| For
the Assessment Year 2008-09 |
PERSONAL TAX RATES
For individuals, HUF, Association of Persons (AOP) and Body of
individuals (BOI):
| Taxable
income slab (Rs.) |
Rate
(%) |
Up
to 1,50,000
Up to 1,80,000 (for women)
Up to 2,25,000 (for resident individual of 65 years or above) |
NIL |
| 1,50,000
– 3,00,000 |
10 |
| 3,00,001
– 5,00,000 |
20 |
| 5,000,001
upwards |
30*
|
*A surcharge of 10 per cent of the
total tax liability is applicable where the total income exceeds Rs
1,000,000.
Note : -
- Education cess is applicable @ 3
per cent on income tax, inclusive of surcharge if there is any.
- A marginal relief may be provided
to ensure that the additional IT payable, including surcharge, on
excess of income over Rs 1,000,000 is limited to an amount by which
the income is more than this mentioned amount.
One-by-Six Scheme
One-by-six scheme was omitted according to
the proposal of Finance Bill, which said that no return shall be
required to be furnished under the proviso for assessment year 2006-07
and subsequent years. The amendment took effect from
1st June, 2006.
Tax Rates for NRI
| Name
of Income |
Rate* |
| Dividend** |
20% |
| Interest
received on loans made in foreign currency to an Indian concern or
Government of India. |
20% |
| Income
received in respect of units purchased in foreign currency |
20% |
| Royalty
fees or technical fees |
For
Agreements entered into:
- After 31.05.97 but before
01.06.05 - @ 20%
- After 01.06.05 - @ 10%
|
| Interest
on FCCB |
10% |
*The rates further
increases by surcharge and education cess.
**Other than dividends on which Dividend Distribution Tax (DDT) has
been paid.
Note:- If the NRI has a Permanent Establishment (PE) in India &
the royalty or the fees for technical services paid is effectively
connected with such, the same could be taxed at 40% (+ surcharge &
education cess) on net basis.
Fringe Benefit Tax (FBT)
The
following amendments will be in effect from 1
April 2008:
- In respect of any allotment or
transfer of any specified securities or sweat equity shares,
either directly or indirectly, by the employer to its employees
(including former), FBT will be levied.
- On the difference between FMV
of securities FBT will be payable, for both on the date of
exercise and the amount recovered from the employee.
- The FBT will be computed
according to the prescribed method of CBDT.
- The benefits which are subject
to FBT will henceforth be considered as cost of acquisition for
coputing of capital gains tax in the hands of the employee at
the time of sale of specified securities.
- Section 17(2)(iii) for the
beneficial proviso for computing the perquisite value in the
hands of the employees is deleted.
The undermentioned expenses will be excluded from Sales
Promotion & Publicity:
- Expenses on display of
products.
- Expenses on distribution of
samples, either free of cost or at a concessional rate.
The following amendments is in effect from 1
April 2007:
- Equal proportion and due dates
for the payment of advance tax on income will be applicable to
advance FBT.
- Consequential change will be
made in the process of computing interest for delay in the
payment of advance FBT.
|
Income Tax Deductions
The limit of investment is proposed to
increase from Rs 10,000 to Rs 1,00,000 subject to overall cap of Rs
1,00,000 provided under section 80CCE.
Under section 80D, the deduction has been
increased to Rs 15,000 and for senior citizen it is now Rs 20,000.
Income Tax Rebates
It is proposed to insert clause (xxi) in
sub-section (2) of this section in order to provide that the investment
in a term deposit for a fixed period of not less than five years with
any scheduled bank shall be eligible for a deduction under this section.
|
