Income Tax Rates FY 2021-2022 (AY 2022-2023) for:

  • Companies
  • Partnership
  • Limited Liability Partnership
  • Co-operative Societies
  • Foreign Companies 

Income Tax Act has given an option to Domestic Companies & Co-operative Societies to continue the normal income tax slab rates or go for special rates of tax for FY. 2021-2022.

In the following, we have explained all Tax Rates for FY 2021-2022:

     

    What are the Income Tax Slab Rates for Companies for FY 2021-22?

    Income Tax Rate: Companies, Partnership Firm, LLP (FY 2021-2022)

    Domestic Companies (Normal Tax Rates)

    (a) If gross turnover upto Rs.400 Crore in the previous year

    Tax Rate

    Surcharge rate for Companies

    Cess

    Flat Rate 25%

    Annual Income

    Between 1 Crore - 10 Crore = 7%

    More than 10 Crore = 12%

      

    4%

     

    (b) If gross turnover exceeding Rs.400 Crore in the previous year

    Tax Rate

    Surcharge rate for Companies

    Cess

    Flat Rate 30%

    Annual Income

    Between 1 Crore - 10 Crore = 7%

    More than 10 Crore = 12%

      

    4%

     

    OR

    Domestic Companies (Special Tax Rates)

    Domestic companies have the option to opt for special tax rates under various sections:

    Section

    Tax Rate

    Under Section 115BA

    Under Section 115BAA

    Under Section 115BAB

    25%

    22%

    15%

     

    • Surcharges applicable under section 115BAA and 115BAB is 10%.
    • Health and Education cess is 4%.
    • For opting tax rate under these sections you have to forgo certain exemptions and deductions.
    • Those who opt under section 115BAA and 115BAB are exempted from provision of MAT.

     

    Foreign companies

    Tax Rate

    Surcharge rate for Foreign companies

    Cess

    Flat Rate 40%

    Annual Income

    Between 1 Crore - 10 Crore = 2%

    More than 10 Crore = 5%

      

    4%

    Also Read: Income Tax Slab Rates: Individual, Senior Citizens (FY 2021-2022)


    What are the Income Tax Rates for Co-operative Societies for FY 2021-22?

    Co-operative Societies (Normal Tax Rate)

    Tax Rate

    Surcharge rate for Co-operative Societies

    Cess

    Slab Rate

    Upto Rs.10000 = 10%

    Rs.10000-Rs.20000 = 20%

    Above Rs.20000 = 30%

    Annual Income

    More than 1 Crore = 12%

      

    4%

     

    OR

    Co-operative Societies (Special Tax Rates)

    Under section 115BAD

    Tax Rate

    Surcharge rate for Co-operative Societies

    Cess

    Rate 22%

    Annual Income

    More than 1 Crore = 10%

     

    4%

     

    If you opt for special tax rates you have to forgo deductions and exemptions.

    Also Read: Section 206AB- Higher TDS rate for Non-filers of ITR


    What are the Income Tax Rates for Partnership Firms and Limited Liability Partnership (LLP) for FY. 2021-22?

    Tax Rate

    Surcharge rate

    Cess

    Flat Rate 30%

    Annual Income

    More than 1 Crore = 12%

     

    4%

     

    What are the Income Tax Rates for Local Authorities for FY. 2021-22?

    Tax Rate

    Surcharge rate

    Cess

    Flat Rate 30%

    Annual Income

    More than 1 Crore = 12%

     

    4%

     

    Conclusion

    Income Tax Rates for the financial year 2021-22 as per Finance Act 2021 is same as of financial year 2020-21.

    Under which Domestic Companies & Co-operative Societies are given an option to apply special tax rates which are very lower than normal tax rates, but if you follow special tax rates then you have to forgo certain deductions and exemptions.

    Also Read: HSN Code (6 digits / 8 digits) Mandatory from 1st April 2021

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