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Rate
of tax
Corporate
and non-corporate
No
change has been proposed in the rate or slab of tax for Corporate &
Non-Corporate Assessees, However, it is proposed to levy surcharge @ 10%
on the tax payable after rebate to all assesses except individual and
HUF having income upto Rs.60,000/- , Non-residents and Foreign Companies.
Hence the effective rate of tax shall be :
|
INCOME
BETWEEN |
EXISTING |
PROPOSED |
CORPORATE ( DOMESTIC ) |
35% |
35% +
10% = 38.5% |
NON CORPORATE : |
INDIVIDUAL ( Other than Non - Resident
) |
50001-
60000 |
10% |
10% |
|
60001-
150000 |
20% |
22% |
|
ABOVE
150000/- |
30% |
33% |
FIRM |
35% |
38.5% |
The
proposed amendment shall be effective from Assessment Year 2000-2001.
TAX
ON CAPITAL GAIN ON TRANSFER OF SHARES & SECURITIES
Under
the existing provisions Long Term Capital Gain arisen on the sale of shares
and securities is being taxed @ 20% after giving benefit of Cost Inflation
Index, whereas, certain categories of non-residents and NRI are required
to pay tax @ 10% only. However, benefit of Cost Inflation Index is not
available to them.
It
is proposed to put limit on the tax on long term Capital gain arisen on
listed securities @ 10% of the Capital gain before allowing adjustment
of Cost Inflation Index and excess of 10% shall be ignored. To illustrate
it further , in case capital gain after taking benefit of cost inflation
index comes to less than 10% of the capital gain before giving effect
of inflation index , tax shall be paid on such capital gain by taking
benefit of inflation index. However, if it exceeds 10% the excess of 10%
shall be ignored.
It
is pertinent to note that for to avail the benefit it is necessary that
security must be such as defined in section 2(h) of Securities Contracts
(Regulation) Act, 1956 and is listed in recognised stock exchanges in
India.
The
proposed amendment shall be effective from Assessment Year 2000-2001 and
subsequent years.
Total
income
(Rs.) |
Existing
Tax liability
(Rs.) |
New
Tax liability
(Rs.) |
Additional
liability
(Rs.) |
Percentage
(%) |
50,000 |
Nil |
Nil |
Nil |
Nil |
55,000 |
500 |
500 |
Nil |
Nil |
60,000 |
1,000 |
1,000 |
Nil |
Nil |
60,100 |
1,020 |
1,100 |
80 |
7.8 |
60,120 |
1,024 |
1,120 |
96 |
9.37 |
60,130 |
1,026 |
1,129 |
103 |
10 |
60,150 |
1,030 |
1,133 |
103 |
10 |
60,200 |
1,040 |
1,144 |
104 |
10 |
60,500 |
1,050 |
1,155 |
105 |
10 |
61,000 |
1,200 |
1,320 |
120 |
10 |
65,000 |
2,000 |
2,220 |
200 |
10 |
70,000 |
3,000 |
3,330 |
300 |
10 |
75,000 |
4,000 |
4,400 |
400 |
10 |
1,00,000 |
9,000 |
9,900 |
900 |
10 |
1,50,000 |
19,000 |
20,900 |
1,900 |
10 |
1,75,000 |
26,500 |
29,150 |
2,650 |
10 |
2,00,000 |
34,000 |
37,400 |
3,400 |
10 |
2,50,000 |
49,000 |
53,900 |
4,900 |
10 |
3,00,000 |
64,000 |
70,400 |
6,400 |
10 |
4,00,000 |
94,000 |
1,03,400 |
9,400 |
10 |
5,00,000 |
1,24,000 |
1,36,400 |
12,400 |
10 |
**Marginal
relief would be provided to ensure that the additional amount of income-tax
payable, including surcharge, on the excess of income over Rs. 60,000/-
is limited to the amount by which the income is more than Rs. 60,000/-.
B.
Co-operative societies
In
the case of co-operative societies the rates of income-tax are the same
However, the tax payable would be enhanced by a surcharge at the rate
of ten per cent. of the tax payable.
C.
Firms
In
the case of firms, the rate of income-tax the rate remains at 35 per cent.
However, the tax payable by resident firms would be enhanced by a surcharge
at the rate of ten per cent. of the tax payable.
D.
Local authorities
In
the case of local authorities, the rate of income-tax rate is the same.
However, the tax payable would be enhanced by a surcharge at the rate
of ten per cent. of the tax payable.
E.
Companies
In
the case of companies there is no change in the existing rates of 35 per
cent for domestic companies and 48 per cent. for foreign companies. However,
in the case of domestic companies, the tax payable would be enhanced by
a surcharge at the rate of ten per cent. of the tax payable.
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