| 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.
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