Tax Rates

DIRECT AND INDIRECT TAX LAWS

INCOME TAX

RATES OF INCOME TAX FOR ASSESSMENT YEAR 2008-09 AND 2009-10

(AS PER THE FINANCE ACT, 2008)

Individuals, HUFs etc. 

• In the case of women assesses, not being senior citizens, the income-tax is nil upto Rs. 1,45,000; 10% between Rs. 1,45,001 to Rs. 1,50,000; 20% on 1,50,001 to Rs. 2,50,000 and 30% thereafter.
• In the case of senior citizens, the income-tax is nil upto Rs. 1,95,000; 20% on 1,95,001 to Rs. 2,50,000 and 30% thereafter.

Surcharge on Income-Tax

1. Education Cess @ 2% on Income Tax continues unamended. An additional levy of Secondary and Higher Education Cess has been levied @ 1%.
2. Individuals, HUFs, AOPs and BOIs having income exceeding Rs. 10,00,000 would be required to pay ten per cent surcharge on the total income-tax payable after rebate under Chapter VIIIA, and Education Cess @ 2% plus Secondary and Higher Education Cess @ 1%.
3. 10% in the case of artificial juridical person plus education cess @ 2% and SHE Cess @ 2%.

• In the case of women assesses, not being senior citizens, the income-tax is nil upto Rs. 1,80,000; 10% between Rs. 1,80,001 to Rs. 3,00,000; 20% on 3,00,001 to Rs. 5,00,000 and 30% thereafter.
• In the case of senior citizens, the income-tax is nil upto Rs. 2,25,000; 10% on 2,25,001 to Rs. 3,00,000; 20% on Rs. 3,00,001 to Rs. 5,00,000 and 30% thereafter.

Surcharge on Income-Tax

1. Education Cess @ 2% on Income Tax and additional levy of Secondary and Higher Education Cess @ 1% continues unamended.
2. Individuals, HUFs, AOPs and BOIs having income exceeding Rs. 10,00,000 would be required to pay ten per cent surcharge on the total income-tax payable after rebate under Chapter VIIIA, and Education Cess @ 2% plus Secondary and Higher Education Cess @ 1%.
3. 10% in the case of artificial juridical person plus education cess @ 2% and SHE Cess @ 2%.

Firms

Companies (Domestic)

Rates for Deduction of Tax at Source (T.D.S.) in certain cases Assessment Year 2009-10 

* The amount of tax deducted is to be increased by a surcharge @ 10% of such tax where such income is in excess of Rs. 10 Lakhs in case of Individuals, HUF etc. and @ 10% in case of firms and domestic companies. 

SERVICE TAX 12.36% on the following notified services

• Advertising Services
• Air travel agent’s services
• Airport Services
• Architect’s services
• Asset management including portfolio management and fund management
• Auction of property services
• Authorised service station in relation to service or repair of:
  1. motor cars or two wheelers
  2. light motor vehicles
• Automated teller machine operations, maintenance or management services
• Banking and other financial services
  1. Banking company or financial institution or a non-banking financial institution
  2. Any other body corporate
  3. Any forex broker (which is not covered earlier)
• Beauty parlour’s services
• Broadcasting services
• Business auxiliary service
• Business exhibition services
• Business or commerce support services
• Cable operator’s services
• Cargo handling agency’s services
• Cleaning activity services
• Clearing and forwarding agent’s services
• Club or association services
• Commercial or Industrial Construction services
• Commercial training or coaching services
• Consulting engineer’s services
• Convention center’s services
• Courier services
• Credit card, debit card, charge card or other payment card services
• Credit rating agency’s services
• Custom house agent’s services
• Design services
• Development and supply of content for use in telecommunication services, etc.
• Dredging services
• Dry cleaner’s services
• Erection, commission or installation services
• Event Management Services
• Execution of works contract
• Fashion designer’s services
• Foreign exchange broking services
• Forward contract services
• Franchise services
• General insurance services
• Goods transport agency services
• Health club and fitness center’s services
• Insurance auxiliary services concerning general insurance business
• Insurance auxiliary services concerning life insurance business
• Intellectual property services
• Interior decorator’s services
• Internet café’s services
• Internet telephony services
• Life insurance business services
• Mailing list compilation and mailing services
• Management or business consultant’s services
• Management, maintenance or repair services
• Managing public relations services
• Mandap keeper’s services
• Manpower recruitment agency’s services
• Market research agency’s services
• Mining of mineral, oil or gas
• Multi-system operator’s services
• On-line information and database access and/or retrieval services
• Opinion poll services
• Other port services
• Outdoor caterer’s services
• Packaging activity services
• Pager services
• Pandal or shamiana services
• Photography studio or agency’s services
• Port services
• Practising Chartered Accountant’s services
• Practising Company Secretary’s services
• Practising Cost Accountant’s services
• Rail travel agent’s services
• Real estate agent’s services
• Recovery agent services
• Registrar to an issue services
• Rent a cab scheme operator’s services
• Renting of immovable property
• Sale of space or time for advertisement services
• Scientific or technical consultancy
• Security agency’s services
• Service or repair of automobiles services
• Share transfer agent services
• Ship management services
• Site formation and clearance, excavation and earth moving and demolition services
• Sound recording services
• Sponsorship services
• Steamer agent’s services
• Stock broker services
• Storage or warehouse keeper’s services
• Survey and exploration of mineral services
• Survey and map making
• Technical inspection and certification services
• Technical testing and analysis services
• Telecommunication service
• Tour operator’s services
• Transport of goods by air services
• Transport of goods in containers by rail services
• Transport of goods through pipeline or conduit services
• Transport of passengers embarking for international journey services
• Transport of persons by cruise ship services
• Travel agent’s services
• TV or radio programme production services
• Underwriter’s services
• Video-tape production services