ITDeductions



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  1. Normal Rates

  1. Tax Rates for Individuals/HUF/AOP/BOI

For A.Y. 2009-10

(Refer Notes)

Income

Rate(%)

Up to 150000*

NIL

150001 to 300000

10

300001 to 500000

20

Above 500000

30

Notes:

  1. * Threshold limit for resident women assessees below 65 years of age and resident individuals of 65 years and above to be increased to
    Rs. 1,80,000/- and Rs. 2,25,000/- respectively.

  2. Surcharge @ 10% applicable if total income exceeds Rs. 10,00,000/-.

  3. Marginal relief would be provided to ensure that the additional income tax payable including surcharge, on the excess of income over Rs. 10,00,000/- is limited to the amount by which the income is more than Rs. 10,00,000/-.

  4. Education Cess @ 2% and Secondary and Higher education cess @ 1% leviable on tax plus surcharge.

For A.Y. 2009-10

(Refer Notes)

Income

Rate(%)

Up to 110000*

NIL

110001 to 150000

10

150001 to 250000

20

Above 250000

30

Notes:

  1. * Threshold limit for resident women assessees below 65 years of age and resident individuals of 65 years and above to be increased to
    Rs. 1,45,000/- and Rs. 1,95,000/- respectively.

  2. Surcharge @ 10% applicable if total income exceeds Rs. 10,00,000/-.

  3. Marginal relief would be provided to ensure that the additional income tax payable including surcharge, on the excess of income over Rs. 10,00,000/- is limited to the amount by which the income is more than Rs. 10,00,000/-.

  4. Education Cess @ 2% and Secondary Higher education cess @ 1% leviable on tax plus surcharge.

  1. Tax Rates for Firms

Asst. Year

Tax
%

Surcharge
%

Education cess/ Secondary & Higher Education cess %

 Total %

2009-10

30

10

3

33.99

2009-10

30

10

3

33.99

Surcharge @ 10% applicable if total income exceeds Rs. 1,00,00,000/-.

* Subject to conditions prescribed in S. 40(b)

  1. Tax Rates for Domestic Companies

Asst. Year

Tax
%

Surcharge
%

Education cess/ Secondary & Higher Education cess %

 Total %

2009-10

30

10

3

33.99

2009-10

30

10

3

33.99

Surcharge @ 10% applicable if total income exceeds Rs. 1,00,00,000/-

  1. Dividend Distribution Tax

Asst. Year

Tax
%

Surcharge
%

Education cess/ Secondary & Higher Education cess %

 Total %

2009-10

15

10

3

16.995

2009-10

15

10

3

16.995

Note: From A.Y. 2009-10 Parent company will be allowed set off of dividend received from its subsidiary in computing its dividend distribution tax subject to certain conditions

  1. Income Distribution Tax for Mutual Fund

Rate

A.Y. 2009-10

A.Y. 2009-10

If Distributed to Individual/  HUF

If Distributed to any other person

If Distributed to Individual/ HUF

If Distributed to any other person

Tax %

12.5

20

12.5

20

Surcharge %

10

10

10

10

Edn.Cess %

3

3

3

3

Total %

14.1625

22.66

14.1625

22.66

Note: From A.Y. 2009-10 income distributed by a money market mutual fund or liquid fund will be taxed @ 25% plus surcharge and Education/Higher Education cess.

  1. Co-operative society

Income

Rate %

Education Cess/Secondary & Higher Education cess %

Total %

Up to 10000

10

3

10.3

10001 to 20000

20

3

20.6

20001 and above

30

3

30.9

  1. Special Rates

  1. Long Term Capital Gains

(a) On Equity shares and units

Long term capital gain arising on transfer of equity shares in a recognized stock exchange in India or units of an equity oriented Mutual Fund (if 65% of total proceeds of the fund are invested in equity shares), and on which Securities Transaction Tax is chargeable.

For All Assessees                 Nil - Exempt under section 10(38)

(b) On other assets and equity shares, units except falling in (a) above

Income Tax on Long Term Capital Gains

Resident Individual or HUF

20%

Domestic Companies

20%

Non-residents

20%

NRIs (for gains u/s 115E)

10%

Any other case

20%

Notes:

  1. If tax payable in case of Long Term Capital Assets, being listed securities or units or zero coupon bond, exceeds 10% of Capital gains before indexation, then such excess may be ignored.

  2. Surcharge at the rates applicable to the assessee. Education cess @ 2% and Secondary and Higher education cess @ 1% (from A.Y. 2009-10) applicable on tax inclusive of surcharge.

  3. In case of resident individual and HUF, where tax liability arises only because of the inclusion of long term capital gains, tax to be levied at 20% or 10% as the case may be, on the excess over the minimum exemption limit.

  4. In case of resident individual and HUF, relief from LTCG is available in respect of the amount by which the Taxable Income other than LTCG falls short of Basic Exemption Limit.

  5. No deduction under Chapter VI-A (80C to 80U)

  1. Short Term Capital Gains

(a) On Equity shares and units

Short term capital gain arising on transfer of equity shares on recognized stock exchange in India or units of an equity oriented Mutual Fund (if 65% of total proceeds of the fund are invested in equity shares), and on which Securities Transaction Tax is chargeable

For All Assessees

10% plus surcharge, if applicable plus Education Cess & Secondary and Higher education cess (up to A.Y. 2009-10) and 15% plus surcharge plus Education cess & Secondary and Higher Education cess (from A.Y. 2009-10)

Notes:

  1. No Deduction under Chapter VI-A (80C to 80U)

  2. In case resident individual and HUF, relief from STCG available in respect of the amount by which the taxable income other than STCG, falls short of Basic Exemption Limit

(b)

On Short Term Capital Gain Other than in (a) above

At normal Rates

Rates of Fringe Benefit Tax (FBT)

Category of Assessee

Rate

Surcharge

Education cess plus Secondary &
Higher Education Cess

Total

Firms/domestic companies

30%

10%

3%

33.99%

Non Domestic Companies

30%

2.50%

3%

31.6725%

Local Authority

30%

-

3%

30.90%

AOP/BOI whose total income does not exceed Rs. 10,00,000

30%

-

3%

30.90%

AOP/BOI whose total income exceeds Rs. 10,00,000

30%

10%

3%

33.99%