The
government of India imposes an income tax on taxable income of
individuals, Hindu Undivided Families (HUFs), companies, firms,
co-operative societies and trusts (identified as body of individuals and
association of persons) and any other artificial person. Levy of tax is
separate on each of the persons. The levy is governed by the Indian
Income Tax Act, 1961. The Indian Income Tax Department is governed by
the Central Board for Direct Taxes(CBDT) and is part of the Department
of Revenue under the Ministry of Finance Govt. of India. Tax Consulting Services India is
a key source of funds that the government uses to fund its activities
and serve the public. There are close to 35 million income tax payers in
India.
Everyone
whose income exceeds the ;maximum amount, which is not chargeable to
the income tax, is an assesse, 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, 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 changeability 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 (%) (as per budget 2012)
- Up to 2,00,000 = 0%,
- 2,00,001 – 5,00,000 = 10%,
- 5,00,001 – 10,00,000 = 20%,
- 10,00,001 upwards = 30%,
- Up to 2,50,000 (for resident individual of 60 years or above)= 0
- Up to 5,00,000 (for very senior citizen of 80 years or above)= 0
- Education cess is applicable @ 3 per cent on income tax, surcharge = NA
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