RATES OF INCOME TAX


The rates of personal income-tax or corporate income-tax for the assessment year 2008-09 are as under:

1. For woman, resident in India and below the age of 65 years at any time during the previous year.
Upto Rs. 1,45,000Nil
Rs. 1,45,001 to Rs. 1,50,00010%
Rs. 1,50,001 to Rs. 2,50,00020%
Above Rs. 2,50,00030%

2. For an individual (man or woman), resident in India who is of the age of 65 years or more at any time during the previous year.
Upto Rs. 1,95,000Nil
Rs. 1,95,001 to Rs. 2,50,00020%
Above Rs. 2,50,000 30%

3. Individuals, [other than those mentioned above, HUF, AOP/BOI (other than co-operative societies).
Upto Rs. 1,10,000>Nil
Rs. 1,10,001 toRs. 1,50,00010%
Rs. 1,50,001 to Rs. 2,50,00020%
Above Rs. 2,50,00030%

The amount of income-tax computed in accordance with the above provisions or in section 111A or section 112 shall, in the case of every individual or Hindu undivided family or association of persons or body of individuals having a total income exceeding Rs. 10,00,000, be reduced by the amount of rebate (if any) of income-tax calculated under Chapter VIIIA, and the income-tax as so reduced, be increased by a surcharge for purposes of the Union calculated at the rate of 10% of such income-tax.

Hence, no surcharge is to be levied if the total income does not exceed Rs. 10,00,000.

Education Cess: Education Cess at the rate of 2% on income-tax and surcharge continues to be levied in the proposed rate structure.
Higher Secondary Education Cess(HSEC): HSEC at the rate of 1% on income tax and surcharge continues to be levied in the proposed rate structure. In case of Firms or Companies the rate of tax is 30%. Education Cess of 2% and HSEC of 1% is also leviable on the income tax calculated.