RATES OF INCOME TAX

A. Normal Rates 1. Tax Rates for Individuals/HUF/AOP/BOI For A.Y. 2005-06 For A.Y. 2006-07 (Refer Notes) Income Up to 50000 50001 to 60000 60001 to 150000 Above 150001 Rate (%) NIL 10 20 30 Income Up to 100000* 100001 to 150000 150001 to 250000 Above 250001 Rate (%) NIL 10 20 30

2. Notes: 1. * Threshold limit for resident women assessees below 65 years of age and resident individuals of 65 years and above has been further increased to Rs.1,35,000/- and Rs.1,85,000/respectively for A.Y. 2006-07. 2. Surcharge @ 10% applicable if total income exceeds Rs. 8,50,000/- for A.Y. 2005-06 and Rs.10,00,000/- for A.Y. 200607. 3. Marginal relief would be provided to ensure that the additional income tax payable including surcharge, on the excess of income over Rs. 10,00,000/- (Rs.8,50,000/- for A.Y. 2005-06) is limited to the amount by which the income is more than Rs. 10,00,000/- (Rs.8,50,000/- for AY 2005-06). 4. Education Cess @ 2% leviable on tax plus surcharge. e.g:
For A.Y. 2005-06 Income Rate (%) 50000 60000 100000 150000 200000 250000 300000 500000 850000 10 20 20 30 30 30 30 30 Tax Thresh old 1000 9000 19000 34000 49000 64000 12400 0 22900 0 S.C Edu. cess 20 180 380 680 980 1280 2480 4580 Total Rate (%) 1020 9180 19380 34680 49980 65280 126480 233580 10 10 20 20 30 30 30 For A.Y. 2006-07 Tax S.C. Edu. cess 100 300 500 800 Total

Thresh old 5000 15000 25000 40000 10000 0 20500 0

5100 15300 25500 40800 102000 209100

2000 4100

900000 1000000 1020000 1040000 1500000

30 30 30 30 30

24400 0 27400 0 28000 0 28600 0 42400 0

24400 27400 28000 28600 42400

5368 6028 6160 6292 9328

273768 307428 314160 320892 475728

30 30 30 30 30

22000 0 25000 0 25600 0 26200 0 40000 0

4400 5000 14000 5400 26200 5764 40000 8800

224400 255000 275400 293964 448800

3. Tax Rates for Firms For A.Y. 2005-06 Ta x 35 Surcharg Educatio e n cess 2.5 2 Total Ta x 30 For A.Y. 2006-07 Surcharg Educatio Tota e n l cess 10 2 33.6 6

36.592 5

4. e.g: 5. Allowable remuneration to partners and tax for partnership firms on taxable income (including surcharge and Education cess) Income (net of int. to partners) Maximum Allowable Remuneration * Business 10000 25000 50000 70000 100000 150000 200000 300000 400000 500000 10000 25000 50000 63000 82500 112500 132500 172500 212500 252500 Tax Payable A.Y. 2006-07

Professiona Business Professional l 10000 25000 50000 63000 90000 120000 150000 190000 230000 270000 2356 5891 12623 22721 42917 63113 83309 2356 3366 10098 16830 37026 57222 77418

6. * Subject to conditions prescribed in S. 40(b) 7. Tax Rates for Domestic Companies For A.Y. 2005-06 Ta Surcharg Educatio Total Ta For A.Y. 2006-07 Surcharg Educatio Tota

x 35

e 2.5

n cess 2 36.592 5

x 30

e 10

n cess 2

l 33.6 6

8. Dividend Distribution Tax For A.Y. 2005-06 Tax Surcharg Educatio e n cess 12. 5 2.5 2 Total For A.Y. 2006-07 Tax Surcharg Educatio Total e n cess 10 2 14.02 5

13.0687 12. 5 5

9. Income Distribution Tax for Mutual Fund For A.Y. 2006-07 Income Rate of Tax 12.5 20 Surcharge Education Total cess 10 10 2 2 14.025 22.44

If Distributed to Individual/HUF If Distributed to any other person

10.Co-operative society In case of co-operative societies, there is no change in the existing rates of taxes. However, the surcharge of 2.5% is withdrawn from A.Y. 2006-07.

B. Special Rates 1. Long Term Capital Gains

a. On Equity shares and units Long term capital gain arising on transfer of equity shares or units in equity oriented Mutual Fund, entered into on a recognized stock exchange in India on or after 1-10-2004. For All Assessees Nil Exempt under section 10(38)

b. On other assets and equity shares, units except falling in (a) above

Income Tax on Long Term Capital Gains Resident Individual or HUF Domestic Companies 20% 20%

Non-residents (other than Cos. & Foreign Cos.) 20% NRIs (for gains u/s 115E) Any other Case 10% 20%

c. Notes:
1. If tax payable in case of Long Term Capital Assets, being listed securities or units or zero coupon bond, exceeds 10% of Capital gains before indexation, then such excess may be ignored. 2. Surcharge for A.Y. 2005-06 and A.Y. 2006-07 at the rates applicable to the assessee. Education cess @2% applicable on tax inclusive of surcharge. 3. Where tax liability arises only because of the inclusion of long term capital gains tax to be levied at 20% or 10% on the excess over the minimum exemption limit. 4. Relief from LTCG is available in respect of the amount by which the Taxable Income other than LTCG falls short of Basic Exemption Limit. 5. Rebate u/s 88 not allowed from tax payable on LTCG. 6. No deduction under Chapter VI-A (80C to 80U) 2. Short Term Capital Gains a. On Equity shares and units Short term capital gain arising on transfer of equity shares or units in equity oriented Mutual Fund, entered into on a recognized stock exchange in India on or after 1-10-2004. For All Assessees 10% plus Surcharge plus Education Cess Notes: 1. Rebate u/s 88 not allowed from tax payable on STCG. 2. No Deduction under Chapter VI-A (80C to 80U) 3. Relief from STCG available in respect of the amount by which the taxable income other than STCG, fall short of Basic Exemption Limit b. On Short Term Capital Gain At normal Rates Other than in (a) above c. 3. Minimum Alternate Tax payable by Companies As a percentage of Book Profit For A.Y. 2005-06 For A.Y. 2006-07

Tax 7.5%

Surcharge Education cess 2.50% onwards. 2%

Total 7.84125%

Tax 7.50%

Surcharge Education cess 10% 2%

Total 8.415%

4. Note: MAT Credit available in respect of MAT paid from A.Y. 2006-07
5. Advance Tax Advance Tax Obligation (If tax payable exceeds Rs. 5,000) Due Date of Instalment payable on or before 15th June 15th September 15th December 15th March Amt. Payable as a % of Tax For Cos.* 15% 30% 30% Balance For Other Assessees 30% 30% Balance

*MAT also subject to Advance Tax. Refer Circular No. 13 of 2001, [252 ITR (St) 52]

Advance Tax Obligation (In respect of Fringe Benefit Tax payable) Fringe Benefit Tax payable for quarter ended June September December March Due Date of Installment payable on or before 15th July 15th October 15th January 15th March Amt. Payable as a % of Fringe Benefit Tax payable for the quarter 100% 100% 100% 100%