Income Tax
History
Income tax levels in India were very high during 1950-1980, in 1970-71 there were 11 tax slabs with highest tax rate being 93.5% including surcharges. In 1973-74 highest rate was 97.5%. But to reduce tax evasion tax rates were reduced later on, by "1992-93" maximum tax rates were reduced to 40%. [2][3]
[edit]Residential status, Scope of taxable income & Charge
[edit]Charge to Income-tax
Whose income exceeds the maximum amount, which is not chargeable to the income tax, is an assesse, and shall be chargeable to the income tax at the rate or rates prescribed under the finance act for the relevant assessment year, shall be determined on basis of his residential status.
Income tax is a tax payable, at the rate enacted by the Union Budget (Finance Act) for every Assessment Year, on the Total Income earned in the Previous Year by every Person.
The chargeability is based on nature of income, i.e., whether it is revenue or capital. The rates of taxation of income are-:
Income Tax Rates/Slabs Rate (%) (applicable for assessment year 2013-14)
Net income range (For resident woman below 60 years on the last day of the previous year) Net income range (For resident senior citizen1) Net income range (For super senior citizen2) Net income range (For any other person excluding companies and co-operative societies) Income Tax rates3
Up to Rs. 200000 Up to Rs. 250000 Up to Rs. 500000 Up to Rs. 200000 Nil
Rs. 200001-500000 Rs. 250001-500000 - Rs. 200001-500000 10%
Rs. 500001-1000000 Rs. 500001-1000000 Rs. 500001-1000000 Rs. 500001-1000000 20%
Above Rs. 1000000 Above Rs. 1000000 Above Rs. 1000000 Above Rs. 1000000 30%
^1 Senior citizen is one who is 60 years or more at any time during the previous year but not more than 80 years on the last day of the previous year.
^2 Super senior citizen is one who is 80 years or more at any time during the previous year.
^3 Surcharge isn't applicable for any person excluding companies whose taxable income exceed Rs. 1
Income tax levels in India were very high during 1950-1980, in 1970-71 there were 11 tax slabs with highest tax rate being 93.5% including surcharges. In 1973-74 highest rate was 97.5%. But to reduce tax evasion tax rates were reduced later on, by "1992-93" maximum tax rates were reduced to 40%. [2][3]
[edit]Residential status, Scope of taxable income & Charge
[edit]Charge to Income-tax
Whose income exceeds the maximum amount, which is not chargeable to the income tax, is an assesse, and shall be chargeable to the income tax at the rate or rates prescribed under the finance act for the relevant assessment year, shall be determined on basis of his residential status.
Income tax is a tax payable, at the rate enacted by the Union Budget (Finance Act) for every Assessment Year, on the Total Income earned in the Previous Year by every Person.
The chargeability is based on nature of income, i.e., whether it is revenue or capital. The rates of taxation of income are-:
Income Tax Rates/Slabs Rate (%) (applicable for assessment year 2013-14)
Net income range (For resident woman below 60 years on the last day of the previous year) Net income range (For resident senior citizen1) Net income range (For super senior citizen2) Net income range (For any other person excluding companies and co-operative societies) Income Tax rates3
Up to Rs. 200000 Up to Rs. 250000 Up to Rs. 500000 Up to Rs. 200000 Nil
Rs. 200001-500000 Rs. 250001-500000 - Rs. 200001-500000 10%
Rs. 500001-1000000 Rs. 500001-1000000 Rs. 500001-1000000 Rs. 500001-1000000 20%
Above Rs. 1000000 Above Rs. 1000000 Above Rs. 1000000 Above Rs. 1000000 30%
^1 Senior citizen is one who is 60 years or more at any time during the previous year but not more than 80 years on the last day of the previous year.
^2 Super senior citizen is one who is 80 years or more at any time during the previous year.
^3 Surcharge isn't applicable for any person excluding companies whose taxable income exceed Rs. 1