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Home >> Policy Watch >> Indian Income Tax Rates

Indian Income Tax Rates



Individuals, HUF, Association of Persons & Body of Individuals

The tax rates applicable to indivuduals are also applicable to Hindu Undivided Family, an Association of Persons and Body of Individuals. Though certain specified incomes like long term capital gains, winnings from lottery etc. are taxable at the rate specified in the Income tax Act itself, the general tax rates applicable for the assessment year 2000-2001 and 2001-2002 are as follows :

Assessment year 2000-2001 & 2001-2002
Net income range Rates of Income tax
Up to Rs. 50,000 Nil
Rs. 50,000-Rs. 60,000 10 per cent of the amount by which the total income exceeds Rs. 50,000;
Rs. 60,000- Rs.1,50,000

Rs. 1,000 plus 20 per cent of the amount by which the total income excees Rs. 60,000;

Rs. 1,50,000 and above Rs. 19,000 plus 30 per cent of the amount by which the total income exceeds Rs. 1,50,000.

Surcharge in Financial Year 2000-2001 (Assessment year 2001-2002)

In respect of income of all categories of tax payer, the rates of income-tax have undergone little modification for the F.Y 2000-2001. The table below gives the income slabs and the proposed rates surcharge on tax payable that is applicable for the F.Y 2000-2001.

Income slab Existing rate of surcharge(A.Y 2000-2001) Surchage for A.Y. (2001-2002) Marginal relief for A.Y. (2001-2002)
Total Income upto 60,000/ NIL NIL NIL
Total Income exceeding Rs 60,000/- but not exceeding Rs 1,50,000/-. 10% 10% Note1
Total Income exceeding Rs 1,50,000/- 10% 15% Note 2

* Note1 :- If the net income exceeds Rs. 60,000 the total amount payable as Income Tax and Surcharge on such income shall not exceed the the total amount payable as income tax on the net income of Rs.60,000 (i.e Rs. 1,000) by more than the amount of income that exceeds Rs. 60,000.

** Note 2 :- If the net income exceeds Rs. 1,50,000 the total amount payable as Income Tax and Surcharge on such income shall not exceed the the total amount payable as income tax on the net income of Rs. 1,50,000 (i.e. Rs. 20,900) by more than the amount of income that exceeds Rs. 1,50,000.

The surcharge is payable after calculating rebate u/s 88 and 88.B. However, no change is proposed in the rate structure.

  • Surcharge on the excess of Income over Rs 60,000/- is limited to the amount by which the income is more than Rs 60,000/-
  • Surcharge on the excess of Income over Rs 150000/- is limited to the amount by which the income is more than Rs 150000/-.
  • In the case of Cooperative societies surcharge at the rate of 10% of tax payable is proposed for F.Y 2000-2001.
  • In the case of Resident Firms, surcharge at the rate of 10% of tax payable is proposed for F.Y 2000-2001.
  • In the case of local authorities, surcharge at the rate of 10% on tax payable is proposed for F.Y 2000-2001.
  • In the case of Companies, existing surcharge at the rate of 10% on tax payable is retained. No surcharge is payable in the case of Foreign Companies.

Firms

Though certain specified incomes like long term capital gains, winnings from lottery etc. are taxable at the rate specified in the Income tax Act itself, a firm assessed as such is taxable at the rate of 35 per cent for the assessment years 2000-2001 and 2001-2002

Companies

Though certain specified incomes like long term capital gains, winnings from lottery etc. are taxable at the rate specified in the Income tax Act itself, the general tax rates applicable for the assessment year 1998-99 and 1999-2000 are as follows :

Company Rates of income tax (per cent)
In the case of a domestic company 35
In the case of a foreign company  

1. Royalty received from Government or an Indian concern in pursuance of an agreement made by it with the Indian concern after March 31,1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made by it after February 29, 1964 but before April 1, 1976, and where such agreement has, in either case, been approved by the Central Government.

50
2.Other incomes 48
  • In the case of Companies, existing Surcharge at the rate of 10% on tax payable is retained. No surcharge is payable in the case of Foreign Companies.
  • Co-operative societies

    Though certain specified incomes like long term capital gains, winnings from lottery etc. are taxable at the rate specified in the Income tax Act itself, the general tax rates applicable for the assessment year 2000-2001 and 2001-2002 are as follows :

    Net income range Rates of income-tax (per cent)
    Up to Rs. 10,000 10
    Rs. 10,00-Rs. 20,000 20
    Rs. 20,000 and above 35