Thursday, June 27, 2013

INCOME TAX RATES FOR CHARGING INCOME-TAX IN CERTAIN CASES, DEDUCTING INCOME-TAX FROM INCOME CHARGEABLE UNDER THE HEAD "SALARIES" AND COMPUTING "ADVANCE TAX"

Rates of Income Tax Slab for the Financial Year 2013-2014 Assessment Year 2014-2015

Budget 2013 : Budget Highlights       Finance Bill 
· For a resident senior citizen (who is 60 years or more at any time during the previous year but less than 80 years on the last day of the previous year, i.e., born during April 1, 1934 and March 31, 1954)—
 
Net income range
Income-tax rates‡
Surcharge
Education cess
Secondary and higher education cess
Up to Rs. 2,50,000
Nil
Nil
Nil
Nil
Rs. 2,50,000 – Rs. 5,00,000
10% of (total income minus Rs. 2,50,000) [see Note 1]
Nil
2% of income-tax
1% of income-tax
Rs. 5,00,000 – Rs. 10,00,000
Rs. 25,000 + 20% of (total income minus Rs. 5,00,000)
Nil
2% of income-tax
1% of income-tax
Rs. 10,00,000 – Rs. 1,00,00,000
Rs. 1,25,000 + 30% of (total income minus Rs. 10,00,000)
Nil
2% of income-tax
1% of income-tax
Above Rs.1,00,00,000
Rs. 28,25,000 + 30% of (total income minus Rs.1,00,00,000)
10% of income-tax
2% of income-tax and surcharge
1% of income-tax and surcharge
 
FOR ANY OTHER INDIVIDUAL (BORN ON OR AFTER APRIL 1, 1953), EVERY HUF/AOP/BOI/ARTIFICIAL JURIDICAL PERSON—
Net income range
Income-tax rates
Education cess
Secondary and higher education cess
Up to Rs. 2,00,000
Nil
Nil
Nil
Rs. 2,00,000 - 5,00,000
Rs. 10% of (total income minus Rs. 2,00,000)
2% of income-tax
1% of income-tax
Rs. 5,00,000 - Rs. 10,00,000
Rs. 30,000 + 20% of (total income minus Rs. 5,00,000)
2% of income-tax
1% of income-tax
Above Rs. 10,00,000
Rs. 1,30,000 + 30% of (total income minus Rs. 10,00,000)
2% of income-tax
1% of income-tax
 
Notes :
1. Surcharge - Nil
2. Education cess - It is 2 per cent of income-tax.
3. Secondary and higher education cess - It is 1 per cent of income-tax.
Alternate minimum tax - For the assessment year 2013-14, tax payable by an individual cannot be less than 18.5 per cent (+EC + SHEC, effective rate 19.055 per cent) of "adjusted total income" as per section 115JC.

· For any other resident individual (born on or after April 1, 1954), any non-resident individual, every HUF/AOP/BOI/artificial juridical person—

Net income range
Income-tax rates‡
Surcharge
Education cess
Secondary and higher education cess
Up to Rs. 2,00,000
Nil
Nil
Nil
Nil
Rs. 2,00,000 – Rs. 5,00,000
10% of (total income minus Rs. 2,00,000) [see Note 1]
Nil
2% of income-tax
1% of income-tax
Rs. 5,00,000 – Rs. 10,00,000
Rs. 30,000 + 20% of (total income minus Rs. 5,00,000)
Nil
2% of income-tax
1% of income-tax
Rs. 10,00,000 – Rs. 1,00,00,000
Rs. 1,30,000 + 30% of (total income minus Rs. 10,00,000)
Nil
2% of income-tax
1% of income-tax
Above Rs. 1,00,00,000
Rs. 28,30,000 + 30% of (total income minus Rs. 1,00,00,000)
10% of income-tax [see Note 2]
2% of income-tax and surcharge
1% of income-tax and surcharge

Notes :
1. Rebate under section 87A - A resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 2,000, whichever is less.
2. Surcharge - Surcharge is 10 per cent of income-tax if net income exceeds Rs. 1 crore. It is subject to marginal relief (in the case of a person having a net income of exceeding Rs. 1 crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore).
3. Education cess - It is 2 per cent of income-tax and surcharge.
4. Secondary and higher education cess - It is 1 per cent of income-tax and surcharge.

· Alternate minimum tax -Tax payable by a non-corporate assessee cannot be less than 18.5 per cent(+SC+EC+SHEC) of “adjusted total income” as per section 115JC