Income Of Previous Year Is Not Taxable In The Immediately Following Assessment Year

Income Of Previous Year Is Not Taxable In The Immediately Following Assessment Year

There are certain situation in which income is to be taxed in the same year in which income was earned:-

Situation 1 : Shipping business of non resident ( S. 172 )

If all the following conditions are satisfied than section 172 is applicable

1. Assessee is non resident
2. He owns a ship or ship is chartered by him
3. The ship carries passenger, live stock, mail or goods and all are shipped at port in India
4. The non resident assessee may or may not have an agent or representative in India.

Deemed income

If all of the above conditions are satisfied than 7.5 % of amount received or receivable by non resident, towards fright, fare, demur-rage charges, handling charges etc.. , shall be deemed to be the income of non resident.

Situation 2: Person living India and he/she has no present intention of returning to India (s.174).

Situation 3: Association of person or body of individual, formed or established for a particular event and purpose and likely to be dissolved in the same year in which the same was established. (s.174A)

Situation 4: Person likely to transfer property to avoid tax (s.175)

Situation 5: Discontinued Business (s.176)

Income Tax Slabs & Rates for Assessment Year 2015-16

Income Tax Slabs & Rates for Assessment Year 2015-16:-

1. Individual resident aged below 60 years (i.e. born on or after 1st April 1955) or any NRI / HUF / AOP / BOI / AJP*

Income Tax :

	Income Slabs	Tax Rates
i.	Where the total income does not exceed Rs. 2,50,000/-.	NIL
ii.	Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-.	10% of amount by which the total income exceeds Rs. 2,50,000/-. Less ( in case of Resident Individuals only ) : Tax Credit u/s 87A - 10% of taxable income upto a maximum of Rs. 2000/-.
iii.	Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.	Rs. 25,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-.
iv.	Where the total income exceeds Rs. 10,00,000/-.	Rs. 125,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)

Education Cess : 3% of the total of Income Tax and Surcharge.

* Abbreviations used :
   NRI - Non Resident Individual; HUF - Hindu Undivided Family; AOP - Association of Persons; BOI - Body of Individuals; AJP - Artificial Judicial Person.

2. Individual resident who is of the age of 60 years or more but below the age of 80 years at any time during the previous year (i.e. born on or after 1st April 1934 but before 1st April 1954) 

Income Tax :

1. 	Income Slabs	Tax Rates
   i.	Where the total income does not exceed Rs. 3,00,000/-.	NIL
   ii.	Where the total income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/-	10% of the amount by which the total income exceeds Rs. 3,00,000/-. Less : Tax Credit u/s 87A - 10% of taxable income upto a maximum of Rs. 2000/-.
   iii.	Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-	Rs. 20,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-.
   iv.	Where the total income exceeds Rs. 10,00,000/-	Rs. 120,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

   Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
   Education Cess : 3% of the total of Income Tax and Surcharge.
   
   

   3. Individual resident who is of the age of 80 years or more at any time during the previous year (i.e. born before 1st April 1934)

   Income Tax :

   	Income Slabs	Tax Rates
   i.	Where the total income does not exceed Rs. 5,00,000/-.	NIL
   ii.	Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-	20% of the amount by which the total income exceeds Rs. 5,00,000/-.
   iii.	Where the total income exceeds Rs. 10,00,000/-	Rs. 100,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

   Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
   Education Cess : 3% of the total of Income Tax and Surcharge. 

4. Co-operative Society

   Income Tax :
   

   	Income Slabs	Tax Rates
   i.	Where the total income does not exceed Rs. 10,000/-.	10% of the income.
   ii.	Where the total income exceeds Rs. 10,000/- but does not exceed Rs. 20,000/-.	Rs. 1,000/- + 20% of income in excess of Rs. 10,000/-.
   iii.	Where the total income exceeds Rs. 20,000/-	Rs. 3.000/- + 30% of the amount by which the total income exceeds Rs. 20,000/-.

   Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
   Education Cess : 3% of the total of Income Tax and Surcharge.

5. Firm

   Income Tax : 30% of total income.
   Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
   Education Cess : 3% of the total of Income Tax and Surcharge.

6. Local Authority

   Income Tax : 30% of total income.
   Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
   Education Cess : 3% of the total of Income Tax and Surcharge.

7. Domestic Company

   Income Tax : 30% of total income.
   Surcharge : The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge
   
   • At the rate of 5% of such income tax, provided that the total income exceeds Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
   • At the rate of 10% of such income tax, provided that the total income exceeds Rs. 10 crores.
   Education Cess : 3% of the total of Income Tax and Surcharge.

8. Company other than a Domestic Company

   Income Tax :
   
   • @ 50% of on so much of the total income as consist of (a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or (b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, and where such agreement has, in either case, been approved by the Central Government.
   • @ 40% of the balance
   Surcharge :
   The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge as under
   
   • At the rate of 2% of such income tax, provided that the total income exceeds Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
   • At the rate of 5% of such income tax, provided that the total income exceeds Rs. 10 crores.
   Education Cess : 3% of the total of Income Tax and Surcharge.

Marginal Relief : When an assessee's taxable income exceeds Rs. 1 crore, he is liable to pay Surcharge at prescribed rates mentioned above on Income Tax payable by him. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 1 crore by more than the amount of increase in taxable income.

Example :

In case of an individual assesseee (< 60 years) having taxable income of Rs. 1,00,01,000/-

1.	Income Tax	Rs. 28,30,300
2.	Surcharge @10% of Income Tax	Rs. 2,83,030
3.	Income Tax on income of Rs. 1 crore	Rs. 28,30,000
4.	Maximum Surcharge payable (Income over Rs. 1 crore less income tax on income over Rs. 1 crore)	Rs. 700/- (1000 - 300)
5.	Income Tax + Surcharge payable	Rs. 28,31,000
6.	Marginal Relief in Surcharge	Rs. 2,82,330/- (2,83,030 - 700)

No change in existing Tax Rates (as shown above) has been proposed in the Interim Budget for the Fiscal Year 2014-15.

Gains Tax Rates for A.Y.2014-15

Gains Tax Rates for A.Y.2014-15 (F.Y.2013-14)