Archive for July, 2008

Income Tax rates applicable for A.Y. 2008-09

July 21, 2008

Tax Rates as applicable for different persons for the A.Y. 2008-09 are as under:

 

For resident woman (who is below 65 years of age at any time during the previous year:

 

Net Income range      Income Tax rates                   Surcharge       Education Cess

 

Upto Rs. 1,45,000       Nil                                            Nil                    Nil

Rs. 1,45,000- Rs.         10% of  (total income               Nil                    3% of Income Tax

1,50,000                      minus Rs. 1,45,000)

Rs. 1,50,000- Rs          Rs. 500 + 20% of (total

2,50,000                      income minus Rs. 1,50,000)      Nil                    3% of Income Tax

Rs. 2,50,000- Rs          Rs. 20,500 + 30% of (total

10,00,000                    income minus Rs. 2,50,000)      Nil                    3% of Income Tax

Above Rs.                    Rs. 2,45,500 + 30% of (total

10,00,000                    income minus Rs. 10,00,000)    10% of I. Tax   3% of Income Tax

 

For resident senior citizen (who is 65 years or more of age at any time during the previous year:

 

Net Income range      Income Tax rates                   Surcharge       Education Cess

 

Upto Rs. 1,95,000       Nil                                            Nil                    Nil

Rs. 1,50,000- Rs          20% of (total

2,50,000                      income minus Rs. 1,95,000)      Nil                    3% of Income Tax

Rs. 2,50,000- Rs          Rs. 11,000 + 30% of (total

10,00,000                    income minus Rs. 2,50,000)      Nil                    3% of Income Tax

Above Rs.                    Rs. 2,36,000 + 30% of (total

10,00,000                    income minus Rs. 10,00,000)    10% of I. Tax   3% of Income Tax

 

 

 

For any other individual, every HUF/AOP/BOI/artificial judicial person-

 

Net Income range      Income Tax rates                   Surcharge       Education Cess

 

Upto Rs. 1,10,000       Nil                                            Nil                    Nil

Rs. 1,10,000- Rs.         10% of  (total income               Nil                    3% of Income Tax

1,50,000                      minus Rs. 1,45,000)

Rs. 1,50,000- Rs          Rs. 4,000 + 20% of (total

2,50,000                      income minus Rs. 1,50,000)      Nil                    3% of Income Tax

Rs. 2,50,000- Rs          Rs. 24,000 + 30% of (total

10,00,000                    income minus Rs. 2,50,000)      Nil                    3% of Income Tax

Above Rs.                    Rs. 2,49,000+ 30% of (total

10,00,000                    income minus Rs. 10,00,000)    10% of I. Tax   3% of Income Tax

 

 

Firms:-

A firm is taxable at the rate of 30% for the Assessment Year 2008-09.

Surcharge: 10% of Income Tax if net income exceeds Rs. 1 crore.

                   Nil if income does not exceed Rs. 1 Crore.

 

Companies:-

A domestic company is taxable at the rate of 30% for the Assessment Year 2008-09.

Surcharge: 10% of Income Tax if net income exceeds Rs. 1 crore.

                   Nil if income does not exceed Rs. 1 Crore.

Introduction

July 19, 2008

This blog is devoted to all People of India those who pay taxes and also who doesn’t pay taxes but want to know about it.

 

Why do we pay taxes?

This is a very general question that always goes in one’s mind.

India is a developing country . To make it a developed government require funds.In order to generate funs government levy taxes. Government also levy taxes so as to spread equality of income in the country. More the person earns more he has to pay tax.

 

In India two type of tax system prevails : Direct Taxation and Indirect Taxation.

Under the system of Indirect taxation one person collects from many people and pays it to government, excise duty, service tax, sales tax are very common examples of indirect taxation. Under the system of Direct Taxation tax is levied directly on the person who has to pay it more commonly said as Income Tax. Every year government collects crores of rupees through levying taxes.

 

Since Indirect Taxation is not ones concern (as he cannot do anything in that) in my blog I will mainly deal in Direct Taxation i.e. Income Tax  system in India. Periodically I will take up matters of Service Tax and customs and other Indirect taxes also my main concern will be Income Tax. To make it more interactive readers are invited to ask their queries which would be beneficial for others also.

 

So ENJOY READING.

Vivek Goyal

Chartered Accountant

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July 17, 2008

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