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RATES
OF INCOME TAX
FOR
INDIVIDUALS, HUFs, ASSOCIATION OF PERSONS AND BODY OF INDIVIDUALS
INCLUDING WOMEN AND SENIOR CITIZENS
For A.Y. 2005- 2006
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Income Slab
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Rates of Income Tax
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Upto Rs. 50,000
Rs. 50,001 to Rs. 60,000
Rs. 60,001 to Rs.
1,50,000
Rs. 1,50,001 and above
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NIL
10 Percent of the amount by which the total income exceeds
Rs. 50,000
Rs. 1,000 plus 20 percent of the amount by which the total
income exceeds Rs. 60,000
Rs. 19,000 plus 30 percent of the amount by which the
total income exceeds Rs. 1,50,000
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Advance
tax for A.Y. 2006- 2007
(i)
For Individuals,
HUFs, Association of Persons and Body of individuals (except women below age of
65 years and senior citizens)
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Income Slab
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Rates of Income Tax
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Upto
Rs. 1,00,000
Rs.
1,00,001 to Rs. 1,50,000
Rs.
1,50,001 to Rs. 2,50,000
Rs.
2,50,001 and above
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NIL,
10
percent of the amount by which the
total income exceeds Rs. 1,00,000
Rs.
5,000 plus 20 percent of the amount by which the total income exceeds Rs.
1,50,000
Rs.
25,000 plus 30 percent of the amount by which the total income exceeds Rs.
1,50,000
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(ii)
For women
resident in India and below the age of 65 years.
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Income Slab
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Rates of Income Tax
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Upto
Rs. 1,35,000
Rs.
1,35,001 to Rs. 1,50,000
Rs.
1,50,001 to Rs. 2,50,000
Rs.
2,50,001 and above
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NIL
10
percent of the amount by which the total income exceeds Rs. 1,35,000
Rs.
1,500 plus 20 percent of the amount by which the total income exceeds Rs.
1,50,000
Rs.
21,500 plus 30 percent of the amount by which the total income exceeds Rs.
2,50,000
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(iii)
For senior
citizens (individuals above age of 65 years)
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Income Slab
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Rates of Income Tax
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Upto
Rs. 1,85,000
Rs.
1,85,001 to Rs. 2,50,000
Rs.
2,50,001 and above
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NIL
20
percent of the amount by which the total income exceeds Rs. 1,85,000
Rs.
21,500 plus 30 percent of the amount by which the total income exceeds Rs.
2,50,000
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Surcharge for A.Y. 2005-
2006 and 2006- 2007.
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Assessment Year
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Rate of Surcharge
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Income criteria for surcharge
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For
A.Y. 2005- 2006
For
A.Y. 2006- 2007
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10%
of tax
10%
of tax
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When
total income exceeds Rs. 8,50,000
When
total income exceeds Rs. 10,00,000
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Education Cess:
From A.Y. 2005- 2006, Education Cess @ 2% of Income-tax (including
surcharge
thereon) shall also be levied.
Note
1 :
For Annual Income Tax Tables see pages
Note
2 : For monthly & Annual Salary Table for
F.Y. 2005-2006 (A.Y. 2006-2007)
Standard Deduction:
For A.Y. 2005- 2006:
The
rate of standard deduction is 40% of the gross salary subject to the maximum
limit as under:
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Particulars of Salary Income
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Maximum Deduction Available
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1.
Upto Rs. 5 lakh
2.
Above Rs. 5 lakh
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30,000
20,000
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For A.Y. 2006- 2007:- No standard deduction shall be allowed from gross salary.
FOR PARTNERSHIP FIRMS
For
A.Y. 2005- 2006 and Advance tax for A.Y. 2006- 2007
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Assessment Year
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Rate of Income Tax
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Rate of Surcharge
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For
A.Y. 2005- 2006
For
A.Y. 2006- 2007
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35%
on whole of the income
30%
on whole of the income
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2.5% of tax
10% of tax
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Income
of partnership firms is computed after allowing interest on capital to partners
and remuneration to working partners.
Education Cess:
From A.Y. 2005- 2006, Education Cess @ 2% of income-tax (including
Surcharge thereon)
shall also be levied.
FOR
CO- OPERATIVE SOCIETY
For
A.Y. 2005- 2006 and advance tax for A.Y. 2006-2007
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Income Slab
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Rates of Income Tax
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Upto
Rs. 10,000
Rs.
10,000- Rs. 20,000
Rs.
20,000 and above
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10%
of income
Rs.
1,000 plus 20% of the income exceeding Rs. 10,000
Rs. 3,000
plus 30% of the income exceeding Rs. 20,000
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Surcharge : For A.Y.
2005- 2006, Surcharge @ 2.5 % of tax liability is leviable
: For A.Y. 2006- 2007, No surcharge shall be
levied.
Education Cess : From A.Y. 2005- 2006, Education Cess @ 2%
of Income-tax (including
surcharge
thereon) shall also be levied.
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FOR LOCAL AUTHORITY
Income-tax
for A.Y. 2005- 2006 and advance- tax for A.Y. 2006- 2007 on whole of the income
of the assessee is leviable @ 30%.
Surcharge : For A.Y.
2005- 2006, Surcharge @ 2.5% of income-tax
liability is leviable
: For A.Y. 2006- 2007, No
Surcharge shall be levied.
Education Cess : From A.Y. 2005-
2006, Education Cess @ 2% of Income-tax
(including
surcharge
thereon) shall also be levied.
FOR COMPANY
For
A.Y. 2005- 2006 and Advance- Tax for A.Y. 2006- 2007
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Type of Company
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Rates of Income- Tax
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For A.Y. 2005-2006
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For A.Y. 2006-2007
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1.
A Domestic Company
2.
A Foreign Company where income consists of :-
(i)
Royalties received from Government or an Indian concern under an
agreement made after March 31,1961, but before April 1, 1976, or fees for rendering technical services received from
Government or an Indian concern under an agreement made after February 29,1964, but before April 1, 1976, and where such agreement has,
in either case, been approved by the Central Government.
(ii)
Where agreement referred above is made between 1.4.1976 to 31.5.1997
(iii)
Where agreement referred above is made after 31.5.1997
(iv)
On the balance, if any, of the total income.
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35%
50%
NIL
NIL
40%
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30%
50%
NIL
NIL
40%
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Surcharge
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Assessment Year
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Type of Assessee
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Rate of Surcharge
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For A.Y. 2005- 2006
For A.Y. 2006- 2007
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Every Company
Domestic Company
Foreign company
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2.5% of Income-Tax
10% of Income- Tax
2.5% of Income- Tax
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Education Cess :
From A.Y. 2005- 2006, Education Cess @ 2% of Income- Tax (including
surcharge
thereon) shall also be levied.
Note :
The companies having taxable income of less than 7.5% of the “book
profit”
are also liable
to pay income-tax on the basis of “Deemed Income”. For
details, please
refer the Chapter “Income-Tax on Companies.”
WEALTH
TAX :
Wealth
tax for A.Y. 2005-2006 and A.Y. 2006-2007 on the taxable wealth of the assessee,
as on the valuation date, exceeding Rs. 15,00,000, is leviable @1%
OTHER TAX RATES SPECIFIED IN THE INCOME TAX ACT
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SECTION
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INCOME
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RATE OF INCOME TAX
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For A.Y. 2005-2006
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For A.Y. 2006-2007
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111A
112
115A
115AB
115AC
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Short term Capital Gains from Securities listed on
a recognised stock exchange
Long
Term Capital Gains
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If assessee is a resident individual or
H.U.F.
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If assessee is a non-resident individual
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If assessee is a domestic company
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If assessee is a foreign
company
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In any other case of a resident
If the assessee is a non- resident (not being a
company) or a foreign company
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On dividend received from domestic
Companies.
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On dividend received (other than
Dividends from domestic
companies)
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On interest received on loans given in
Foreign currency to Indian concern or Indian
Government
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On Income received from units of Mutual
Fund purchased in foreign
currency
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On royality or fee for technical services
Other than income mentioned in
section 44DA(1) from Indian concern or Govt. of India under approved
agreement.
(i) where agreement is made before
31.5.1997
(ii)
where agreement is made after 31.5.1997
but before 1.6.2005
(iii)where
agreement is made on or after
1.6.2005
If
the assessee is a foreign company:-
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On royalty or fees for technical services
from Indian concern or Govt. of
India
under approved agreement.
(i)where agreement is made before 31.5.1997
(ii)
where agreement is made after 31.5.1997
Income of an Overseas Financial Organisation (offshore fund) from units purchased in
foreign currency or capital gains therefrom.
Income of non-resident from bonds or Global
Depository Receipts purchased in foreign currency or capital gains
thereof.
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10%
20%
20%
20%
20%
20%
20%
NIL
20%
20%
20%
30%
20%
----
30%
20%
10%
10%
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10%
20%
20%
20%
20%
20%
20%
NIL
20%
20%
20%
30%
20%
10%
30%
20%
10%
10%
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115ACA
115AD
115B
115BB
115BBA
115BBB
115E
115-O
161(1A)
164
164A
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Income of resident employees from Global Depository
Receipts purchased in foreign currency
In case of income of a foreign institutional
investor:-
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Income from listed securities (other than
Sec. 115AB)
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From short- term gains of such securities
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From long- term capital gains
Income
from life insurance business
On income in respect of winnings from lotteries,
cross word puzzles, races and horse races, card games, gambling or betting-
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when assessee is a non-corporate resident
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where assessee is a domestic company
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where assessee is a non- resident
On income of a non- resident foreign sportsman from
any game in India, advertisement or winnings or contribution of an article
relating to games or sports in India or income of non- resident sports
association from guarantee money.
Income from units of an open ended equity oriented
fund of U.T.I. or a Mutual Fund.
On investment income from Foreign Exchange Assets
& Long- term Capital gains of non-resident Indians.
On
distributed profits of domestic companies.
On income from business when assessee is a trust as
per terms of the section.
On Income of private discretionary trust where
shares of beneficiary are not known.
Income
of Oral trusts.
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10%
20%
10%
10%
12.5%
30%
30%
30%
10%
10%
20%
[10%
on long term capital gains]
12.5%
30%
30%
30%
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10%
20%
10%
10%
12.5%
30%
30%
30%
10%
10%
20%
[10%
on long term capital gains]
12.5%
30%
30%
30%
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SECTION
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INCOME
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RATE OF INCOME TAX
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For A.Y. 2005-2006
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For A.Y. 2006-2007
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167B(1)
167B(2)
(i)
167B(2)
(ii)
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On Income of A.O.P. or Body of Individuals where
shares of members are not known. (Provided if income of any member is
chargeable at a higher rate than the higher rate shall be applicable)
On Income of A.O.P. or Body of Individuals not
covered u/s 167B(1) while other income of any member exceeds the thresh hold
limit.
On Income of A.O.P. of Body of Individuals where
income of a member is chargeable at a rate higher than the maximum chargeable
rate then on hat portion of income of ha A.O.P. or Body of individuals that
relate to such person the tax shall be calculated on such higher rate and on
balance of total income.
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30%
30%
30%
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30%
30%
30%
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Note : For A.Y.
2005-2006 :- Surcharge @ 2.5% of Income-Tax liability on all type of Companies (including Foreign
Company).
: For A.Y.
2006-2007 :- Surcharge @10% of Income-
Tax liability on every domestic company and @2.5% of Income-Tax liability on every foreign company.
: From A.Y.
2005-2006, Education Cess @ 2% of Income- Tax and surcharge thereon shall be levied.
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