- 1. What are the income tax rates applicable for the financial year (2009-2010)and assessment year (2010-2011)?
PREVIOUS YEAR: previous year means year in which you earn any income…in
Previous year you only earn income.
ASSESSMENT YEAR: the income earned in previous year is calculated and taxed in next Year which is called ASSESSMENT YEAR.
Income Tax Rates for Assessment Year 2010-11 (F Y 2009-10)]
- Individuals and HUFs
- I. In case of individual (other than II and III below) and HUF:-
| Income Level / Slabs | Income Tax Rate | |
| I. | Where the total income does not exceed Rs.1,60,000/-. | NIL |
| ii. | Where the total income exceeds Rs.1,60,000/- but does not exceed Rs.3,00,000/-. | 10% of amount by which the total income exceeds Rs. 1,60,000/- |
| iii. | Where the total income exceeds Rs.3,00,000/- but does not exceed Rs.5,00,000/-. | Rs. 14,000/- + 20% of the amount by which th+e total income exceeds Rs.3,00,000/-. |
| iv. | Where the total income exceeds Rs.5,00,000/-. | Rs. 54,000/- + 30% of the amount by which the total income exceeds Rs.5,00,000/-. |
II. In case of individual being a woman resident in India and below the age of 65 years at any time during the previous year:-
| Income Level / Slabs | Income Tax Rate | |
| i. | Where the total income does not exceed Rs.1,90,000/- | NIL |
| ii. | Where total income exceeds Rs.1,90,000/- but does not exceed Rs.3,00,000/- | 10% of the amount by which the total income exceeds Rs.1,90,000/-. |
| iii. | Where the total income exceeds Rs.3,00,000/- but does not exceed Rs.5,00,000/-. | Rs. 11,000- + 20% of the amount by which the total income exceeds Rs.3,00,000/-. |
| iv. | Where the total income exceeds Rs.5,00,000/- | Rs.51,000/- + 30% of the amount by which the total income exceeds Rs.5,00,000/-. |
III. In case of an individual resident who is of the age of 65 (Called Senior Citizen) years or more at any time during the previous year:-
| Income Level / Slabs | Income Tax Rate | |
| i. | Where the total income does not exceed Rs.2,40,000/-. | NIL |
| ii. | Where the total income exceeds Rs.2,40,000/- but does not exceed Rs.3,00,000/- | 10% of the amount by which the total income exceeds Rs.2,40,000/-. |
| iii. | Where the total income exceeds Rs.3,00,000/- but does not exceed Rs.5,00,000/- | Rs.6,000/- + 20% of the amount by which the total income exceeds Rs.3,00,000/-. |
| iv. | Where the total income exceeds Rs.5,00,000/- | Rs.46,000/- + 30% of the amount by which the total income exceeds Rs.5,00,000/-. |
Surcharge: The surcharge on Income Tax for Individuals for total income exceeding Rs.10 lacs shall be nil.
Education Cess : 3% of the Income-tax.
Example 1. Mr. rahul has income from salary Rs. 350000,rental income Rs.50000 ,income from business Rs. 150000.comput tax payable
- If his age is below 65 years:
| Income | Rates applicable | Income tax |
| On Rs.160000 | Nil | Nil |
| On Rs.140000(300000-160000) | 10% | 14000 |
| On Rs.200000(500000-300000) | 20% | 40000 |
| On Rs.50000(550000-500000) | 30% | 15000 |
| Total income= Rs.550000 Total tax payable = Rs.69000 | ||
| ADD: education cess 3%: Rs. 2070 | ||
| Total tax payable= Rs. 71070 | ||
- If his age is above 65 years:
| Income | Rates applicable | Income tax |
| On Rs.240000 | Nil | Nil |
| onRs.60000(300000-240000) | 10% | 6000 |
| On Rs.200000(500000-300000) | 20% | 40000 |
| On Es.50000(550000-500000) | 30% | 15000 |
| Total income= Rs.550000 tax payable= Rs.59000 | ||
| ADD: education cess 3%: Rs.1770 | ||
| Total tax payable= Rs. 60770 | ||
Example 2. Ms. siya has income from salary Rs. 350000,rental income Rs.50000 ,income from business Rs. 150000.comput tax payable
- a. If her age is below 65 years
| Income | Rate applicable | Income tax |
| On Rs.190000 | Nil | Nil |
| On Rs.110000(300000-190000) | 10% | Rs.11000 |
| On Rs.200000(500000-300000) | 20% | Es.40000 |
| On Es.50000(550000-500000) | 30% | 15000 |
| Total income=Rs. 550000 total tax payable= Rs.66000 | ||
| ADD: education cess 3%: Rs. 1980 | ||
| Total tax payable= Rs. 67980 | ||
- If her age is above 65 years:
| Income | Rates applicable | Income tax |
| On Rs.240000 | Nil | Nil |
| onRs.60000(300000-240000) | 10% | 6000 |
| On Rs.200000(500000-300000) | 20% | 40000 |
| On Es.50000(550000-500000) | 30% | 15000 |
| Total income= Rs.550000 total tax payable= Rs.59000 | ||
| ADD: education cess 3%: Rs. 1770 | ||
| Total tax payable= Rs. 60770 | ||
This is very best way to show income tax rates or slabs. Every layman can understand easily with the way, you have used. keep it up…thanks
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HI FRIEND IT’S GOOD WAY TO GET SOME INFO ABOUT THE INCOME TAX BUT U MAKE A MISTAKE IN THE EXAMPLE NO.1 (If his age is above 65 years) THE AMOUNT OF TAX PAYABLE IS 61000. AND EDU CESS IS 1830 TOTAL TAXABLE AMOUNT IS 62830. SO PLZ MAKE IT CORRECT FOR OTHERS.
REGARDS
P.D.
HI FRIEND IT’S GOOD WAY TO GET SOME INFO ABOUT THE INCOME TAX BUT U MAKE A MISTAKE IN BOTH OF THE EXAMPLES.
EXAMPLE NO.1 (If his age is above 65 years) AND EXAMPLE NO.2 (If her age is above 65 years:) THE AMOUNT OF TAX PAYABLE IS 61000. AND EDU CESS IS 1830 TOTAL TAXABLE AMOUNT IS 62830. SO PLZ MAKE IT CORRECT FOR OTHERS.
REGARDS
P.D.