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Income Tax Rates in India for financial year 2008-2009

Posted in Taxes  by Ram Vishnu
February 17, 2009



Following are the income tax rates for financial year 2008-2009:

A. Normal Rates of Tax

Where the total income does not exceed Rs.1,50,000/-. Nil
Where the total income exceeds Rs. 1,50,000 but does not exceed Rs. 3,00,000/-. 10 per cent, of the amount by which total income exceeds Rs.1,50,000/-
Where the total income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/-. Rs. 15,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 3,00,000/-.
Where the total income exceeds Rs. 5,00,000/-. Rs. 55,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.

B. Rates of tax for a woman, resident in India and below sixty-five years of age at any time during the financial year

Where the total income does not exceed Rs. 1,80,000/-. Nil
Where the total income exceeds Rs. 1,80,000 but does not exceed Rs. 3,00,000/-. 10 per cent, of the amount by which total income exceeds Rs.1,80,000/-
Where the total income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/-. Rs.12,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 3,00,000/-.
Where the total income exceeds Rs. 5,00,000/-. Rs. 52,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.

C. Rates of tax for an individual, resident in India and of the age of sixty-five years or more at any time during the financial year

Where the total income does not exceed Rs. 2,25,000/-. Nil
Where the total income exceeds Rs.2,25,000 but does not exceed Rs. 3,00,000/-. 10 per cent, of the amount by which total income exceeds Rs.2,25,000/-
Where the total income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/-. Rs. 7,500/- plus 20 per cent of the amount by which the total income exceeds Rs. 3,00,000/-.
Where the total income exceeds Rs. 5,00,000/-. Rs. 47,500/- plus 30 per cent of the amount by which the total income exceeds Rs.5,00,000/-.

Surcharge on income tax:
The amount of income-tax computed in accordance with the preceding provisions of this paragraph shall be increased by a surcharge at the rate of ten percent of such income tax where the total income exceeds ten lakh rupees.

However, the total amount payable as income-tax and surcharge shall not exceed the total amount payable as income tax on a total income of Rs.10,00,000/- by more than the amount of income that exceeds Rs.10,00,000/-.

Additional surcharge on income tax (Education Cess on income tax):
The amount of income-tax as increased by surcharge, if any, mentioned above shall be further increased by an additional surcharge (Education Cess on Income Tax) at the rate of two percent of the income-tax and surcharge.

Additional surcharge on Income Tax (Secondary and Higher Education Cess on Income-tax):
From Financial Year 2007-08 onwards, an additional surcharge is chargeable at the rate of one percent of income-tax and surcharge (not including the Education Cess on income tax).

Surcharge, Education Cess, and Secondary and Higher Education Cess are payable by both resident and non-resident assessees.

A circular from Central Board of Direct Taxes, Government of India, provides details on the income tax rates for financial year 2008-2009 (i.e., Assessment year 2009-2010) as well as rules for income tax exemptions and deductions.




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