term capital gain @ 10%|
|(iii) Long term capital gain on transfer of asset referred in section 112A||@10% on income exceeding Rs. 1 lakh|
(i) No deduction u/s 28 to 44C, 57(1), and (ill) or chapter VIA is allowed on income from securities
(ii) No benefit of
|Domestic company, which is
(i) registered after 28.02.2018,
(ii) engaged in manufacture, production, research and distribution of any article.
(iii) The total income has been computed as mentioned In 115BA(2)(c).
(i) An option needs to be exercised in the prescribed manner (fond 10-IB) along with return of Income.
(ii) Applicable with effect from 01.04.2017
|115BBD||Indian Company||Divided received from a foreign company in which the Indian company holds 26% or more in nominal value of equity share capital
Note: No other deduction under Income tax Act is allowable