Personal Taxation for Resident

Individuals as per Finance Bill 2010

Rates of Income-tax
General (other than women and senior
citizens)
Income Level
Rate of tax
(%)
Upto Rs. 1.6 lakhs -
Above Rs. 1.6 lakhs to Rs. 5 lakhs 10
Above Rs. 5 lakhs to Rs. 8 lakhs 20
In excess of Rs. 8 lakhs 30
Women below 65 years
Income Level
Rate of tax
(%)
Upto Rs. 1.90 lakhs -
Above Rs. 1.90 lakhs to Rs. 5 lakhs 10
Above Rs.5 lakhs to Rs. 8 lakhs 20
In excess of Rs. 8 lakhs 30
Senior Citizens (Individuals over 65
years)
Income Level
Rate of tax
(%)
Upto Rs. 2.40 lakhs -
Above Rs. 2.40 lakhs to Rs. 5 lakhs 10
Above Rs. 5 lakhs to Rs.8 lakhs 20
In excess of Rs.8 lakhs 30
Surcharge on Income Tax for all
categories (general, women below 65
years and senior citizens) (%) NIL
Education & Secondary and Higher
Education Cess for all categories (%) 3
Computation of Income
Heads of Income Amt. (Rs.) Amt. (Rs.) Amt. (Rs.)
Salaries
Net Taxable Salary
Income(Loss) from House Property
Income from Other Sources
Gross Total Income -
Less: Deductions under Chapter VI-A
under Section 80C,80CCC,80CCD
under section 80CCF
under section 80D
u/s 80DD -
under section 80 DDB
u/s 80E
Donation u/s 80G
u/s 80 GG
u/s 80U
Gross Eligible Investments/Deductions
General
Senior Citizens
#REF!
Total Income #REF!
say #REF!
General
Income Tax on Total Income #REF!
Education & Secondary and Higher
Education Cess #REF!
#REF!
Effective Tax Rate #REF!
Women below 65 years
Income Tax on Total Income #REF!
Education & Secondary and Higher
Education Cess #REF!
#REF!
Effective Tax Rate #REF!
Senior Citizens
Income Tax on Total Income #REF!
Education & Secondary and Higher
Education Cess #REF!
#REF!
Effective Tax Rate #REF!
Capital Gains are subject to special
rates of taxation as per the Income Tax
laws.
Corporate Income Tax Rates as per Finance Bill 2010(Budget)
Pre-Budget Post-Budget
% %
Domestic SME Companies (Total Income not exceeding INR 10mn)
Income Tax 30 30
Surcharge - -
Education & Secondary Higher
Education Ces 3 3
Effective Tax Rate 30.900 30.900
Large Domestic Companies (Total Income exceeding INR 10mn)
Income Tax 30 30
Surcharge 10 7.50
Education & Secondary Higher
Education Cess 3 3
Effective Tax Rate 33.990 33.2175
Foreign SME Companies (Total Income not exceeding INR 10mn)
Income Tax 40 40
Surcharge 0.0 -
Education & Secondary Higher
Education Cess 3 3
Effective Tax Rate 41.200 41.200
Large Foreign Companies (Total Income exceeding INR 10mn)
Income Tax 40 40
Surcharge 2.5 2.5
Education & Secondary Higher
Education Cess 3 3
Effective Tax Rate 42.230 42.230
Minimum Alternate Tax (MAT) for Domestic Companies
Pre-Budget Post-Budget
% %
Domestic SME Companies (Total Income not exceeding INR 10 mn)
Income Tax (as % of book profits) 15.00 18.00
Surcharge
Education Cess 3 3
Effective Tax Rate 15.450 18.540
Large Domestic Companies (Total Income exceeding INR 10 mn)
Tax (as % of book profits) 15 18
Surcharge 10 7.50
Education & Secondary Higher
Education Cess 3 3
Effective Tax Rate 16.995 19.931
Applicability of MAT provisions in
respect of foreign companies
depends upon the prevalent facts
and circumstances.