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Question-1 : Who is required to file Income Tax Return? |
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The following persons are under statutory obligation to file return of income by virtue of section 139(1), 4(A), 4(B), 4(C)-
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Tax Payer
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Minimum income to attract the provisions of filing return of income
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Company or firm [sec. 139(1)]
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Any income or loss.
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Other than company or firm [sec. 139(1)]
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If the income is in excess of amount not chargeable to tax (i.e., of exempted slab)
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A person in receipt of income derived from property held under a trust for charitable or religious purposes [sec. 139(4A)
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If the income (without giving exemption under section 11 or 12) exceeds the maximum amount not chargeable to tax.
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Chief executive officer of every political party [sec. 139(4B)]
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If the income (without giving exemption under section 13A) exceeds the maximum amount not chargeable to tax.
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Scientific research association, news agency, association / institution for control or supervision of a profession, institution for development of khadi and village industries, fund / institution referred to in section 10(23C)(iv), (v), educational / medical institution, trade union [sec. 139(4C)]
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If the income (without giving exemption under section 10) exceeds the maximum amount not chargeable to tax.
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University / educational institution existing solely for educational purposes and not for the purpose of profit if the aggregate annual receipt does not exceed Rs. 1 crore [sec. 139(4C)(e)]
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If income without giving exemption under section 10 exceeds the exemption limit
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Hospital/ other institution existing solely for medical purposes and not for the purpose of profit if the aggregate annual receipt does not exceed Rs. 1 crore [sec. 139(4C)(e)].
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If income without giving exemption under section 10 exceeds the exemption limit.
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Any university / college / other institution referred to in section(1)(ii)/(iii) [sec. 139(4D)]
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Any income or loss (return has to be submitted whether there is income or loss. Such return has to be submitted even if it is not required by any other provision)
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Question-2 : What will be the due date for filing my Income Tax Return?
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Situation
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Due Date
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1 Where the assessee is a company.
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October 31
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2 Where the assessee is other than a company
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October 31
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2.1 In case where accounts are required to be audited under any law.
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October 31
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2.2 Where the assessee is a working partner in a firm whose accounts are required to be audited under any law.
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October 31
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2.3 In any other case
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July 31
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Question-3 : What will be the consequences of not filing the Return within due date ?
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If the person does not file the Return of income then he may be liable to pay interest on unpaid taxes and a penalty of Rs. 5000. (Penalty is levied if Return is not filed before the end of the relevant assessment year). |
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Question-4 : What will be the consequences of not filing the Return at all ?
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If the person liable to file the income tax Return does not file the Return then he may be liable to penalties and prosecution. |
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Question-5 : What is the Assessment Year ?
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Assessment Year is the period of 12 months commencing on the 1st day of April every year. Assessment Year is practically a financial year immediately following the previous year. The income of the previous year is assessed to tax in an assessment year relevant to that previous year. |
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Question-6 : What are income tax rates for the A.Y. 20010-20011 ?
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Individuals, Hindu undivided families, AOP’s, BOI’s- |
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The tax rates applicable to individuals are also applicable to a Hindu undivided family, an association of persons, body of individuals or an artificial juridical person. The rates applicable for the assessment years 2006-07 and 2007-08 are as follows: |
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For the resident woman (who is below 65 years at any time during the previous year)- |
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Net Income Range
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Income Tax Rates[see also para 0.1-6]
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Surcharge [see Note 1]
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Education cess [see Note 3]
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Upto Rs.1,35,000
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Nil
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Nil
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Nil
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Rs.1,35,000
Rs.1,50,000
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10% of (total income minus Rs 1,35,000)
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Nil
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2% of Income Tax
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Rs.1,50,000
Rs.2,50,000
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Rs 1500+20% of (total income minus Rs 1,50,000).
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Nil
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2% of Income Tax
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Rs.2,50,000
Rs. 10, 00, 000
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Rs 21,500+30% of (total income minus Rs 2,50,000).
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Nil
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2% of Income Tax
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Above Rs 10,00,000
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Rs 2,46,500+30% of (total income minus Rs 10,00,000)
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10% of income-tax [see Note 2]
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2% of Income Tax & surcharge
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For resident senior citizen (who is 65 years or more at any time during the previous year)- |
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Net Income Range
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Income Tax Rates[see also para 0.1-6]
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Surcharge [see Note 1]
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Education cess [see Note 3]
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Up to Rs 1,85,000
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Nil
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Nil
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Nil
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Rs 1,85,000
Rs 2,50,000
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20% of (total income minus Rs 1,85,000)
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Nil
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2% of Income Tax
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Rs 2,50,000
Rs 10,00,000
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Rs 13, 000+30% of (total income minus Rs 2,50,000)
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Nil
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2% of Income Tax
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Above Rs.10, 00, 000
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Rs 2, 38,000+30% of (total income minus
Rs. 10, 00, 000
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10% of Income Tax (see Note 2)
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2% of Income Tax & surcharge
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For any other individual, every HUF/AOP/BOI/artificial juridical person- |
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Net Income Range
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Income Tax Rates[see also para 0.1-6]
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Surcharge [see Note 1]
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Education cess [see Note 3]
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Up to Rs 1,00,000
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Nil
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Nil
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Nil
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Rs 1,00,000
Rs 1,50,000
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10% of (total income minus Rs 1,00,000)
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Nil
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2% of Income Tax
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Rs 1,50,000
Rs 2,50,000
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Rs 5000+20% of (total income minus Rs 1,50,000)
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Nil
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2% of Income Tax
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Rs.2,50,000
Rs.10,00,000
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Rs 25,000+30% of (total income minus)
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Nil
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2% of Income Tax
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Above Rs 10,00,000
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Rs2,50,000+30% of (total income minus Rs 10,00,000)
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10% of Income Tax [see Note 2]
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2% of Income Tax and surcharge
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Notes: |
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Surcharge – Surcharge is 10 percent of income-tax if net income of an individual, Hindu undivided family, association of persons, or body of individuals, exceeds Rs 10,00,000, is eligible for tax rebate under section 88E, then first calculate income tax on his income, from the tax so calculated deduct tax rebate under section 88E, 10 per cent of the balancing amount is surcharge. In the case of an artificial juridical person, surcharge is 10 per cent of income-tax (i.e., income-tax minus rebate under section 88E), even if net income is less than Rs 10,00,000. |
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Marginal relief- In the case of the aforesaid person having a net income exceeding Rs 10, 00,000, the net amount available as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs 10, 00,000 by more than the amount of income that exceeds Rs 10, 00,000. |
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Educational Cess-It is 2 per cent of income tax (after rebate under section 88E) and surcharge. |
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Firms-A firm is taxable at the rate of 30 percent for the assessment years 2006-07 and 2007-08 [see also para 21-6] |
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Surcharge-10 per cent of income tax [i.e. income tax after rebate under section 88E]. |
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Education Cess-It is 2 per cent of income tax and surcharge. |
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Companies-For the assessment years 2006-07 and 2007-08 the following income tax rates are applicable: |
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For the assessment years 2006-07 and 2007-08 the following income tax rates are applicable: |
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Company
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Rate of income tax (per cent) [see also para 0.1-6]
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In the case of a domestic company.
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30
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In the case of a foreign company:
• Royalty received from Government or an Indian concern after March 30,1961, but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government.
• Other Income.
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50
40
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Surcharge- Surcharge is applicable at the rates given below- |
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Domestic Company
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10%
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Non Domestic Company
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2.5%
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Note: Surcharge is applicable at the rate given above on (income tax minus rebate under section 88E).
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Education Cess –It is 2 per cent of income tax and surcharge for the assessment years 2006-07 and 2007-08.
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Minimum Alternate Tax-The following rate of minimum alternate tax shall be applicable.
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Assessment year 2006-07
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Assessment year 2007-08
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IT
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SC
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EC
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Total
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IT
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SC
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EC
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Total
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Domestic Company
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7.5
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0.75
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0.165
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8.415
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10
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1
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0.22
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11.22
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Foreign Company
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7.5
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0.1875
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0.15375
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7.84125
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10
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0.25
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0.205
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10.455
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Cooperative Societies- The following rates are applicable to a cooperative society for the assessment years years 2006-07 and 2007-08- |
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| Net Income range |
Rate of income tax (per cent) [see also para 0.1-6] |
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Up to 10,000
Rs 10,000 – Rs 20,000
Rs 20000 and above
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10
20
30
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Surcharge-Surcharge is not applicable for the assessment years 2006-07 and 2007-08. |
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Education cess-It is 2 per cent of income tax. |
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Local Authorities-Local authorities are taxable at the rate of 30 percent. |