Rates of Income Tax for various taxpayers

Individual, Hindu undivided family, association of persons, body of individuals, artificial juridical person
  

(i) The rates of income-tax in the case of every individual (other than those mentioned in (ii) and (iii) below) or Hindu undivided family or every association of persons or body of individuals, whether incorporated or not, or every artificial
juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Act (not being a case to which any other Paragraph of Part III applies) are as under:—

                                    Upto Rs.2,50,000                                  Nil.

                                    Rs. 2,50,001 to Rs. 5,00,000             10 per cent.
                                    Rs. 5,00,001 to Rs. 10,00,000           20 per cent.
                                    Above Rs. 10,00,000                        30 per cent.

(ii) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year,—
                                    Upto Rs.3,00,000                                  Nil.
                                    Rs. 3,00,001 to Rs. 5,00,000             10 per cent.
                                    Rs. 5,00,001 to Rs.10,00,000            20 per cent.
                                    Above Rs. 10,00,000                        30 per cent.
 
(iii) in the case of every individual, being a resident in India, who is of the age of eighty years or more at anytime during the previous year,—

                                     Upto Rs. 5,00,000                                  Nil.
                                     Rs. 5,00,001 to Rs. 10,00,000            20 per cent.
                                     Above Rs. 10,00,000                         30 per cent.
 
The amount of income-tax computed in accordance with the preceding  provisions of this Paragraph shall be increased by a surcharge at the rate of ten percent. of such income-tax in case of a person having a total income exceeding one crore rupees. 

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

B. Co-operative Societies
In the case of co-operative societies, the rates of income-tax have been specified in Paragraph B of Part III of the First Schedule to the Bill. These rates will continue to be the same as those specified for financial year 2013-14.
The amount of income-tax shall be increased by a surcharge at the rate of ten percent. of such income-tax in case of a cooperative society having a total income exceeding one crore rupees .
However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

C. Firms
In the case of firms, the rate of income-tax has been specified in Paragraph C of Part III of the First Schedule to the Bill. This rate will continue to be the same as that specified for financial year 2013-2014.
The amount of income-tax shall be increased by a surcharge at the rate of ten percent. of such income-tax in case of a firm having a total income exceeding one crore rupees .
However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.
 
D. Local authorities
The rate of income-tax in the case of every local authority is specified in Paragraph D of Part III of the First Schedule to the Bill. This rate will continue to be the same as that specified for the financial year 2013-2014.
The amount of income-tax shall be increased by a surcharge at the rate of ten percent. of such income-tax in case of a local authority having a total income exceeding one crore rupees .
However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

E. Companies
The rates of income-tax in the case of companies are specified in Paragraph E of Part III of the First Schedule to the Bill.
These rates are the same as those specified for the financial year 2013-2014.
The existing surcharge of five per cent in case of a domestic company shall continue to be levied if the total income of the domestic company exceeds one crore rupees but does not exceed ten crore rupees. The surcharge at the rate of ten percent shall continue to be levied if the total income of the domestic company exceeds ten crore rupees. In case of companies other than domestic companies, the existing surcharge of two per cent. shall continue to be levied if the total income exceeds one crore rupees but does not exceed ten crore rupees. The surcharge at the rate of five percent shall continue to be levied if the total income of the company other than domestic company exceeds ten crore rupees.
However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees but not exceeding ten crore rupees, shall not exceed the total amount payable as income-tax on a total income of one crore rupees, by more than the amount of income that exceeds one crore  rupees. The total amount payable as income-tax and surcharge on total income exceeding ten crore rupees, shall not exceed the total amount payable as  income-tax and surcharge on a total income of ten crore rupees, by more than the amount of income that exceeds ten crore rupees.

In other cases (including sections 115-O, 115QA, 115R or 115TA) the surcharge shall continue to be levied at the rate of ten percent.

For financial year 2014-2015, additional surcharge called the “Education Cess on income-tax” and “Secondary and Higher Education Cess on income-tax” shall continue to be levied at the rate of two per cent. and one per cent. respectively, on the amount of tax computed, inclusive of surcharge (wherever applicable), in all cases. No marginal relief shall be available in respect of such Cess.

Gist of recent important tax judgements

Below are the recent important tax caselaws related to Income tax, Service tax, Excise in brief. The citation is made available for your benefit:

INCOME TAX

SECTION 9
INCOME - DEEMED TO ACCRUE OR ARISE IN INDIA
Permanent Establishment : Where there was some place at disposal of assessee a non-resident company registered in Mauritius or its employees during entire period of stay in India for rendering extensive services to Indian company, it constituted PE in India under India-Mauritius DTAA - Renoir Consulting Ltd. v. Deputy Director of Income Tax (International Taxation) 2 (1) (2014) 45 taxmann.com 112 (Mumbai - Trib.)
SECTION 35AB
TECHNICAL KNOW-HOW EXPENDITURE
Allowability of : Even if there is expenditure for acquisition of technical know-how, provision of section 35AB would not apply, if it is revenue expenditure; it is allowable only under section 37(1) - Deputy Commissioner of Income-tax (Assistant) v. Cibatul Ltd. (2014) 45 taxmann.com 143 (Gujarat)     SECTION 115JB MINIMUM ALTERNATE TAX Provision for bad and doubtful debts : In view of retrospective amendment brought by Finance (No.2) Act, 2009 in section 115JB, Assessing Officer was justified in initiating reassessment proceedings taking a view that assessee was required to add 'provision for bad and doubtful debts' to net profit while computing book profits under section 115JB - Shakti Insulated Wires (P.) Ltd. v. Income-tax Officer, Ward 9(3), Mumbai (2014) 45 taxmann.com 31 (Mumbai - Trib.) Provision for bad and doubtful debts : Since accounting principles on basis of which accounts are prepared under Companies Act, terms 'bad debts' and 'provision for bad and doubtful debts' have distinct meaning, Assessing Officer was justified in making addition of said provision in computing 'book profit' under section 115JB - Shakti Insulated Wires (P.) Ltd. v. Income-tax Officer, Ward 9(3), Mumbai (2014) 45 taxmann.com 31 (Mumbai - Trib.)     SECTION 220 COLLECTION AND RECOVERY OF TAX - WHEN TAX PAYABLE AND WHEN ASSESSEE DEEMED IN DEFAULT Interest under section 220(2) : Where assessment made originally by Assessing Officer is either varied or even set aside by appellate authority, but on further appeal, original order of Assessing Officer is restored either in part or wholly, interest under section 220(2) shall be computed with reference to date reckoned from original demand notice and with reference to tax finally determined - Lenoleum House v. Income-tax Officer (2014) 45 taxmann.com 185 (Allahabad)       SERVICE TAX SECTION 65(105)(zzzm) TAXABLE SERVICES - SALE OF ADVERTISING SPACE OR TIME SERVICES Fees collected by a Municipal Corporation for granting written permission for conducting business of advertisement agency was a part of functions imposed on Corporation under legislation and is not liable to service tax - Nagar Nigam, Agra v. Commissioner (ADJ.), Kanpur (2014) 45 taxmann.com 165 (New Delhi - CESTAT)       SECTION 73 RECOVERY - OF DUTY OR TAX NOT LEVIED/PAID OR SHORT-LEVIED/PAID OR ERRONEOUSLY REFUNDED Where notice demanding service tax on services provided by company was issued in name of director portraying director as 'proprietor', said notice was liable to be set aside as misjoinder - Bhavna Jayantibhai Desai v. Commissioner of Central Excise & Service Tax, Rajkot (2014) 45 taxmann.com 167 (Ahmedabad - CESTAT)