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Income Tax Slabs for Domestic Company for AY 2021-22

 

Income Tax Rates

Condition

Income Tax Rate (excluding surcharge and cess)

Turnover or Gross Receipt in the previous year 2018-19 not exceed Rs 400 crores

25%

If opted for Section 115BA

25%

If opted for Section 115BAA

22%

If opted for Section 115BAB

15%

Any other Domestic Company

30%

 

Surcharge

Surcharge is an additional charge levied for persons earning income above the specified limits, it is charged on the amount of income tax calculated as per applicable rates

  • 7% - Taxable income above Rs 1 crore– Up to Rs 10 crore
  • 12% - Taxable income above Rs 10 crore
  • 10% - If Company opting for taxability u/s 115BAA or Section 115BAB

Marginal relief

Marginal relief is a relief from surcharge, provided in cases where the surcharge payable exceeds the additional income that makes the person liable for surcharge. The amount payable as surcharge shall not exceed the amount of income earned exceeding Rs 1 crore and Rs 10 crore respectively.

Health and education cess

Health and education cess @ 4% shall also be paid on the amount of income tax plus surcharge (if any).

Note:

  1. A Company shall be liable to pay Minimum Alternate Tax (MAT) at 15% of book profit (plus surcharge and health and education cess as applicable) where the normal tax liability of the Company is less than 15% of book profit.
  2. A Company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange, MAT shall be payable at 9% (plus cess and surcharge as applicable)
  3. A Company opting for special rate taxation under Section 115BAA and 115BAB are exempt from paying MAT.
  4. The Companies opting for a special rate of taxation u/s 115BAA or 115BAB will not be allowed certain deductions like section 80IA, 80IAB, 80IAC, 80IB, and so on, except deduction u/s 80JJAA and 80M.

 


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TaxGyata Team

TaxGyata Team