As per the Finance Act of 2022, the income tax rate applicable for the partnership firms (registered or unregistered) and limited liability partnerships (LLPs) in India, is 30% in respect of AY 2022-23.
In addition, the surcharge, Health & Education Cess (HEC), and Alternate Minimum Tax (AMT) are applicable as follows:
Surcharge Rates
In cases where the total income of a partnership firm or LLP exceeds Rs. 1 crore, the surcharge of 12% of the amount of income tax shall be applicable, subject to provisions relating to marginal relief, if any.
Higher Education Cess (HEC) Rates
In the case of partnership firms and LLPs, the aggregate amount of income tax and surcharge shall be subject to HEC @ 4%.
Alternate Minimum Tax (AMT) Rates
The alternate minimum tax (AMT) shall be applicable u/s 115JC at 18.5% of adjusted total income (ATI) + surcharge + HEC in cases where the partnership firm or LLP has claimed deductions u/s 80H to 80RRB (except 80P), 35AD, and 10AA. However, in respect of units of firms or LLPs located in the 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.
Related Posts: >> Finance Act, 2022 <<
| 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 |
| Foreign Companies | |
| Co-operative Societies | |
| Local Authorities |