CENTRAL GOVERNMENT EMPLOYEES - INCOME TAX
INCOME TAX RATES
ASSESSMENT YEAR 2020-2021
RELEVANT TO FINANCIAL YEAR 2019-2020
The normal tax rates applicable to a resident individual will depend on the age of the individual. However, in case of a non-resident individual the tax rates will be same irrespective of his age.
For the purpose of ascertainment of the applicable tax slab, an individual can be classified as follows:
• Resident individual below the age of 60 years. i.e. born on or after 01-04-1960
• Resident individual of the age of 60 years or above at any time during the year but below the age of 80 years. (i.e. born during 01-04-1940 to 31-03-1960)
• Resident individual of the age of 80 years or above at any time during the year. i.e. born before 01.04.1940
• Non-resident individual irrespective of the age.
I. In case of an Individual (resident or non-resident) or HUF or Association of Person or Body of Individual or any other artificial juridical person
| Taxable Income |
Tax Rate |
| Up to Rs. 2,50,000 |
Nil |
| Rs. 2,50,000 to Rs 5,00,000 |
5% |
| Rs. 5,00,000 to Rs. 10,00,000 |
20% |
| Above Rs. 10,00,000 |
30% |
Less: Rebate under Section 87A [see Note]
Add: Surcharge and Health & Education Cess [see Note]
II. In case of a resident senior citizen (who is 60 years or more at any time during the previous year but less than 80 years on the last day of the previous year)
| Taxable Income |
Tax Rate |
| Up to Rs. 3,00,000 |
Nil |
| Rs. 3,00,000 to Rs 5,00,000 |
5% |
| Rs. 5,00,000 to Rs. 10,00,000 |
20% |
| Above Rs. 10,00,000 |
30% |
Less: Rebate under Section 87A [see Note]
Add: Surcharge and Health & Education Cess [see Note]
| Taxable Income |
Tax Rate |
| Up to Rs. 5,00,000 |
Nil |
| Rs. 5,00,000 to Rs. 10,00,000 |
20% |
| Above Rs. 10,00,000 |
30% |
Add: Surcharge and Health & Education Cess [see Note]
a) SURCHARGE:
Surcharge is levied on the amount of income-tax at
following rates if the total income of an assessee exceeds specified limits:
|
Nature of Income
|
Range of Total Income
|
|
Up to Rs. 50 lakh
|
More than Rs. 50 lakh but up to Rs. 1 crore
|
More than Rs. 1 crore but up to Rs. 2 crore
|
More than Rs. 2 crore but up to Rs. 5 crore
|
More than Rs. 5 crore but up to Rs. 10 crore
|
More than Rs. 10 crore
|
|
Individual, HUF or Artificial Judicial Person
|
|
Short-term capital gain covered under Section 111A
|
Nil
|
10%
|
15%
|
15%
|
15%
|
|
Long-term capital gain covered under Section 112A
|
Nil
|
10%
|
15%
|
15%
|
15%
|
|
Any other income*
|
Nil
|
10%
|
15%
|
25%
|
37%
|
|
* The Finance (No. 2) Act, 2019 has been amended to withdraw the
enhanced surcharge, i.e., 25% or 37%, as the case may be, from income
chargeable to tax under section 111A and 112A. Hence, the maximum rate
of surcharge on tax payable on such incomes shall be 15%. However, where
other income of a person does not exceed Rs. 2 crores but after
including the incomes as referred to in section 111A and 112A, the total
income exceeds Rs. 2 crores then irrespective of the amount of other
income, surcharge shall be levied at the rate of 15% on the amount of
tax payable on both normal income as well as income referred to in
section 111A and 112A.
|
|
AOP or BOI
|
|
Short-term capital gain covered under Section 111A
|
Nil
|
10%
|
15%
|
15%
|
15%
|
|
Long-term capital gain covered under Section 112A
|
Nil
|
10%
|
15%
|
15%
|
15%
|
|
Short term or Long term capital gains on transfer of certain securities
under section 115AD(1)(b)
|
Nil
|
10%
|
15%
|
15%
|
15%
|
|
Any other Income*
|
Nil
|
10%
|
15%
|
25%
|
37%
|
|
* The Finance (No. 2) Act, 2019 has been amended to withdraw the
enhanced surcharge, i.e., 25% or 37%, as the case may be, from income
chargeable to tax under section 111A, 112A and 115AD. Hence, the maximum
rate of surcharge on tax payable on such incomes shall be 15%. However,
where other income of a person does not exceed Rs. 2 crores but after
including the incomes as referred to in section 111A, 112A and 115AD,
the total income exceeds Rs. 2 crores then irrespective of the amount of
other income, surcharge shall be levied at the rate of 15% on the amount
of tax payable on both normal income as well as income referred to in
section 111A, 112A and 115AD.
|
a) The
surcharge shall be subject to marginal relief:
i)
Where income
exceeds Rs. 50 lakhs, the total amount payable as income-tax and surcharge shall
not exceed total amount payable as income-tax on total income of Rs. 50 lakhs by
more than the amount of income that exceeds Rs. 50 lakhs.
ii)
where income
exceeds Rs. 1 crore, the total amount payable as income-tax and surcharge shall
not exceed 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
iii)
where income
exceeds Rs. 2 crore, the total amount payable as income-tax and surcharge shall
not exceed total amount payable as income-tax on total income of Rs. 2 crore by
more than the amount of income that exceeds Rs. 2 crore
iv)
where income
exceeds Rs. 5 crore rupees, the total amount payable as income-tax and surcharge
shall not exceed total amount payable as income-tax on total income of Rs. 5
crore rupees by more than the amount of income that exceeds Rs. 5 crore rupees
b) Health and Education Cess:
The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge.
c) Rebate under Section 87A:
The rebate is available to a resident individual if his total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of income-tax or Rs. 12,500, whichever is less.
PERMANENT ACCOUNT NUMBER (PAN)
Every assessee is required to obtain 10 alpha numeric Permanent Account Number (PAN) and quote the same in his returns, challans & correspondence. PAN can be obtained by applying in new Form No.49A at the designated Service Centres of UTITSL OR NSDL. PAN is essential for processing the Return of Income and for giving credit for taxes paid. If a person who is required to quote his Permanent Account Number fails to do so or intimates false number, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of Rs.10,000.
INCOME TAX PAYMENTS
Advance tax payments and Self-assessment tax payments have to be made in Challan No.280.
# Cost Inflation Index – For Capital Gain
The cost inflation indices for the financial years so far have been notified as under:
| |
|
Financial Year |
Cost Inflation Index |
|
|
| |
|
2001 – 02 |
100 |
|
|
| |
|
2002 – 03 |
105 |
|
|
| |
|
2003 – 04 |
109 |
|
|
| |
|
2004 – 05 |
113 |
|
|
| |
|
2005 – 06 |
117 |
|
|
| |
|
2006 – 07 |
122 |
|
|
| |
|
2007 – 08 |
129 |
|
|
| |
|
2008 – 09 |
137 |
|
|
| |
|
2009 – 10 |
148 |
|
|
| |
|
2010 – 11 |
167 |
|
|
| |
|
2011 – 12 |
184 |
|
|
| |
|
2012 - 13 |
200 |
|
|
| |
|
2013 - 14 |
220 |
|
|
| |
|
2014 - 15 |
240 |
|
|
| |
|
2015 - 16 |
254 |
|
|
| |
|
2016 - 17 |
264 |
|
|
| | | 2017 – 2018 | 272 |
|
|
| | | | |
|
|
# CBIT Notification No. 44/2017 - F.No. 370142/11/2017-TPL dated 05-06-2017
This notification will come into effect on 01-04-2018 and apply to the assessment year 2018-19