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

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?

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