| India Income tax Tax year: Tax year in India begins on April the 1st and ends on March the 31st of the next year.
Tax rates in India for Resident Individual being Senior Citizen (AY 2009-2010 FY 2008-2009)
Total Income / Tax Rate / Surcharge / Educational Cess ( On Income tax + Surcharge)
Rs. 0-225,000: Nil / Nil / Nil
Rs. 225,000-300,000: 10% / Nil / 3%
Rs. 300,000-500,000: 20% / Nil / 3%
Rs. 500,000 or more: 30% / If TI is more than Rs. 10,00,000 then 10% of Income tax shall be paid as Surcharge / 3%
Income Tax Rates for Resident Individual being Women (AY 2009-2010 FY 2008-2009)
Total Income / Tax Rate / Surcharge / Educational Cess ( On Income tax + Surcharge)
Rs. 0-180,000: Nil / Nil / Nil
Rs. 180,000-300,000: 10% / Nil / 3%
Rs. 300,000-500,000: 20% / Nil / 3%
Rs. 500,000 or more: 30% / If TI is more than Rs. 10,00,000 then 10% of Income tax shall be paid as Surcharge / 3%
Tax rates in India for Other Individuals (AY 2009-2010 FY 2008-2009)
Total Income / Tax Rate / Surcharge / Educational Cess ( On Income tax + Surcharge)
Rs. 0-150,000: Nil / Nil / Nil
Rs. 150,000-300,000: 10% / Nil / 3%
Rs. 300,000-500,000: 20% / Nil / 3%
Rs. 500,000 or more: 30% / If TI is more than Rs. 10,00,000 then 10% of Income tax shall be paid as Surcharge / 3%
Tax rates in India for Co-operative Societies (AY 2009-2010 FY 2008-2009)
Total Income / Tax Rate / Surcharge / Educational Cess ( On Income tax + Surcharge)
Rs. 0-10,000: 10% / Nil / 3%
Rs. 10,000-20,000: 20% / Nil / 3%
Rs. 20,000 or more: 30% / Nil / 3%
Income Tax Rates for AOPs, BOIs and HUFs (AY 2009-2010 FY 2008-2009)
Total Income / Tax Rate / Surcharge / Educational Cess ( On Income tax + Surcharge)
Rs. 0-150,000: Nil / Nil / Nil
Rs. 150,000-300,000: 10% / Nil / 3%
Rs. 300,000-500,000: 20% / Nil / 3%
Rs. 500,000 or more: 30% / If TI is more than Rs. 10,00,000 then 10% of Income tax shall be paid as Surcharge / 3%
Tax rates in India for Artificial Juridical Persons (AY 2009-2010 FY 2008-2009)
Total Income / Tax Rate / Surcharge / Educational Cess ( On Income tax + Surcharge)
Rs. 0-150,000: Nil / Nil / Nil
Rs. 150,000-300,000: 10% / 10% / 3%
Rs. 300,000-500,000: 20% / 10% / 3%
Rs. 500,000 or more: 30% / 10% / 3%
What is Surcharge? Why including it to Income Tax India?
Surcharge is an additional levy on Income Tax in India made by the Central Government of India. While the Income Tax amount is distributed to the State Governments, the surcharge is wholly held by the Central Government of India.
What is Education Cess?
Education Cess is an additional levy on Indian Income Tax and surcharge made by the Central Government of India. Education Cess is exclusively held by the Central Government for the purpose of providing education, in India.
Explanation for the terms used in this page:
- AY: Assessment Year
- HUF: Hindu Undivided Family
- AOP: Association of Persons
- BOI: Body of Individuals
- TI: Total Income
India Corporate Tax RatesRates for Companies, Firms and Local Authorities (AY 2009-2010 FY 2008-2009)
Firms
Income tax rate: 30%
Surcharge on Income Tax: 10%
Educational Cess: 3%
Domestic Companies
Income tax rate: 30%
Surcharge on Income Tax: 10%
Educational Cess: 3%
Foreign Companies
Income tax rate: 40%
Surcharge on Income Tax: 2.5%
Educational Cess: 3%
Local Authorities
Income tax rate: 30%
Surcharge on Income Tax: Nil
Educational Cess: 3%
India VAT rates Standard VAT (Value-Added Tax) rate in India is 12.5%.
Taxable Income In IndiaBesides remuneration for work, individuals may be taxed on the following Income:
- Income from house property.
- Income From Salary.
- Income from business or professions.
- Income from capital gains.
- Income from other sources.
Spouses are treated separately for tax purposes and their income is not normally clubbed. However, income of all minors, except handicapped minors, is clubbed with the income of their parents unless the income is derived from manual work or an activity involving skill, specialised knowledge and experience.
Personal Taxable Incomes:
It is obligatory for any person residing in specific cities to file Tax Return under the existing law. It was compulsory to furnish his return of income, if he fulfilled any two of the given criteria:
1. Occupation of an immovable property of specified dimensions:
2. Ownership of a car.
3. Subscription of a telephone.
4. Foreign Travel during the year.
Two more economic indicators were added to these
5. Holding of a credit card not being an add-on card.
6. Membership of a Club where entrance fee charged is Rs. 25,000 or more.
There were amendments made in the laws and initially when there were 12 cities now there are 35 cities which are included under the obligatory laws. Also, now a person has to file his returns of income if he satisfies any one of the six criteria.
But blanket obligatory rules is going to cause very severe hardship to small traders and salary earners. These days owning a telephone or 'occupying' a property are the things that everyone, irrespective of his social status or income level, does. Combining two criteria had logic behind it, but this proposed amendment seems to have been drafted in haste, and might result in severe hardship to many. Moreover, the energy of the Income Tax Department would be wasted in handling petty cases.
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