Home > Direct Tax > New Income Tax Rate proposed in Direct Taxes Code, 2009

New Income Tax Rate proposed in Direct Taxes Code, 2009

IN Case Of Individual

where the total income does not

exceed Rs.1,60,000

 

Nil;
 where the total income exceeds of the amount by

Rs.1,60,000 but does not exceed of Rs.10,00,000

10 per cent
where the total income exceeds of the

Rs.10,00,000 but does not exceed of

Rs.25,00,000

 

20 per cent
 where the total income exceeds Rs.25,00,000 

 

30 per cent

 

In the case of every individual, being a woman resident in India, and below

the age of sixty-five years at any time during the financial year,—

where the total income does not

exceed Rs. 1,90,000

NIL
where the total income exceeds of the amount by

Rs.1,90,000 but does not exceed of Rs.10,00,000

10 per cent
where the total income exceeds of the

Rs.10,00,000 but does not exceed of

Rs.25,00,000

 

20 per cent
where the total income exceeds Rs.25,00,000 

 

30 per cent

 

 

(III) In the case of every individual, being a resident in India, who is of the age of

sixty-five years or more at any time during the financial year,—

 

 

where the total income does not

exceed Rs. 2,40,000

NIL
where the total income exceeds of the amount by

Rs.2,40,000 but does not exceed of Rs.10,00,000

10 per cent
where the total income exceeds of the

Rs.10,00,000 but does not exceed of

Rs.25,00,000

 

20 per cent
where the total income exceeds Rs.25,00,000 

 

30 per cent

 

In the case of a company:-

Rates of income-tax

On the whole of the total income 25 per cent of the total income;

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Categories: Direct Tax
  1. sourabh13
    August 27, 2009 at 12:17 pm

    Don’t you think this proposal will demotivate the investment in ULIPS,Insurance & other 80C blocks.Cause paying tax of something 34000/- on Income of 5 lacs is good than investing fro 3 years

  2. chitrank
    August 27, 2009 at 2:02 pm

    yes sourabh, the ulips and other tax saving instruments brought into the market by various cos are surely going to take the hit.
    Although Insurnce has become necessity nowadays therefore i dont think it will be affected much.

  3. sourabh13
    August 27, 2009 at 2:11 pm

    Accepted that Insurance is a need now a days but not upto the extent of 1 lac I guess, 10000 ULIP will make sure for investment as well as insurance need. Leaving Insurance apart otherwise the investments will be highly neglected. Making tax exemption from 160000-10 lac would rather be done with help of 80C by extending it’s limit to says 3lacs.Because liquidity is a concern and if you have to pay only 84000/- on 10 lac income who is going to invest in 3 years lock in period schemes & accounts?

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