Income Tax Rates for Domestic Companies/ Indian Companies in respect of FY 2020-21/ AY 2021-22 is 25% in case the turnover is upto Rs. 400 crore and 30% in case turnover is above Rs. 400 crore, subject to application/ addition of Health & Education Cess and Surcharge, as under:
i) Health & Education Cess @ 4% in all cases; and
ii) Surcharge @ 7% / 12% in cases where total income of the Domestic company is above Rs. 1 crore but below Rs. 10 crore/ above Rs. 10 crore, subject to provisions relating to marginal relief, if applicable.
In other words tax rate is 25% in the case of a domestic manufacturing company having total turnover or gross receipts in the previous year upto Rs. 400 crore, at the option of the company provided it satisfies the conditions contained under section 115BA of the Income-tax Act. However, tax rate shall be 30% in all other cases.
Further, the tax so computed shall attract 7% surcharge where such domestic company has total income above Rs. 1 crore but upto Rs. 10 crore and 12% where total income exceeds Rs. 10 crore, subject to provisions of marginal relief from surcharge under Income Tax. Also, the amount of tax plus surcharge so calculated shall attract 4% ‘Health & Education Cess’.
It may be noted that a domestic Company means an Indian company or any other company which, has made the prescribed arrangements for the declaration and payment within India of the dividends (including dividends on preference shares) out of its income liable to income-tax under the Income-tax Act.
Tax liability computed as above is subject to MAT provisions, except in the case of companies opting for Section 115BA.
|Income Tax Slabs/ Rates:||Income Tax Cess, Surcharge & Rebate|
|Resident Individuals||Education Cess Rates|
|NRIs/ HUFs/ AOP/ BOI/ AJP||Surcharge Rates|
|Partnership Firms and LLPs||Marginal Relief from Surcharge|
|Domestic Companies||Rebate u/s 87A for Individuals|