Rates of Income Tax (F.Y. 2003-2004)

 

A)         For Individuals, HUF, AOP, BOI

 

 

Income                                                          Tax

 

- Up to 50,000                                                                                      NIL

 

- 50,000 – 60,000                                                                                10%

 

- 60,000 – 150,000                                                                              20% of amount exceeding 60,000 + 1,000                                   

 

- 1, 50,000 and above                                                                         30% of amount exceeding

1, 50,000 +19,000

 

Surcharge

 

Surcharge @ 10% of tax, only if the taxable income exceeds Rs.8, 50,000.

 

B) Firms / Companies (Domestic)

 

Tax @ 35% of taxable income.

 

Surcharge

 

2.5% of tax payable.

 

C) Capital Gains

 

(i)                   Long Term Capital Gains @ 20%

 

(ii)                 Short Term Capital Gains is taxable at normal tax rates

(iii)                Long Term Capital Gains in respect of Shares, Securities, and units are taxable @ 20% with indexation
benefits and @10% without giving benefits of indexation.

 

D) Standard Deductions

 

(i) House Property Income u/s 24 (a)

 

-          30% of Net Annual Value

 

-         Net Annual Value means gross Annual Value u/s 23(1), minus municipal Tax, Minus Vacancy allowance / Unrealized Rent.

 

 

(ii) Salaries U/s 16(ii)

 

Salaries                                                           Amount of Deduction

 

-1.50 Lakh or less                                              40% of Gross Salaries or 30,000, which even, is less

 

- More than 1.50 Lakh but                                   30,000

  Up to 5 Lakh

 

- More than 5 Lakh                                             20,000

 

E) Rebates

 

(i) Under section 88

                                                                                     

(a) Gross Qualifying Amount

 

Aggregate of followings

 

(i)                   LIC (up to 20% of sum Assured)  

(ii)                 Non-Commutable deferred annuity. 

(iii)                Employee’s contribution to P.F. 

(iv)                P.P.F. 

(v)                  Approved superamuation Fund  

(vi)                Post office 10 year or 15 year deposit under Post office saving Bank (CTD) Rules, 1959 

(vii)               N.S.S. 1992 

(viii)             N.S.C.  

(ix)               U.L.I.P. of UTI / LIC 

(x)                 Mutual Funds / UTI up to 10,000 (equity linked saving scheme) Housing Loan up to 20,000 

(xi)               Contribution to notified Pension Fund. 

(xii)              Amount Paid as Tuition Fees up to 12,000 per child for maximum of 2 children. 

(xiii)      Principal Repayment of

 

 

(b) Net Qualifying Amount

 

Rs. 1,00,000. Rs. 70,000 to be invested in the (a) above and balance Rs 30,000 to be invested in Infrastructure bonds i.e. in the Ratio of 70: 30.

 

(c ) Amount of Rebate

 

(i)                   30% of net Qualifying Amount if out of total Income not less than 90% Income is from Salaries and the total income does not exceed Rs 1,00,000.00.

 

(ii)                 20% if the Income is up to 1, 50,000, if case falls other than (i) above.

 

(iii)                15% of Net Qualifying Amount if the Income exceeds 1, 50,000 but up to 5, 00,000.

 

(iv)                No Rebate of Gross total Income exceeds 5.00 Lakh

 

(2) Under Section 88C (Woman)

 

Up to Rs. 5,000 and the age should be below 65 years

 

(3) Under Section 88B (Senior Citizen)

 

Up to Rs. 20,000 the person should be 65 year and more during any time of previous year.