Planet Finance

INCOME TAX RATES FOR FINANCIAL YEAR 2019-20 (ASSESSMENT YEAR 2020-21)

For Individuals, Hindu Undivided Family, Association of Persons, Body of Individuals and Artificial juridical persons

Total income	Tax rates*
Up to Rs. 2,50,000	NIL
Rs. 2,50,001 up to Rs. 5,00,000	5%
Rs. 5,00,001 up to Rs. 10,00,000	20%
Rs. 10,00,001 above	30%

For resident individuals above 60 age

Total income	Tax rates*
Up to Rs. 3,00,000	NIL
Rs. 3,00,001 up to Rs. 5,00,000	5%
Rs. 5,00,001 up to Rs. 10,00,000	20%
Rs. 10,00,001 above	30%

For resident individuals above 80 age

Type of transactions/incomes	Tax rates*
Up to Rs. 5,00,000	NIL
Rs. 5,00,001 up to Rs. 10,00,000	20%
Rs. 10,00,001 above	30%

Special rates for resident individuals

Type of transactions/incomes	Tax rates*
Above Rs. 10,00,000 dividend income from domestic companies	10%

Special rates for non-residents

Type of transactions/incomes	Tax rates*
Dividend	20%
Interest received on loans given in foreign currency to Indian concern or Government of India (not being interest referred to in section 194LB or section 194LC)	20%
Income received in respect of units purchased in foreign currency of specified Mutual Funds / UTI	20%
Royalty or fees for technical services	10%
Interest income from a notified infrastructure debt fund, specified loan agreement, specified long-term bonds, rupee denominated bonds and business trust	5%
Interest on FCCB, Dividend on GDRs	10%

Taxation of Dividend Distributed by Indian Mutual Funds to Investors

	Individual/ HUF	Domestic Company	NRI
	Dividend
Equity oriented schemes	NIL	NIL	NIL
Debt oriented schemes	NIL	NIL	NIL

	Rate of tax on distributed income (payable by the MF scheme)
Equity oriented schemes	10% + 12% Surcharge + 4% Cess = 11.648%	10% + 12% Surcharge + 4% Cess = 11.648%	10% + 12% Surcharge + 4% Cess = 11.648%
Money market or Liquid schemes / debt schemes (other than infrastructure debt fund)	25% + 12% Surcharge + 4% Cess = 29.12%	30% + 12% Surcharge + 4% Cess = 34.944%	25% + 12% Surcharge + 4% Cess = 29.12%
Infrastructure Debt Fund	25% + 12% Surcharge + 4% Cess = 29.12%	30% + 12% Surcharge + 4% Cess = 34.944%	5% + 12% Surcharge + 4% Cess = 5.824%

Capital Gains*

	Individual/ HUF	Domestic Company	NRI
	Equity Oriented Schemes
Long term capital gains	10%	10%	10%
Short term capital gains	15%	15%	15%
[Long term capital gains arises when mutual fund units of Equity Oriented Schemes are held for more than 12 months.]
[Short term capital gains arises when mutual fund units of Equity Oriented Schemes are held for 12 months or less.]

	Individual/ HUF	Domestic Company	NRI
	Other Than Equity Oriented Schemes
Long term capital gains	20%	20%	Listed schemes - 20% Unlisted schemes - 10%
Short term capital gains	30%	30% / 25%	30%
[Long term capital gains arises when mutual fund units of Other Than Equity Oriented Schemes are held for more than 36 months.]
[Short term capital gains arises when mutual fund units of Other Than Equity Oriented Schemes are held for 36 months or less.]

1. Surcharge at 15% on base tax, is applicable where income exceeds Rs. 1 crore and at 10% where income exceeds Rs 50 lakhs but does not exceed Rs. 1 crore. Marginal relief for such person is available.

# Finance Bill, 2019 has proposed a rebate of lower of actual tax liability or Rs. 12,500 (against earlier rebate of Rs. 2,500) in case of individuals having total income not exceeding Rs. 5,00,000 (against earlier income of Rs. 3,50,000).

* Plus applicable surcharge and 4% health and education cess

Source: Indiabudget.nic.in