Rates of
income-tax in respect of income liable to tax for the assessment year 2013-14
DIRECT TAXES
A. RATES OF INCOME-TAX
I. Rates of income-tax in respect of income
liable to tax for the assessment year 2013-14.
In respect of income of all categories of assessees
liable to tax for the assessment year 2013-14, the rates of income-tax 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, 2012,
for the purposes of computation of “advance tax”, deduction of tax at source
from “Salaries” and charging of tax payable in certain cases.
Surcharge shall be levied in respect of income
liable to tax for the assessment year 2013-14, in the following cases:-
(a) in the case of a domestic company having total
income exceeding one crore rupees, the amount of income-tax computed shall be
increased by a surcharge for the purposes of the Union calculated at the rate
of five per cent. of such income tax.
(b) in the case of a company, other than a domestic
company, having total income exceeding one crore rupees, the amount of
income-tax computed shall be increased by a surcharge for the purposes of the Union
calculated at the rate of two per cent. of such income tax.
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, 1961
(hereinafter referred to as ‘Income-tax Act’) and where such income exceeds one
crore rupees, surcharge at the rates mentioned above shall be levied and
marginal relief shall also be provided.
(2) Education Cess -
For assessment year 2013-14, additional surcharge
called the “Education Cess on income-tax” and “Secondary and Higher Education
Cess on income-tax” shall continue to be levied 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.
II. Rates for deduction of income-tax at source
during the financial year 2013-14 from certain incomes other than “Salaries”.
The rates for deduction of income-tax at source
during the financial year 2013-14 from certain incomes other than “Salaries”
have been specified in Part II of the First Schedule to the Bill. The rates for
all the categories of persons will remain the same as those specified in Part
II of the First Schedule to the Finance Act, 2012, for the purposes of
deduction of income-tax at source during the financial year 2012-13, except
that in case of certain payments made to a non-resident (other than a company )
or a foreign company, in the nature of income by way of royalty or fees for
technical services, the rate shall be twenty-five percent of such income.
(1) Surcharge -
The amount of tax so deducted, in the case of a
non-resident person (other than a company), shall be increased by a surcharge
at the rate of ten per cent. of such tax, where the income or the aggregate of
such incomes paid or likely to be paid and subject to the deduction exceeds one
crore rupees . The amount of tax so deducted, in the case of a company other
than a domestic company, shall be increased by a surcharge at the rate of two
per cent. of such tax, where the income or the aggregate of such incomes paid
or likely to be paid and subject to the deduction exceeds one crore rupees but
does not exceed ten crore rupees and it shall be increased by a surcharge at
the rate of five per cent. of such tax, where the income or the aggregate of
such incomes paid or likely to be paid and subject to the deduction exceeds ten
crore rupees.
No surcharge will be levied on deductions in other
cases.
(2) Education Cess -
“Education Cess on income-tax” and “Secondary and
Higher Education Cess on income-tax” shall continue to be levied at the rate of
two per cent. and one per cent. respectively, of income tax including surcharge
wherever applicable, in the cases of persons not resident in India including
companies other than domestic company.
III. Rates for deduction of income-tax at source
from “Salaries”, computation of “advance tax” and charging of income- tax in
special cases during the financial year 2013-14.
The rates for deduction of income-tax at source
from “Salaries” during the financial year 2013-14 and also for computation of
“advance tax” payable during the said year in the case of all categories of
assessees have been specified in Part III of the First Schedule to the Bill.
These rates are also applicable for charging income-tax during the financial
year 2013-14 on current incomes in cases where accelerated assessments have to
be made , for instance, provisional assessment of shipping profits arising in
India to non-residents, assessment of persons leaving India for good during the
financial year, assessment of persons who are likely to transfer property to
avoid tax, assessment of bodies formed for a short duration, etc.
The salient features of the rates specified in the
said Part III are indicated in the following paragraphs-
A. Individual, Hindu undivided family,
association of persons, body of individuals, artificial juridical person.
Paragraph A of Part-III of First Schedule to the
Bill provides following rates of income-tax:-
(i) The
rates of income-tax in the case of every individual (other than those mentioned
in (ii) and (iii) below) or Hindu undivided family or every association of
persons or body of individuals , whether incorporated or not, or every
artificial juridical person referred to in sub-clause (vii) of clause (31) of
section 2 of the Income-tax Act (not being a case to which any other Paragraph
of Part III applies) are as under :-
(ii) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year,-
(iii) in the case of every individual, being a resident in India, who is of the age of eighty years or more at anytime during the previous year,-
The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall be increased by a surcharge at the rate of ten percent. of such income-tax in case of a person having a total income exceeding one crore rupees .
However, the total amount payable as income-tax and
surcharge on total income exceeding one crore rupees shall not exceed the total
amount payable as income-tax on a total income of one crore rupees by more than
the amount of income that exceeds one crore rupees.
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