Income Tax Slabs for 2007-08
admin August 6th, 2007
Direct Taxes(Slab Rate of Income Tax for Assessment year 2007-2008
PERSONAL TAX RATES
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For individuals, HUF, Association of Persons (AOP) and Body of individuals (BOI):
For the Assessment Year 2007-08
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Taxable income slab (Rs.) Rate (%)
Up to 1,10,000 NIL
Up to 1,45,000 (for women) NIL
Up to 1,95,000 (for resident individual of 65 years or above) NIL
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1,10,000 – 1,50,000 / 10%
1,50,001 – 2,50,000 / 20%
2,50,001 – 1,000,000 / 30%
1,000,001 upwards / 30* %
*A surcharge of 10 per cent of the total tax liability is applicable where the total income exceeds Rs 1,000,000.
Note : -
• Education cess is applicable @ 3 per cent on income tax, inclusive of surcharge if there is any.
• A marginal relief may be provided to ensure that the additional IT payable, including surcharge, on excess of income over Rs 1,000,000 is limited to an amount by which the income is more than this mentioned amount.
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* Personal income tax exemption limit raised to Rs 1,10000
* Income Tax exemption limit to women hiked to Rs 1,45,000
* Personal Tax exemption for senior citizens hiked to Rs 1,95,000
* Deduction in respect of medical insurance under Section 80 (D) increased to Rs 15,000 for common person and Rs 20,000 for senior citizens.
* No change in corporate income tax.
* Surcharge on Corporate income tax on companies below Rs 1 crore removed.
* Scope of MAT widened to I-T companies.
* 1% cess hiked to fund higher education.
* ESOPs to be brought under FBT.
* No change in Service Tax rate.
* Service tax extended to commercial renters.
* Service tax on Residents Welfare Associations whose members contribute more than Rs 3,000.
* Technology biz incubators exempt from service tax.
* Dividend distribution tax raised from 12.5 to 15 per cent.
* Benefits of investment in venture capital funds confined to IT, bio-technology, nano-technology, seed research, dairy among some others.
* Withdrawals by central and state governments exempted from Banking Cash Transaction Tax. The limit for individuals and HUF raised from Rs 25,000 to Rs 50,000.
* Five year tax holiday for 2, 3, 4 star hotels and convention centres with a seating capacity of 3,000 in NCT of Delhi, Gurgaon, Ghaziabad, Faridabad and Noida for Commonwealth Games.
* R&D tax concessions extended to private research bodies.