Comprise taxation on income earned in a financial year a part of which is taxable as per rates prescribed for that year. With the financial year running from 1 April to 31 March of following year, broadly taxpayers are classified as residents or non- residents where the individual taxpayers can be classified as 'residents but not ordinary residents'.
Residential Status
An person shall be deemed resident in India if he / she is in India in a tax year for:
- 182 days or more
- 60 days or further if the duration of 60 days is adjusted to 182 days or more for–Indian citizens / Indians of Indian descent on a travel to India
- For citizens of India departing India for jobs to other countries as crew members of an Indian ship within a tax year.
. A resident is "not normally resident" in India in every tax year if he/she:
- has been "non-resident" in India in 9 /10 years preceding that year and
- has been in India for a cumulative duration of 729 days / less in the intervening seven years.
HEADS OF INCOME
Employment is classified into 5 broad headings / classes where the taxable portion of employment is calculated in compliance with the regulations for the individual heading / class of income accompanied by averaging for the calculation of the overall taxable income. These include:
Salaries – Earned against benefits given, including salaries, insurance, fines, bonuses and the taxable benefit of perquisites.
Profits from household property that contain profits from the usage of residential / commercial properties. In this situation, only two specified deductions are authorized when calculating profits.
Business / Professional earnings and benefits that include income gained by business / profession that is free of permissible deductions against income received.
Capital Profits which include profits resulting from the sale of capital assets and the retention duration which defines the status of the asset and which then specifies the form of taxation. Gains cover short-term investments and long-term capital assets.
Profits from Certain Accounts that are the remaining head / class of taxes for any profits not expressly dealing with in such headings.
RULES GOVERNING FOREIGN NATIONALS –
For foreign nationals, Indian tax law provides exemption of income earned subject to prescribed conditions. This is based on conditions like –
- Person stay in India shall not exceed 90 days
- Payment rendered shall not be excluded in the calculating profit of the employer
- Remuneration earned by the person working on a foreign ship given that his stay in India is not more than 90 days
- Remuneration of international diplomats, consular workers, trade representatives and their employees and the family
- Remuneration of the worker / government contractor authorised by international charitable institutions
Below mentioned are the Tax Rates For Individuals For FY 2017-18 (Assessment Year 2018-19) Is As Per Follows:
| Income Range | Very senior Citizen(who is 80 years or above at any time during previous year) (a) | Senior Citizen(who is 60 years or above but below 80 years at any time during previous year) (b) | General Category & non Resident Other than (a) & (b) |
|---|---|---|---|
| Upto Rs. 2,50,000 | Nil | Nil | Nil |
| Rs. 2,50,001 to Rs. 3,00,000 | Nil | Nil | 5% |
| Rs. 3,00,001 to Rs 5,00,000 | Nil | 5% | 5% |
| Rs. 5,00,001 to Rs 10,00,000 | 20% | 20% | 20% |
| Above Rs. 10,00,000 | 30% | 30% | 30% |
*For the financial year 2017-18, the Minister of Finance has given a maximum discount of Rs. 2,500 under Section 87A which is a RESIDENT Person & Gross Income Except Deductions (under Section 80) equal to or less than Rs 3,50,000. If any of the above requirements are fulfilled, a refund of Rs 2500 would be made available under Section 87A. The rebate is limited to Rs 2,500. That implies, if the overall tax payable is less than Rs 2500, the lower sum of tax would be the refund under Section 87A. This discount is added to the overall tax until the implementation of Education Cess (3 per cent). This exemption is also applicable to seniors who are 60 years of age but under 80 years of age.
Surcharge: 10% of income tax, if the total income reaches Rs.50 lakh but up to Rs.1 crore and 15% of income tax, if the annual income reaches Rs.1 crore.
COMPANIES
Domestic Company - Turnover upto Rs. 50 crores
- Income Tax: 25% of taxable income
- Surcharge:
At the rate of 7% of such income tax, provided that the taxable income exceeds Rs. 1 crore.
At the rate of 12% of such income tax, provided that the taxable income exceeds Rs. 10 crores. - Education Cess: 3% of the total of Income Tax and Surcharge.
Domestic Company - Turnover exceeding Rs. 50 crores
- Income Tax: 30% of taxable income
- Surcharge:
At the rate of 7% of such income tax, provided that the taxable income exceeds Rs. 1 crore.
At the rate of 12% of such income tax, provided that the taxable income exceeds Rs. 10 crores. - Education Cess: 3% of the total of Income Tax and Surcharge
Firms Foreign Company
- Income Tax: 40% of total income
- Surcharge:
At the rate of 2% of such income tax, provided that the taxable income exceeds Rs. 1 crore
At the rate of 5% of such income tax, provided that the taxable income exceeds Rs. 10 crores - Education Cess: of 3% of total of Income-tax and surcharge
Kinds of Taxes
- Yearly tax that is paid on profits received in the financial year which is focused on the rates specified in the annual budget. With amounts ranging from budget to budget, the tax is collected in advance by means of quarterly installment over the fiscal year.
- Minimum Alternate Tax (MAT) is tax levied @ 18.5% of book profit. Here, the surcharge is at the rate of 7% of such income tax provided that the taxable income exceeds Rs. Given if the net profit crosses Rs. 10 crores In turn, the tuition grant is @3 per cent of the gross income tax and surcharge.
Firm
Partnership Firms and LLPs (Limited Liability Partnerships) are to be taxed at the rate of 30%.
- Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
- Education Cess of 3% of total of Income-tax and surcharge
What Rajput Jain & Associates Offers
Are you searching for corporate tax consultants or business consultants in Delhi? Income Tax Consultants or Tax Consultants in Delhi provide facilities at an reasonable price that completely fulfill consumer specifications and standards. We offer expert consultancy to Corporate, foreign Companies, individuals (both Residents and Non-residents), partnership firms who are liable to pay Tax according to the Indian legislation authority. We are also dealing in filing Income Tax Return for various category of persons under the income tax act. This is another important aspect about which people are generally not aware of and because of lack of knowledge and at times poor guidance land in making improper financial decisions, which is an important aspect of everyone’s life. We will build tax policies that can help our clients navigate current tax laws in compliance with our regulations. Our specialist resources include-Tax Management, Removal of Tax Liabilities & Risks, Finalization of Records, Filing of Reports, Preparing Tax Accounting and Preparing. So, apply to us to submit your income tax report and reap the rewards of sound financial management guidance, and even cost-effectively. Following is our Income Tax Consultants or Tax Consultants based support that we provide to our customer:
- Preparation of return
- Tax assessments before authorities in India
- Consultancy in Tax matters & tax planning
- Foreign taxation consultancy
- Transfer Pricing matters
- Withholding tax compliance
- Income tax Appeals before CIT (Appeals) and ITAT
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