Income tax rate – financial year 2010-2011 after budget

Income tax rate slab is changed in the recent budget by finance minister Pranab Mukherjee. The main highlights on income tax are.

1. Tax  slab revised
2. Surcharge is reduced to 7.5 % from 10 % for domestic company
3. extended income tax exemption to investment in infrastructure bonds by Rs 120,000.00
4. Limits for turnover over which accounts need to be audited enhanced to Rs. 60lakh for businesses and to Rs. 15 lakh for professions.

Income tax Rate for Individual, Hindu   undivided family, Association of Persons, Body of individual

Income Slab	Income-tax rates	Education cess	Secondary and higher education cess
Up to 160000	Nil	Nil	Nil
160001 to 500000	10 % of income above 160000	2%	1%
500001 to 800000	Rs 34000+20 % of income above 500000	2%	1%
Above 800000	94000+30% of income above 800000	2%	1%

Resident women below 65 years at any time during the previous year

Income Slab	Income-tax rates	Education cess	Secondary and higher education cess
Up to 190000	Nil	Nil	Nil
190001 to 500000	10 %  of income above 190000	2%	1%
500001 to 800000	Rs 31000+20 % of income above 500000	2%	1%
Above 800000	91000+30% of income above 800000	2	1

Resident Senior Citizen age 65 years at any time during the previous year

Net income range	Income-tax rates	Education cess	Secondary and higher education cess
Up to 240000	Nil	Nil	Nil
240001 to 500000	10 %  of income above 240000	2%	1%
500001 to 800000	Rs 26000+20 % of income above 500000	2%	1%
Above 800000	86000+30% of income above 800000	2%	1%

 Income tax rate for Partnership firm

Income-tax rates	Surcharge	Education cess	Secondary and higher education cess
30%	0	2%	1%

In come tax rate for company

1. Domestic company: – 30 %
2. Company other than domestic company

 50 % in the following cases

Royalties received from govt or an Indian concern in pursuance of an agreement made by it with the government or the Indian concern after the 31^st day of March 1961 but before the first day of 1976

Or

Fee for rendering technical services received from government or an Indian concern in pursuance of an agreement made by it with the govt: or the Indian concern after 29^th day of februry 1964 but before 1^st day of april 1976

on the balance, if any of the total income  @ 40 %

Surcharge in the case of company

Domestic company : surcharge is applicable if income exceeding  1 crore @ 7.5%

Other than domestic company : total income exceeding 1 crore @ 2.5 %

Provided that in case of every company having total income exceeding one crore rupees, the total amount payable as income tax and surcharges on such income shall not exceed the total amount payable as income tax on a total income of one crorerupees by more than the amount of income that exceeds one crore rupees

Co –Operative societies

Net income range	Income-tax rates	Education cess	Secondary and higher education cess
Up to 10000	10%	2%	1%
10000 to 20000	20%	2%	1%
20000 and above	30%	2%	1%

No surcharge is applicable to co-operative societies

Local Authorities

Taxable at the rate of 30 %, No surcharge is applicable for Local authorities, education cess2 % Secondary higher education cess is 1%

Related posts:

1. Income tax rates in India 2009-10
2. What is Tax collection at source-TCS?

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