Income Tax Rates - for the F.Y 2008-09

• The direct taxes rates for the financial year 2008-2009 (Assessment year 2009-2010)

Threshold limit of exemption from personal income tax in the case of all assesses is Rs.150,000. The threshold limit for a resident woman assessee is Rs.180,000, while for a resident senior citizen is Rs.225,000.

I. For Individuals (includes nonresidents), HUF, AOP and BOI 1. From 1,50,000 to 3,00,000 : 10% of amount greater than Rs. 1,50,000. 2. From 3,00,000 to 5,00,000 : 20% of amount greater than Rs. 3,00,000 plus Rs. 15,000. 3. Above 5,00,000 : 30% of amount greater than Rs. 5,00,000 plus Rs. 55,000.

II. For Resident Woman (except senior citizen) 1. From 1,80,000 to 3,00,000 : 10% of amount greater than Rs. 1,80,000. 2. From 3,00,000 to 5,00,000 : 20% of amount greater than Rs. 3,00,000 plus Rs. 12,000. 3. Above 5,00,000 : 30% of amount greater than Rs. 5,00,000 plus Rs. 52,000.

III. For Resident Senior Citizen 1. From 2,25,000 to 3,00,000 : 10% of amount greater than Rs. 2,25,000. 2. From 3,00,000 to 5,00,000 : 20% of amount greater than Rs. 3,00,000 plus Rs. 7,500. 3. Above 5,00,000 : 30% of amount greater than Rs. 5,00,000 plus Rs. 47,500. Note: For nonresident senior citizen the exemption limit is Rs. 1,50,000.

Education Cess The total tax amount (including surcharge) is subject to an education cess at 3%.

Surcharge A 10% surcharge (tax on tax) is applicable if the net income (after all the non-taxable allowances and deductions) is above Rs. 10 lakh. This surcharge is subject to marginal relief. The net income tax and surcharge shall not exceed the total amount payable as on income tax on income of Rs. 10,00,000 by more than the amount of total income that exceeds Rs. 10,00,000.