Tax Rates: Individuals/ HUF/ AOP/ BOI

For the year 2005-06

Income	Rate (%)
Up to 1,00,000	NIL
1,00,001 to 1,50,000	10
1,50,001 to 2,50,000	20
Above 2,50,001	30

• Threshold limit for resident women assessees below 65 years of age and resident individuals of 65 years and above has been further increased to Rs. 1.35 lakh and Rs. 1.85 lakh respectively for A.Y. 2006-07.
• Surcharge @ 10% applicable if total income exceeds Rs. 8.5 lakh for A.Y. 2005-06 and Rs. 10 lakh for A.Y. 2006-07
• Marginal relief would be provided to ensure that the additional income tax payable including surcharge, on the excess of income over Rs. 10,00,000 (Rs. 8.5 lakh for A.Y. 2005-06) is limited to the amount by which the income is more than Rs. 10 lakh (Rs. 8.5 lakh for A.Y. 2005-06).
• Education cess @ 2% on tax plus surcharge.

Tax Rates: Firms (%)

For A.Y. 2005-06				For A.Y. 2006-07
Tax	Surcharge	Eductaion Cess	Total	Tax	Surcharge	Education Cess	Total
3.5	2.5	2	36.59	30	10	2	33.66

Figures rounded off to two decimal places



Tax Rates : Domestic Companies (%)

For A.Y. 2005-06				For A.Y. 2006-07
Tax	Surcharge	Eductaion Cess	Total	Tax	Surcharge	Education Cess	Total
3.5	2.5	2	36.59	30	10	2	33.66

Figures rounded off to two decimal places



Dividend Distribution Tax (%)

For A.Y. 2005-06				For A.Y. 2006-07
Tax	Surcharge	Eductaion Cess	Total	Tax	Surcharge	Education Cess	Total
12.5	2.5	2	13.07	12.5	10	2	14.03

Figures rounded off to two decimal places



Income Distribution Tax for MFs (%)

For A.Y. 2006-07
Income	Rate of Tax	Surcharge	Education Cess	Total
If distributed to individual/ HUF	12.5	10	2	14.03
If distributed to any other person	20	10	2	22.44

Note:- In case of co-operative societies, the rate of taxes remain the same of the existing one, but the surcharge of 2.5% is withdrawn from A.Y. 2006-07.



Tax Rates: Long-term Capital Gains
On equity shares and units
Long term capital gain arising on transfering of equity shares or units in equity oriented Mutual Fund, entered into on a recognized stock exchange in India on or after 1.10.2004 is as mentioned below:

For All Assessees - Nil [Exempt under section 10(38)]

On other assets and equity shares, units except falling in the above mentioned gains

Resident individual/ HUF	20%
Domestic companies	20%
Non-residents (other than cos. & foreigns cos.)	20%
NRIs (for gains u/s 115E)	10%
Any other case	20%

Note:-

• If tax payable in case of long-term capital assets, being listed securities or units or zero coupon bond, esceeds 10% of capital gains before indexation., then such excess may be ignored.
• Surcharge for A.Y. 2005-06 and A.Y. 2006-07 at the rates applicable to the assessee. Education cess @ 2% applicable on tax inclusive of surcharge.
• Where tax liability arises only because of the inclusion of long term capital gains tax to be levied at 20% or 10% on the excess over the minimum exemption limit.
• Relief from LTCG is available in respect of the amount by which the Taxable Income other than LTCG falls short of basic exemption limit.
• Rebate u/s 88 not allowed from tax payable on LTCG. 6. No deduction under Chapter VI-A (80C to 80U).

Tax Rates: Short-term Capital Gains
On Equity shares and units
For short term capital gain arising on transfer of equity shares or units in equity oriented Mutual Fund, entered into on a recognized stock exchange in India on or after 1.10.2004 is as mentioned below:

For All Assessees - 10% plus Surcharge plus Education Cess

Note:-

• Rebate u/s 88 not allowed from tax payable on STCG.
• No Deduction under Chapter VI-A (80C to 80U).
• Releif from STCG available in respect of the amount by which the taxable income other than STCG, fall short of Basic Exemption Limit.

* Short Term Capital Gain at normal (slab) rates other than the above mentioned.



Minimum Alternative Tax (%)

For A.Y. 2005-06				For A.Y. 2006-07
Tax	Surcharge	Eductaion Cess	Total	Tax	Surcharge	Education Cess	Total
7.5	2.5	2	7.84125	7.5	10	2	8.42

Payable by companies as %age of book profits.MAT credit available in respect of MAT paid from A.Y. 2006-7 onwards.



Advance Tax Obligation