Income tax rate for Partnership Firms (registered/ unregistered) including Limited Liability Partnerships (LLPs) in respect of FY 2020-21/ AY 2021-22 is 30%, as per Finance Act, 2020. In addition, Surcharge and Health & Education Cess (HEC), are applicable as under:
i) Surcharge: At the rate of 12% of the amount of income tax, in the cases where total income of the Firm/ LLP exceeds Rs. 1 crore, subject to provisions relating to marginal relief; and
ii) HEC: At the rate of 4% of the aggregate amount of the Income Tax and Surcharge, in all cases.
Alternate Minimum Tax (AMT) at the rate of 18.5% of Adjusted Total Income (ATI) + Surcharge + HEC, shall be applicable u/s 115JC, in case the Firm/ LLP has claimed deduction u/s 80H to 80RRB (except 80P), 35AD and 10AA. However, units located in IFSC deriving income solely from Convertible Foreign Exchange (CFE) can pay AMT 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|