TAX RATES
Individuals, Hindu Undivided Families, AOPs, BOIs – The tax rates applicable to individuals are also applicable to a Hindu Undivided Family, an Association of Persons, Body of Individuals or an Artificial Juridical Person. The rates applicable for the Assessment Years 2006-07 and 2007-08 are as follows:
Net income range |
Income-tax rates |
Surcharge [see Note-1] |
Education cess [see Note 3] |
Up to Rs. 1,35,000 |
Nil |
Nil |
Nil |
Rs. 1,35,000 – Rs. 1,50,000 |
10% of (total income minus Rs. 1,35,000) |
Nil |
2% of income-tax |
Rs. 1,50,000 – Rs. 2,50,000 |
Rs. 1,500 + 20% of (total income minus Rs. 1,50,000) |
Nil |
2% of income-tax |
Rs. 2,50,000 – Rs. 10,00,000 |
Rs. 21,500 + 30% of (total income minus Rs. 2,50,000) |
Nil |
2% of income-tax |
Above Rs. 10,00,000 |
Rs. 2,46,000 + 30% of (total income minus Rs. 10,00,000) |
10% of income-tax [see Note 2] |
2% of income-tax and surcharge |
Net Income range |
Income-tax rates |
Surcharge [see Note-1] |
Education cess [see Note 3] |
Up to Rs. 1,85,000 |
Nil |
Nil |
Nil |
Rs. 1,85,000 – Rs. 2,50,000 |
20% of (total income minus Rs. 1,85,000) |
Nil |
2% of income-tax |
Rs. 2,50,000 – Rs. 10,00,000 |
Rs. 13,000 + 30% of (total income minus Rs. 2,50,000) |
Nil |
2% of income-tax |
Above Rs. 10,00,000 |
Rs. 2,38,000 + 30% of (total income minus Rs. 10,00,000) |
10% of income-tax [see Note 2] |
2% of income-tax and surcharge |
Net Income range |
Income-tax rates |
Surcharge [see Note-1] |
Education cess [see Note 3] |
Up to Rs. 1,00,000 |
Nil |
Nil |
Nil |
Rs. 1,00,000 – Rs. 1,50,000 |
10% of (total income minus Rs. 1,00,000) |
Nil |
2% of income-tax |
Rs. 1,50,000 – Rs. 2,50,000 |
Rs. 5,000 + 20% of (total income minus Rs. 1,50,000) |
Nil |
2% of income-tax |
Rs. 2,50,000 – Rs. 10,00,000 |
Rs. 25,000 + 30% of (total income minus Rs. 2,50,000) |
Nil |
2% income-tax |
Above Rs. 10,00,000 |
Rs. 2,50,000 + 30% of (total income minus Rs. 10,00,000) |
10% of income-tax [see Note 2] |
2% income-tax and surcharge |
Notes:
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Surcharge- Surcharge is 10 per cent of income- tax if net income of an individual, Hindu undivided family, association of persons, or body of individuals, exceeds Rs. 10,00,000. If a person, having taxable income exceeding Rs. 10,00,000, is eligible for tax rebate under section 88E, then first calculate income- tax on his income, from the tax so calculated deduct tax rebate under section 88E, 10 per cent of the balancing amount is surcharge, In the case of an artificial juridical person, surcharge is 10 per cent of income- tax (i.e., income – tax minus rebate under section 88E), even if net income is less than Rs. 10,00,000.
-
Marginal relief- In the case of the aforesaid person having a net income of exceeding Rs. 10,00,000, the net amount payable as income- tax and surcharge shall not exceed the total amount payable as income- tax on total income of Rs 10,00,000 by more than the amount of income that exceed Rs. 10,00,000.
-
Education cess- It is 2 per cent of income- tax (after rebate under section 88E) and surcharge.
Firms – A firm is taxable at the rate of 30 per cent for the Assessment years 2006-07 and 2007-08.
Surcharge: 10 per cent of income- tax [i.e., income- tax after rebate under section 88E].
Education Cess – It is 2 per cent of income- tax and surcharge.
Companies- For the Assessment Years 2006- 07 and 2007-08 the following rates of income- tax are applicable:
Company |
Rate of income-tax (per cent) |
In the case of a domestic company
In the case of a foreign company
-
Royalty received from Government or an Indian concern in pursuance of an agreement made by it with that Indian concern after March 31, 1961, but before April 1,1976, or fees for rendering technical services in pursuance of an agreement made by it after February 29,1964 but before April 1,1976, and where such agreement has, in either case, been approved by the Central Government.
-
Other income
|
30
50
40
|
Surcharge: Surcharge is applicable at the rates given below-
Domestic company
Non- domestic company |
10%
2.5% |
Note - Surcharge is Applicable at the rates given above on (income tax minus rebate under section 88E).
Education Cess- It is 2 per cent of income tax and surcharge for the assessment year 2006-07 and 2007-08.
MINIMUM ALTERNATE TAX – For the Assessment Years 2006-07 and 2007-08, the following rate of minimum alternate tax shall be applicable.
(as a % of book profit)
. Domestic company
. Foreign company |
Assessment year 2006-2007 |
Assessment year 2006-2007 |
IT |
SC |
EC |
Total |
IT |
SC |
EC |
Total |
7.5
7.5 |
0.75
0.1875 |
0.165
0.15375 |
8.415
7.84125 |
10
10 |
1
0.25 |
0.22
0.205 |
11.22
10.455 |
Co-operative Societies – The following rates are applicable to a co- operative society for the assessment years 2006-07 and 2007-08
Net Income Range |
Rate of Income- Tax |
Up to Rs. 10,000
Rs. 10,000 – Rs. 20,000
Rs. 20,000 and above |
10
20
30 |
Surcharge: Surcharge is not applicable for the Assessment Years 2006-07 and 2007-08.
Education Cess: It is 2 per cent of income tax.
Local Authorities – Local authorities are taxable at the rate of 30 per cent.
Surcharge: Surcharge is not applicable for the Assessment Year 2006-07 and 2007-08.
Education cess- It is 2 per cent of income tax.
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