Charge to income-tax

Whose income exceeds the maximum amount, which is not chargeable to the income tax, is an assessee, 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,[5] 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 2014-15)[6] Net income range (For Net income resident woman below range (For 60 years on the last day resident senior of the previous year) citizen1) Up to 200,000 200,001500,000 500,0011,000,000 Above 1,000,000 Net income range (For any other person Income excluding companies Tax and co-operative rates3 societies) Up to 250,000 Up to 500,000 Up to 200,000 NIL% 250,001 200,001500,000 10% 500,000 500,001 500,001 500,0011,000,000 20% 1,000,000 1,000,000 Above Above Above 1,000,000 30% 1,000,000 1,000,000 Net income range (For super senior citizen2)

^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 These slab-rates aren't applicable for the incomes which are to be taxed at special rates under section 111A, 112, 115, 161, 164 and 167. For instance, long-term capital gains (except the one mentioned in section 10(38))for all assessees is taxable at 20%. For individual assessees whose total income does not exceed 500,000 before giving any deduction under Chapter VI A are eligible for a rebate of upto 2,000 under section 87A (applicable from assessment year 2014-15 onwards). A surcharge of 10% on income tax payable is applicable for every non-corporate assessee, whose total income exceeds 10 million (applicable for assessment year 2014-15).

Residential status
The residential status of the assessee is useful in determining the scope or chargeability of the income for the assessee, i.e., whether taxable or not. For an individual person, to be a resident, any one of the following basic conditions must be satisfied:

Presence of at least 182 days in India during the previous year.

Presence of at least 60 days in India during the previous year and 365 days during 4 years immediately preceding the relevant previous year.

However, in case the individual is an Indian citizen who leaves India during the previous year for the purpose of employment (or as a member of a crew of an Indian ship) or in case the individual is a person of Indian origin who comes on a visit to India during the previous year, then only the first of the above basic condition is applicable. To

determine whether the resident individual is ordinarily resident the following both additional conditions are to be satisfied:

Resident in India in at least 2 out of 10 years immediately preceding the relevant previous year. Presence of at least 730 days in India during 7 years immediately preceding the relevant previous year.