Tax Rates in India are changeable pertaining to the type of income on which the tax is imposed. The tax rate in India depends on several factors, such as type of the income, source of the income and the individual.
Personal tax rates in India:
- For taxable income above Rs. 0 but less than Rs. 2,50,000, rate of tax deduction is 0%
- For taxable income less than Rs. 3,00,000 in case of an individual who is above the age of 60 and below the age of 80 years and residing in the country, rate of tax deduction is 0%
- For taxable income above Rs. 2, 50,000 but less than Rs. 5, 00,000, rate of tax deduction is 10%.
- For taxable income above Rs. 5, 00,000 but less than Rs. 10,00,000, rate of tax deduction is 20%.
- For taxable income above Rs. 10, 00,000, rate of tax deduction is 30%. and a surcharge of 10% of the entire income tax liability added in case the income exceeds 1 Crore
- The cess on education is charged at the rate of 3% on the income tax
- There are many exemptions and rebates on income tax in India.
- For taxable income less than Rs. 5,00,000 in case of an individual (Super Senior Citizen) who is above the age of 80 years and residing in the country, rate of tax deduction is 0%
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Domestic Corporate tax rates in India:
- For Domestic Corporations the effective tax rate is 30%
- Attention must also be given on the fact that all of the companies formed in India are regarded as Indian domestic companies, even in.
- The case of ancillary units with mother concerns in foreign countries.
- Attention must be given on the factor that if the taxable income is more than Rs. 1 crore, then a surcharge of 5% of the tax on Income is levied & if the taxable income is more than Rs. 10 Crore ,then a surcharge of 10 % of the tax on income is levied.
Foreign Companies tax rates in India:
- For dividends 20% in case of non-treaty foreign companies and 15% for companies under the treaty based in United States.
- For technology based services in case of non-treaty foreign companies and 20% for companies under the treaty based in United States.
- For royalties 30% in case of non-treaty foreign companies and 20% for companies under the treaty based in United States.
- For interest gains 20% in case of non-treaty foreign companies and 15% for companies under the treaty based in United States.
- For other kinds of income and gains 55% in case of non-treaty foreign companies and 55% for companies under the treaty based in United States.
- Attention must be given on the several of the tax treaties India signed with the other countries and also the various encouraging tax.
- Rates
- Attention must be given on levying inter corporate rates in case the holding is minimum.
- Attention must be given on the fact that the sanctions of the tax authorities on tax withholding.
Tax Rates India 2014-15
For the Financial Year 2014-15, the income tax rates are as follows. If the income falls in any of the slab given below one has to pay tax as per the rates specified.
For Senior Citizen (above 60 years but below 80)
Slab : Rs. 0 to Rs. 3,00,000 - Tax rate : Nil
Rs. 3,00,000 to Rs. 5,00,000 - 10% tax
Rs. 5,00,000 to Rs. 10,00,000 - 20% tax
Rs. 10,00,000 and above - 30% tax
For all other Individual Tax Payers
Slab: Rs. 0 to Rs. 2,50,000 - Tax rate : Nil
Rs. 2,50,001 to Rs. 5,00,000 - 10% tax
Rs. 5,00,001 to Rs. 10,00,000 - 20% tax
Rs. 10,00,000 and above - 30% tax
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