Income tax rates for companies other than domestic companies (i.e. foreign companies) in respect of FY 2020-21/ AY 2021-22, as per the Finance Act, 2020, are as under:
|Nature of Income||Income Tax Rate|
|Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after 31/03/1961, but before 01/04/1976, or fees for rendering technical services in pursuance of an agreement made after 29/02/1964 but before 01/04/1976 and where such agreement has, in either case, been approved by the Central Government||50%|
|Any other income||40%|
In other words, in the case of a company other than a domestic company, royalties received from Government or an Indian concern under an approved agreement made after 31/03/1961 but before 01/04/1976, shall be taxed at 50%.
Similarly, fees for technical services received by such company from Government or Indian concern under an approved agreement made after 29/02/1964 but before 01/04/1976 shall be taxed at 50%.
On the balance of the total income of such company, the tax rate shall be 40%.
In addition, Surcharge and Health & Education Cess (HEC), are applicable as under:
a) Surcharge: At the rate of 2% where total income of such company exceeds Rs. 1 Crore but is upto Rs. 10 Crores and at the rate of 5% where total income of such company exceeds Rs. 10 Crore, subject to provisions relating to marginal relief.
b) HEC: At the rate of 4% of the aggregate amount of the Income Tax and Surcharge, in all cases.
|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|