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 the Finance Act, 2020.
In addition, Surcharge, Health & Education Cess (HEC) and Alternate Minimum Tax (AMT), are applicable as under:
In the cases where total income of the Local Authority exceeds Rs. 1 crore, the surcharge @ 12% of the amount of income tax shall be applicable, subject to provisions relating to marginal relief; if any.
The aggregate amount of Income Tax and Surcharge, shall be subject to HEC @ 4%, in all cases.
Alternate Minimum Tax (AMT) shall be applicable u/s 115JC @ 18.5% of Adjusted Total Income (ATI) + Surcharge + HEC, in case the Local Authority has claimed deduction 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.
|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|