A flat Income tax rate of 30% is applicable in the case of Local Authorities, in respect of FY 2020-21/ AY 2021-22, as per Finance Act, 2020. In addition, Surcharge and Health & Education Cess (HEC), are applicable as under:
i) Surcharge: At the rate of 12% of the amount of income tax, in the cases where total income of the Local Authority exceeds Rs. 1 crore, subject to provisions relating to marginal relief; and
ii) HEC: At the rate of 4% of the aggregate amount of the Income Tax and Surcharge, in all cases.
Alternate Minimum Tax (AMT) at the rate of 18.5% of Adjusted Total Income (ATI) + Surcharge + HEC, shall be applicable u/s 115JC, in case the Local Authority has claimed deduction u/s 80H to 80RRB (except 80P), 35AD and 10AA. However, units located in IFSC deriving income solely from Convertible Foreign Exchange (CFE) can pay AMT at the concessional rate of 9% (instead of 18.5%) + Surcharge + HEC.
Related Posts:
| 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 |
| Foreign Companies | |
| Co-operative Societies | |
| Local Authorities |