INCOME TAX RATES

PERSONAL TAX RATES

For individuals, HUF, Association of Persons (AOP) and Body of individuals (BOI):

For the Year 2008-09

Taxable income slab (Rs.)	Rate (%)
Up to 1,15,000 Up to 1,80,000 (for women) Up to 2,25,000 (for resident individual of 65 years or above)	NIL
Upto 1,50,000	NIL
1,50,001 – 3,00,000	10
3,00,000 – 5,00,000	20
5,00,001 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.
Agricultural income is exempt from income-tax.

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(Previous year IT rates for reference)

For General

For Year 2005-2006 and 2006-2007

Taxable Annual Income Slab (In Rs.)	Tax Rate (In %)
0 - 1,00,000	Nil
1,00,001 - 1,50,000	10%
1,50,001 - 2,50,000	20%
More than 2,50,001	30%

For Women

For Year 2005-2006 and 2006-2007

Taxable Annual Income Slab (In Rs.)	Tax Rate (In %)
0 - 1,35,000	Nil
1,35,001 - 1,50,000	10%
1,50,001 - 2,50,000	20%
More than 2,50,001	30%

For Senior Citizen

For Year 2005-2006 and 2006-2007

Taxable Annual Income Slab (In Rs.)	Tax Rate (In %)
0 - 1,85,000	Nil
1,85,001 - 2,50,000	20%
More than 2,50,001	30%

Note:

Surcharge @ 10% applicable if total income exceeds Rs. 8.5 lakh for A.Y. 2005-06 and Rs. 10 lakh for A.Y. 2006-07 and 2007-08.
There is a new section 80C according to which a person can get rebate upto Rs. 1,00,000 against insurance premium, PF contributions, fixed deposit for more than 5 years in a scheduled bank and other such schemes previously under section 88.
In case of higher education there is a deduction in tax for a maximum period of 8 years.
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 (Rs. 8.5 lakh for A.Y. 2005-06) is limited to the amount by which the income is more than Rs. 10 lakh (Rs. 8.5 lakh for A.Y. 2005-06).
Education cess @ 2% on tax plus surcharge.

* A surcharge of 10% on income tax is levied where taxable income exceeds Rs. 10 lakhs which makes it effective 33% including surcharge

PERSONAL TAX RATES

For individuals, HUF, Association of Persons (AOP) and Body of individuals (BOI):

For the Year 2007-08

Taxable income slab (Rs.)	Rate (%)
Up to 1,10,000 Up to 1,45,000 (for women) Up to 1,95,000 (for resident individual of 65 years or above)	NIL
1,10,000 – 1,50,000	10
1,50,001 – 2,50,000	20
2,50,001 – 1,000,000	30
1,000,001 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.