Income Tax Rates for FY 2021-22 - Part II

I hope you must have gone through and liked Part I of the Income Tax rates which focused on Individuals and HUF. 

This blog will help you understand the tax rates that is applicable to other assessees like AOP, BOI and other Artificial Juridical Person. 

Additionally, surcharge is also charged along with the taxes as per the income earned. It is levied on Income tax of the assessees who fall into the high income bracket as depicted in the chart below. This is charged to shift the burden of tax from poor class to high end of the society. Below is the rate of surcharge based on the range of Income.

Note: Surcharge @ 25% and 37% shall not be applicable for Short Term Capital Gain (section 111A), Long Term Capital Gains (sec. 112A) & Income of Foreign Institutional Investors from securities (sec. 115AD). Therefore, the rate of 15% shall be applicable on such incomes.

In addition to income taxes and surcharge, Health & Education Cess (HEC) is levied in order to support the health and educational needs of the rural families in India. Hence, this cess serves the purpose of healthy living and good educational background of the rural people. At present, HEC is charged @ 4% over and above the taxes (income tax + surcharge) on total income.

Part III would be uploaded next which will cover the tax rates of a company.

Disclaimer: These are just basic concepts. However, the applicability of the law shall depend on case to case basis. 

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Thank you for reading!!