TAX RATES APPLICABLE TO INDIVIDUALS |
INCOME EARNED |
RATE OF INCOME TAX |
For net income up to Rs. 1.6 lakh |
Nil |
For net income between Rs. 1,60,001 and Rs. 3 Lakh |
10% of the amount by which the total income exceeds Rs. 1.6 Lakh |
For net income between Rs. 300, 001 and Rs. 5 lakh |
Rs. 14,000 + 20% of the amount by which the total income exceeds Rs. 3 lakh |
For net income of Rs. 5,00,001 and above |
Rs. 54,000 + 30% of the amount by which the total amount exceeds Rs. 5 lakh |
NOTE: No Surcharge is applicable to an individual.
NOTE: Education cess and Higher Education cess at the rate of 2% and 1% respectively on income tax to continue.
TAX RATES FOR EVERY RESIDENT INDIAN WOMAN BELOW 65 YEARS OF AGE |
INCOME EARNED |
RATE OF INCOME TAX |
For net income up to Rs. 1.9 lakh |
Nil |
For net income between Rs. 190,001 and Rs. 3 lakh |
10% of the amount by which the total income exceeds Rs. 1.90 lakh |
For net income between Rs. 300,001 and Rs. 5 lakh |
Rs. 11,000/- + 20% of the amount by which the total income exceeds Rs. 3 lakh |
For net income between Rs. 500,001 and above |
Rs. 51,000 + 30% of the amount by which the total amount exceeds Rs. 5 lakh |
NOTE: No Surcharge is applicable to an individual.
NOTE: Education cess and Higher Education cess at the rate of 2% and 1% respectively on income tax to continue.
TAX RATES FOR SENIOR CITIZENS (ABOVE 65 YEARS OF AGE) |
Income earned |
Rate of income tax |
For net income upto Rs. 2.40 lakh |
Nil |
For net income between Rs. 2.40 lakh and Rs. 3 lakh |
10 % of the amount by which the total income exceeds Rs. 2.40 lakh |
For net income between Rs. 300,001 and Rs. 5 lakh |
Rs. 6,000/- + 20% of the amount by which the total income exceeds Rs. 3 lakh |
For net income of Rs. 500,001 and above |
Rs. 46,000 + 30% of the amount by which the total amount exceeds Rs. 5 lakh |
NOTE: No Surcharge is applicable to an individual.
NOTE: Education cess and Higher Education cess at the rate of 2% and 1% respectively on income tax to continue.
TAX RATES FOR FIRMS AND DOMESTIC COMPANIES:
In case of firms and domestic companies the proposed rate of income tax for assessment year 2008-09 is 30% . However, the surcharge on income tax is 10%.
TAX RATES FOR FOREIGN COMPANIES:
In the case of foreign companies the rates of income tax payable is same as 40% (certain exceptions being there). In their case the surcharge on income tax is reduced to 2.5% from 10%.
NOTE: Education cess and Higher Education cess at the rate of 2% and 1% respectively on income tax and surcharge to continue.
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