Income Tax Rates for Partnership Firms/ LLPs (AY 2022-23)

As per the Finance Act of 2022, the income tax rate for partnership firms (registered or unregistered), including limited liability partnerships (LLPs), in respect of AY 2022–23 is 30%. In addition, the surcharge, Health & Education Cess (HEC), and Alternate Minimum Tax (AMT) are applicable as follows:

Surcharge Rates for Partnership Firms/ LLPs

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.

HEC Rates for Partnership Firms/ LLPs

In the case of partnership firms and LLPs, the aggregate amount of income tax and surcharge shall be subject to HEC @ 4%.

AMT Rates for Partnership Firms/ LLPs

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 IndividualsEducation Cess Rates
NRIs/ HUFs/ AOP/ BOI/ AJPSurcharge Rates
Partnership Firms and LLPsMarginal Relief from Surcharge
Domestic CompaniesRebate u/s 87A for Individuals
Foreign Companies 
Co-operative Societies 
Local Authorities 

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