What are the Income Tax Rates in India as applcable for FY 1-4-05 to 31-3-06?



If gross taxable income is say Rs.4.5 lakhs & PPF Investment is Rs.50000,what will be the tax liability & how to calculate it for the last financial year?

What are the Income Tax Rates in India as applcable for FY 1-4-05 to 31-3-06?
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3 Replies to “What are the Income Tax Rates in India as applcable for FY 1-4-05 to 31-3-06?”

  1. General Rates applicable are:

    upto 1 lacs – Nil
    1Lac-1.5 Lac – 10%
    1.5 Lac – 2.5 Lac – 20%
    > 2.5 lac – 30%

    Surcharge – 10% if total income> 10 lacs
    Education cess – 2%

    In your case your GTI is 4.5 and after deduction U/s 80C for 50K towards PPF, TI will be Rs. 4 Lacs and tax shall be Rs. 71400 (5000+20000+45000+1400).

    In case of women assessee tax liability shall be reduced by Rs. 3570.



  2. upto 1 lac = 0%
    1lac -1.5lac = 10%
    1.5lac -2.5lac = 20%
    after 2.5lacs = 30%

    Surcharge = 10%
    Education Cess = 2% of the net tax liability

    In your case its like below
    your net taxable income shall come to Rs.4lacs (450000-50000)
    tax on it shall amount to Rs.(5000+20000+45000)=60000/- + Education Cess of Rs.1200/-
    Therefore net tax liability shall come out to be Rs.61200/-.
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