Surcharge Rates on Income Tax: FY 2020-21/ AY 2021-22

Surcharge on Income Tax is payable if taxable income of a taxpayers exceeds a specified threshold limit during the FY 2020-21/ AY 2021-22, i.e. Rs. 50 Lacs in the case of Individuals, HUF, AOP, BOI, AJP and Rs. 1 Crore in the case of Companies, Firms, Co-operative Societies, Local Authorities, etc.

Further, different surcharge rates are applicable for different type of persons/ taxpayers, like Individuals, HUF, AOP, BOI, AJP, Firms, Co-op. Societies, Local Authorities, Domestic or Foreign Companies, etc.

For Individuals, HUFs, Association of Persons (AOPs), Body of Individuals (BOIs) and Artificial Juridicial Persons (AJPs)

Rates of Surcharge on Income Tax applicable in the case of Individuals (irrespective of residential status or age), HUFs, Association of Persons (AOPs), Body of Individuals (BOIs) and Artificial Juridicial Persons (AJPs), for FY 2020-21/ AY 2021-22, are as under:

Taxable IncomeIncome Tax Surcharge Rate 
Upto Rs. 50 Lacs0%
Above Rs. 50 Lacs but upto Rs. 1 Crore10%
Above Rs. 1 Crore but upto Rs. 2 Crore15%
Above Rs. 2 Crore but upto Rs. 5 Crore25%
Above Rs. 5 Crore37%

In other words, the amount of income-tax for such individual assessees shall attract 10%, 15%, 25% & 37% surcharge in case total income exceeds Rs. 50 lacs, Rs. 1 Crore, Rs. 2 Crore & Rs. 5 Crore respectively. However, marginal relief from Income Tax Surcharge shall be available.

Further, the amount of income-tax plus surcharge shall attract 4% ‘Health and Education Cess’. It may be noted that no marginal relief shall be available in respect of the amount of Health and Education Cess.

For Firms, Co-operative Societies and Local Authorities

Rates of Surcharge on Income Tax applicable in the case of Partnership Firms (including LLPs), Co-operative Societies and Local Authorities, for FY 2020-21/ AY 2021-22, are as under:

Taxable IncomeIncome Tax Surcharge Rate
Upto Rs. 1 Crore0%
Above Rs. 1 Crore12%

In other words, the amount of income-tax for Firms/ Co-op. Societies/ Local Authorities shall attract 12% surcharge in case total income exceeds Rs. 100 lacs. However, marginal relief from Income Tax Surcharge shall be available.

Further, the amount of income-tax plus surcharge shall attract 4% ‘Health and Education Cess’. However, no marginal relief shall be available in respect of the Health and Education Cess.

For Domestic Companies

Rates of Surcharge on Income Tax, applicable in the case of Domestic Companies, for FY 2020-21/ AY 2021-22, are as under:

Taxable IncomeIncome Tax Surcharge Rate
Upto Rs. 1 Crore0%
Above Rs. 1 Crore but upto Rs. 10 Crore7%
Above Rs. 10 Crore12%

In other words, the amount of income-tax for domestic companies shall attract 7% surcharge in case total income exceeds Rs. 1 crore but upto Rs. 10 crore and 12% surcharge in case income exceeds Rs. 10 crore. However, marginal relief from Income Tax Surcharge shall be available.

Further, the amount of income-tax plus surcharge shall attract 4% ‘Health and Education Cess’. However, no marginal relief shall be available in respect of the Health and Education Cess.

For Foreign Companies

Rates of Surcharge on Income Tax, applicable in the case of Foreign Companies, for FY 2020-21/ AY 2021-22, are as under:

Taxable IncomeIncome Tax Surcharge Rate
Upto Rs. 1 Crore0%
Above Rs. 1 Crore but upto Rs. 10 Crore2%
Above Rs. 10 Crore5%

In other words, the amount of income-tax for foreign companies shall attract 2% surcharge in case total income exceeds Rs. 1 crore but upto Rs. 10 crore and 5% surcharge in case income exceeds Rs. 10 crore. However, marginal relief from Income Tax Surcharge shall be available.

Further, the amount of income-tax plus surcharge shall attract 4% ‘Health and Education Cess’. However, no marginal relief shall be available in respect of the Health and Education Cess.

Related Posts:

Income Tax Slabs/ Rates:Income Tax Cess, Surcharge & Rebate
Resident IndividualsEducation Cess Rates
NRIs/ HUFs/ AOP/ BOI/ AJPSurcharge Rates
Partnership Firms and LLPsMarginal Relief from Surcharge
Domestic CompaniesRebate u/s 87A for Individuals
Foreign Companies 
Co-operative Societies 
Local Authorities 

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