The rates of income tax, surcharge, HEC and AMT, applicable in the case of local authorities in India in respect of AY 2023-24, are as follows:
Income Tax Rates
A flat rate of 30% income tax is applicable for the local authorities (LA) in India in respect of AY 2023-24, after excluding the amount of exempt income under Section 10(20).
Surcharge Rates
The amount of income tax so computed or as computed under the provisions of Sections 111A, 112 or 112A of the Income Tax Act shall be increased by a surcharge of 12% of such income tax in the case of a local authority having a total income exceeding Rs 1 crore, subject to provisions relating to marginal relief, if any.
Health & Education Cess (HEC) Rates
The aggregate amount of Income Tax and Surcharge, shall be subject to HEC @ 4%, in the case of every local authority.
Alternate Minimum Tax (AMT) Rates
AMT shall be applicable u/s 115JC at 18.5% of adjusted total income (ATI) + surcharge + HEC in cases where the local authority has claimed deductions u/s 80H to 80RRB (except 80P), 35AD, and 10AA. However, in respect of units of local authorities located in IFSC deriving income solely from convertible foreign exchange (CFE), AMT can be paid at the concessional rate of 9% (instead of 18.5%) + surcharge + HEC.
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