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India Income Tax Rate
India Income Tax Rate is an essential part of the income tax as levied by the Indian government on taxable incomes of the individuals, companies, and co-operative societies, and trusts. The slab for the tax payment of the individuals is different for women or for senior citizens. Moreover India Income Tax Rate also varies according to the income level of different individuals.
Personal Income Tax Rates for FY 2007-08:
The Personal Income Tax as fixed by the Central Government and the Central Board of Direct Taxes under Ministry of Finance, as per the regulations of the Income Tax Act is different according to the income level of the individuals.
The slabs in the India Income Tax Rate for adult male citizens having taxable income:
All income up to Rs. 1,10,000 per year- Nil
From 1,10,001 to 1,50,000 : 10% of amount greater than Rs. 1,10,000
From 1,50,001 to 2,50,000 : 20% of amount greater than Rs. 1,50,000 + Rs. 4,000
Above 2,50,000 : 30% of amount greater than Rs. 2,50,000 + Rs. 24,000
India Income Tax Rate for women citizens with taxable income, no tax payment for income up to Rs. 1,45,000 per year while for the senior citizens it is fixed at Rs. 195,000. There is an additional charge of 10% on total tax levied if the income exceeds Rs. 8,50,000.
Taxes on Corporate Income: Apart from Personal Income Tax, the Indian companies are also taxed on their worldwide income arising from all sources, as per the provisions of the Income Tax Act. Domestic corporations- tax rate of 35% and a 2.5% surcharge Foreign corporations- tax rate of 40% and a 2.5% surcharge
Moreover, there is an extra cess on education at the rate of 2% on the tax payable. The corporates are subject to Wealth Tax at the rate of 1%, if their total income is more than 1.5 mn. The indigenous corporations are required to pay dividend distribution tax at the rate of 12.5%, although these dividends received are nontaxable in the hands of recipients. The corporations also pay for Minimum Alternative Tax at 7.5% along with surcharge and Education Tax, of book profit as tax, if the tax payable as per regular tax provisions is less than 7.5% of its book profits.
Personal Income Tax Rates for FY 2007-08:
The Personal Income Tax as fixed by the Central Government and the Central Board of Direct Taxes under Ministry of Finance, as per the regulations of the Income Tax Act is different according to the income level of the individuals.
The slabs in the India Income Tax Rate for adult male citizens having taxable income:
All income up to Rs. 1,10,000 per year- Nil
From 1,10,001 to 1,50,000 : 10% of amount greater than Rs. 1,10,000
From 1,50,001 to 2,50,000 : 20% of amount greater than Rs. 1,50,000 + Rs. 4,000
Above 2,50,000 : 30% of amount greater than Rs. 2,50,000 + Rs. 24,000
India Income Tax Rate for women citizens with taxable income, no tax payment for income up to Rs. 1,45,000 per year while for the senior citizens it is fixed at Rs. 195,000. There is an additional charge of 10% on total tax levied if the income exceeds Rs. 8,50,000.
Taxes on Corporate Income: Apart from Personal Income Tax, the Indian companies are also taxed on their worldwide income arising from all sources, as per the provisions of the Income Tax Act. Domestic corporations- tax rate of 35% and a 2.5% surcharge Foreign corporations- tax rate of 40% and a 2.5% surcharge
Moreover, there is an extra cess on education at the rate of 2% on the tax payable. The corporates are subject to Wealth Tax at the rate of 1%, if their total income is more than 1.5 mn. The indigenous corporations are required to pay dividend distribution tax at the rate of 12.5%, although these dividends received are nontaxable in the hands of recipients. The corporations also pay for Minimum Alternative Tax at 7.5% along with surcharge and Education Tax, of book profit as tax, if the tax payable as per regular tax provisions is less than 7.5% of its book profits.
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