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, Health & Education Cess (HEC) and Alternate Minimum Tax (AMT), are applicable as under:
In the cases where total income of a Partnership Firm/ LLP 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)
Alternate Minimum Tax (AMT) shall be applicable u/s 115JC @ 18.5% of Adjusted Total Income (ATI) + Surcharge + HEC, in case the Partnership Firm/ LLP has claimed deduction u/s 80H to 80RRB (except 80P), 35AD and 10AA. However, in respect of units of Firms/ LLPs 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|