FIRST SCHEDULE
[See sections 2(4), 15(1), 62(1), 211(3), 230(11),
314(120)(K) and (158)]
Rates of Income-tax
PART I
The liability to income tax, of any person, in respect of his total income of a financial year, which does not include income from any special source, shall be the amount of income tax calculated at the rate specified, and in the manner provided, in the following Paragraph A to Paragraph F :
Paragraph A
(I) In the case of every individual, other than the individual referred to in item (II) of this Paragraph, Hindu undivided family or artificial juridical person, not being a case to which any other Paragraph of this Part applies,—
Rates of income-tax
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(1) where the total income does not exceed Rs. 2,00,000 |
Nil ;
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(2) where the total income exceeds Rs. 2,00,000 but does not exceed Rs. 5,00,000 |
10 per cent. of the amount by which the total income exceeds Rs. 2,00,000 ;
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(3) where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 |
Rs. 30,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 5,00,000 ;
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(4) where the total income exceeds Rs. 10,00,000 |
Rs. 1,30,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 10,00,000 ;
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(II) In the case of every individual, being a resident in India, who is of the age of sixty-five years or more at any time during the financial year—
Rates of income-tax
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(1) where the total income does not exceed Rs. 2,50,000 |
Nil ;
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(2) where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000 ; |
10 per cent. of the amount by which the total income exceeds Rs. 2,50,000
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(3) where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 |
Rs. 25,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 5,00,000 ;
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(4) where the total income exceeds Rs. 10,00,000 |
Rs. 1,25,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 10,00,000 ;
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Paragraph B
(I) In the case of every co-operative society—
Rates of income-tax
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(1) where the total income does not exceed Rs. 10,000 |
10 per cent. of the total income ;
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(2) where the total income exceeds Rs. 10,000 but does not exceed Rs. 20,000 |
Rs. 1,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 10,000 ;
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(3) where the total income exceeds Rs. 20,000 |
Rs. 3,000 plus 30 per cent of the amount by which the total income exceeds Rs. 20,000.
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(II) In the case of every other society—
Rate of income-tax
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On the whole of the total income |
30 per cent. |
Paragraph C
In the case of every non-profit organisation,—
Rate of income-tax
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(i) where the total income does not exceed Rs. 1,00,000 |
Nil ;
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(ii) where the total income exceeds Rs. 1,00,000 |
15 per cent. of the amount by which the total income exceeds Rs. 1,00,000
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Paragraph D
In the case of every unincorporated body,—
Rate of income-tax
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On the whole of the total income |
30 per cent. |
Paragraph E
In the case of a company,—
Rate of income-tax
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On the whole of the total income |
30 per cent. |
PART II
In the cases to which Paragraph A of Part 1 applies, where the person has, in the financial year, any net agricultural income exceeding five thousand rupees, in addition to total income from ordinary sources and the total income exceeds the threshold limit, then,—
(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after the threshold limit but without being liable to tax], only for the purpose of charging income-tax in respect of the total income ; and
(b) the income-tax chargeable shall be calculated as follows :
(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in the said Paragraph A, as if such aggregate income were the total income ;
(ii) the net agricultural income shall be increased by the amount of threshold limit, and the amount of income-tax shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Paragraph A, as if the net agricultural income as so increased were the total income ;
(iii) the amount of income-tax determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax in respect of the total income.
PART III
Where the total income of a person specified in column (2) of the Table given below includes income from any special source specified in the corresponding entry in column (3) of the said Table, the liability to income-tax of the person shall be the aggregate of—
(a) the amount calculated at the rate specified in the corresponding entry in column (4) of the said Table on the income specified in the corresponding entry in column (3) ; and
(b) the amount of income-tax calculated in accordance with the provisions of Part I and Part II in respect of the balance of his total income, that is, the "total income from ordinary sources" :
Table
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Serial Number |
Person |
Nature of income |
Rate of tax |
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(1) |
(2) |
(3) |
(4) |
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(1) |
Non-resident |
(a) On investment income by way of— |
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(i) interest |
20 per cent. |
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(ii) dividends on which distribution tax has not been paid under section 109. |
20 per cent. |
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(iii) Profit distributed by a fund on which tax on distributed income has not been paid under section 110 |
20 per cent. |
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(b) On income by way of royalty or fees for technical services |
20 per cent. |
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(c) On income by way of insurance including reinsurance. |
20 per cent. |
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(2) |
Non-resident sports person, who is not a citizen of India |
On income by way of— |
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(i) participation in India in any game [other than a game the winnings where from are taxable under item (ii) or item (iii) of serial number 4] or sport ; |
10 per cent. |
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(ii) advertisement ; or |
10 per cent. |
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(iii) contribution of articles relating to any game or sport in newspapers, magazines or journals in India. |
10 per cent. |
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(3) |
Non-resident sports association or institution |
On income by way of guarantee money in relation to any game or sports played in India. |
10 per cent. |
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(4) |
Any assessee whether resident or non-resident |
Income by way of winnings from— |
30 per cent. |
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(i) any lottery or crossword puzzle ; |
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(ii) race, including horse race (not being the income from the activity of owning and maintaining race horses) ; or |
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(iii) card game or any other game or gambling or betting |
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The First Schedule of the Code seeks to provide various rates for calculating income-tax payable on total income. The Schedule is divided into three Parts. Part I provides rates of income-tax on total income from sources other than a special source. The income of a society, other than a co-operative society, unincorporated body, local authority, and a company is proposed to be taxed at a flat rate whereas, tax slabs have been provided for individual, co-operative society, Hindu undivided family and artificial juridical person. Further, for resident individuals, different slabs have been provided for women tax-payers and senior citizens as relief is proposed to be provided to them vis-a-vis other resident tax-payers. The Schedule also provides for a flat rate of tax for a non-profit organisation after a threshold limit.
Part II of the Schedule seeks to provide the method of aggregation of agricultural income for rate purposes in a case where the person to whom Part I is applicable, has net agricultural income during a year exceeding 5000 rupees, and total income exceeds the threshold limit.
Part III seeks to provide rates of taxation if the person has income from any special source. The rates listed pertain to a non-resident or where the person, whether resident or non-resident, has income by way of lottery, crossword puzzle, race, including horse race or card game or any other game or gambling or betting.
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