Tax Insurance 2018-07-23T05:52:19+00:00

Tax Insurance

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What is Income Tax?

Tax alludes to the expense you pay specifically to the legislature relying upon your wage or benefit (for organizations/neighborhood experts). The cash gathered by this immediate expense course is utilized by the Government for infrastructural advancements and, additionally, to pay the representatives of focal and state government bodies.

Duties required by the Government are of two kinds Direct expenses and Indirect charges. Circuitous charges are those that are exacted on administrations and products. Coordinate assessments, then again, are collected on benefits and wage. For instance, benefit impose is the thing that you pay in an eatery and is a backhanded duty, while Income Tax that is deducted from your compensation consistently as TDS, is a case of direct assessment.

Pay Tax Act of India, go in 1961, represents the arrangements for money impose and in addition the different conclusions that are relevant to it. Be that as it may, since 1961, the law has been revised a few times to deal with expansion and other financial circumstances.

Who are the Tax Payers?

Any Indian native matured beneath 60 years is obligated to pay impose, if their pay surpasses Rs 2.5 lakhs. In the event that the individual is over 60 years old and acquires more than Rs 2.5 lakhs, he/she should pay expenses to the Government of India. Furthermore, the accompanying substances that create pay are at risk to pay coordinate expenses:

  • Hindu Undivided Family (HUF)
  • Body Of Individuals (BOI)
  • Association of Persons (AOP)
  • Local Authorities
  • Corporate firms
  • Companies
  • All Artificial Juridical Persons

What are the Different Income Tax Slab Rates?

For HUFs and Individuals (Male or Female) Below the Age of 60 Years Income Tax Slabs & Rates 2017-18:

Income Tax SlabsIncome Tax Rates
Income less than Rs 2.5 lakhsNot applicable
Income greater than Rs 2.5 lakhs but less than Rs 5 lakhs5% of the amount exceeding Rs 2.5 lakhs
Income greater than Rs 5 lakhs but less than Rs 10 lakhs20% of the amount exceeding Rs 5 lakhs
Income greater than Rs 10 lakhs30% of the amount exceeding Rs 10 lakhs

For Individuals (Male or Female) Above the Age of 60 Years:

Income Tax SlabsIncome Tax Rates
Taxable income less than Rs 3 lakhsNot applicable
Taxable income greater than Rs 3 lakhs but less than Rs 5 lakhs5% of the amount exceeding Rs 2.5 lakhs
Taxable income greater than Rs 5 lakhs but less than Rs 10 lakhs20% of the amount exceeding Rs 5 lakhs
Taxable income greater than Rs 10 lakhs30% of the amount exceeding Rs 10 lakhs

For Individuals (Male or Female) Above the Age of 80 Years:

Income Tax SlabsIncome Tax Rates
Taxable income less than Rs 5 lakhsNot applicable
Taxable income greater than Rs 5 lakhs but less than Rs 10 lakhs5% of the amount exceeding Rs 2.5 lakhs
Taxable income greater than Rs 10 lakhs20% of the amount exceeding Rs 5 lakhs

For Co-operative Societies:

Income Tax SlabsIncome Tax Rates
Taxable income less than Rs 10,00010% of the income
Taxable income greater than Rs 10,000 but less than Rs 20,00020% of the amount exceeding Rs. 10,000.
Taxable income greater than Rs 20,00030% of the amount exceeding Rs. 20,000.

For Domestic Companies:

The income tax rate applicable for Domestic Companies will be @ 30%.

For Co-operative Societies:

Nature of income:Rate of tax:
According to the agreement designed by Indian Government, if the foreign firms are paid by the Indian Government in the form of royalties (After March 31st ,1961 and before April 1st, 1976)50%
According to the agreement made with an Indian concern, if the payment is done for the technical services (provided by foreign firms – After February 29th 1964, before April 1st 1976)50%
For any other income40%

For Local Authorities:

For local authorities, the tax rate is determined as at 30%.

**Income Tax Slab Rates for the assessment year 2018-19**