Monday, 10 November 2014

Income Chargeable to Tax

Everyone exceeds the maximum amount which is not chargeable to the income tax is an assesse, and shall be chargeable to the income tax at the rate or rates prescribed under the finance act for the relevant assessment year, shall be determined on basis of his residential status.
Income tax is a tax payable, at the rate enacted by the Union Budget (Finance Act) for every Assessment Year, on the Total Income earned in the Previous Year by every Person.The chargeability is based on nature of income, i.e., whether it is revenue or capital. The rates of taxation of income are-:
Income Tax Rates/Slabs Rate (%) (as per budget 2012)
→ Up to 2,00,000 = 0%,
→ 2,00,001 – 5,00,000 = 10%,
→ 5,00,001 – 10,00,000 = 20%,
→ 10,00,001 upwards = 30%,
Up to 2,50,000 (for resident individual of 60 years or above)= 0,
Up to 5,00,000 (for very senior citizen of 80 years or above)= 0.
Education cess is applicable @ 3 per cent on income tax, surcharge = NA
Detailed Easy to understand "step-by-step" GUIDE coming soon. Keep watching. It will be interesting , easy to follow and fully updated - loaded with latest guidelines. See for IT amendments for particular assessment year at income tax notifications.

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