Further, the domestic companies are subject to minimum alternate tax (except for those who opt for lower rate of tax of 22%/15%) not specified in above tax rates.
Transfer of units upon consolidation of mutual fund schemesof two or more schemes of equity oriented fund or two or more schemes of a fund other than equity oriented
fund in accordance with SEBI (Mutual Funds) Regulations, 1996is exempt from capital gains.
Transfer of units upon consolidation of plans within mutual fund schemes in accordance with SEBI (Mutual Funds) Regulations, 1996 is exempt from capital gains.
Relaxation to non-residents from deduction of tax at higher rate(except income distributed by mutual fund / dividend income on shares) in the absence of PAN subject
to them providing specified information and documents.
Bonus Stripping:
The loss due to sale of original units in the schemes, where bonus units are issued, will not be available for set off; if original units are: (A) bought
within three months prior to the record date fixed for allotment of bonus units; and (B) sold within nine months after the record date fixed for allotment of bonus units.
However, the amount of loss so ignored shall be deemed to be the cost of purchase or acquisition of such unsold bonus units.
1.
Income Tax Rates
Option A
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
(a) (b)
NIL
Rs. 2,50,001 to Rs. 5,00,000
(d) (e)
5%
Rs. 5,00,001 to Rs. 10,00,000
(d)
20%
Rs. 10,00,001 and above
(c)(d)
30%
(a) In case of a resident individual of the age of 60 years or above but below 80 years, the basic exemption limit is Rs.300,000.
(b) In case of a resident individual of age of 80 years or above, the basic exemption limit is Rs 500,000.
(c) Rate of surcharge:
37% on base tax where specified income exceeds Rs. 5 crore;
25% where specified income exceeds Rs. 2 crore but does not exceed Rs. 5 crore
15% where total income exceeds Rs. 1 crore but does not exceed Rs. 2 crore;and
10% where total income exceeds Rs 50 lakhs but does not exceed Rs. 1 crore.
Specified income – Total income excluding income by way of dividend or income under the provisions of section 111A and 112A of the Act.
Marginal relief for such person is available.
(d) Health and Education cess @ 4% on aggregate of base tax and surcharge.
(e) Individuals having total income not exceeding Rs. 500,000 can avail rebate of lower of actual tax liability or Rs. 12,500.
Option B
The Finance Act, 2020 provides for New Personal Tax Regime:
Total Income
Tax Rates
Up to 2,50,000
Nil
From 2,50,001 to 5,00,000
5%
From 5,00,001 to 7,50,000
10%
From 7,50,001 to 10,00,000
15%
From 10,00,001 to 12,50,000
20%
From 12,50,001 to 15,00,000
25%
From 15,00,001 and above
30%
For adopting Option B, most of the deductions/exemptions such as section 80C, 80D, etc. are to be foregone. The aforesaid regime is optional.
Accordingly, Individuals and HUFs have the option to be taxed under either of the options. Option B once exercised can be changed in subsequent years.
2.
Securities Transaction Tax (STT)
STT is levied on the value of taxable securities transactions as under:
Transaction
Rates
Payable by
Purchase/Sale of equity shares (delivery based)
0.1%
Purchaser/Seller
Purchase of units of equity oriented mutual fund
Nil
Purchaser
Sale of units of equity oriented mutual fund (delivery based)
0.001%
Seller
Sale of equity shares, units of business trust, units of equity oriented mutual fund (non-delivery based)
0.025%
Seller
Sale of an option in securities
0.05%
Seller
Sale of an option in securities, where option is exercised
0.125%
Purchaser
Sale of a futures in securities
0.01%
Seller
Sale of units of an equity oriented fund to the Mutual Fund
0.001%
Seller
Sale of unlisted equity shares and units of business trust under an initial offer
0.2%
Seller