Rates of Income-tax
In respect of income of all categories of assessees liable to tax for the assessment year 2009-2010, the rates of incometax have been specified in Part I of the First Schedule to the Bill. These are the same as those laid down in Part III of the First Schedule to the Finance Act, 2008, for the purposes of computation of “advance tax”, deduction of tax at source from “Salaries” and charging of tax payable in certain cases. (1) Surcharge on income-tax— It has also been specified therein that in the case of individuals, Hindu undivided families, association of persons and body of individuals having total income exceeding Rs. 10,00,000/-, the tax so computed shall be enhanced by a surcharge at the rate of ten per cent. for purposes of the Union. In the case of artificial juridical person, the tax so computed shall be enhanced by a surcharge of ten per cent. on all levels of income. In the case of local authority and co-operative society, no surcharge is levied. In the case of every firm and domestic company, surcharge at the rate of ten per cent. shall be levied only in cases where the total income exceeds one crore rupees. In case of every company, other than a domestic company, surcharge at the rate of two and one-half per cent. shall be levied only in cases where the total income exceeds one crore rupees. However, marginal relief shall be allowed in all these cases to ensure that the additional amount of income-tax payable, including surcharge, on the excess of income over one crore rupees is limited to the amount by which the income is more than one crore rupees. Also, in the case of every company having total income chargeable to tax under section 115JB of the Income Tax Act and where such income exceeds one crore rupees, marginal relief shall be provided. (2) Surcharge on fringe benefit tax— In respect of fringe benefits chargeable to tax under section 115WA of the Income Tax Act, for assessment year 2009-10, surcharge shall be levied as follows- (a) in the case of every association of persons and body of individuals, at the rate of ten per cent. of the amount of tax, where the total fringe benefits exceed ten lakh rupees. (b) in the case of every firm, artificial juridical person and domestic company, at the rate of ten per cent. of the amount of tax, irrespective of the amount of fringe benefits. (c) in the case of every company, other than a domestic company, at the rate of two and one-half per cent. of the amount of tax, irrespective of the amount of fringe benefits. (3) Education cess— For assessment year 2009-10, additional surcharge called the “Education Cess on Income-tax” and “Secondary and Higher Education Cess on income-tax” shall continue to be levied for the purposes of the Union at the rate of two per cent. and one per cent. respectively, on the amount of tax computed, inclusive of surcharge, in all cases. No marginal relief shall be available in respect of such Cess. I. Rates of income-tax in respect of income liable to tax for the assessment year 2009-10
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