Penalties under Income Tax Act

Section	Nature of Default	Basis of Charge	Quantum of penalty
221(1)	Failure to pay tax; i.e., non-payment of tax required by notice u/s. 156.	--	Amount of tax in arrears
271(1)(b)	Non-compliance with notice u/s. 142(1) to file returns or to produce documents required by assessing officer or u/s. 143(2) to produce evidence on which assessee relies or u/s. 142(2A) to get accounts audited.	--	Rs. 10,000
271(1)(c)	Concealment of the particulars of income, or furnishing inaccurate particulars thereof.	Tax sought to be evaded	100 % to 300 % of tax sought to be evaded
271A	Failure to maintain books or documents u/s. 44AA.	--	Rs. 25,000
271AA	Failure to keep and maintain information and documents u/s. 92D.	International transaction	2% of International transaction
271B	Failure to get accounts audited and furnish Tax Audit Report as required u/s. 44AB.	Total Sales, Turnover, or Gross Receipts	0.5% of total sales, turnover or gross receipts, or Rs. 1,00,000 whichever is less
271BA	Failure to furnish a report as required u/s. 92E.	--	Rs. 1,00,000
271C	Failure to deduct the whole or part of the tax as required by or under Chapter XVII-B (Ss. 192 to 196D) or failure to pay the whole or part of tax u/s. 115-O.	Tax failed to be deducted	Equal to the amount failed to be deducted
271D	Contravention of the provisions of S. 269SS; i.e., by taking or accepting any loan or deposit otherwise than by ways specified therein.	Amount of loan or deposit so taken or accepted	Equal to the amount of loan or deposit so taken or accepted
271E	Contravention of S. 269T; i.e. repayment of any deposit otherwise than by modes specified therein.	Amount of deposit so repaid	Equal to the amount of deposit so repaid
271F	Failure to furnish Return of Income under sub-section (1) of S. 139 before the end of the relevant Assessment Year.	--	Rs. 5,000
Failure to furnish Return of Income under proviso to sub-section (1) of S. 139 by the due date.	--	Rs. 5,000
271G	Failure to furnish information or document u/s. 92D (3).	International transaction	2 % of such default.
272A(1)	Failure to answer questions, sign statements, attend summons u/s. 131(1), apply for permanent account number u/s. 139A.	--	Rs. 10,000
272A(2)	Failure to:		Rs. 100 for every day during which the failure continues.
	Comply with notice u/s. 94(6) furnishing information regarding securities
	Give notice of discontinuance of business - S. 176(3)
	Furnish in due time returns, statements, or particulars u/s. 133, 206 or 285B
	Allow inspection of any register(s) - S. 134
	Furnish returns u/s. 139(4A)
	Deliver in due time a declaration mentioned in S. 197A
	Furnish a certificate u/s. 203.
	Deduct and pay tax u/s. 226(2)
	Furnish returns/ statements/ certificate u/s. 206C
	Furnish a statement of particulars of perquisites and profits in lieu of salary u/s. 192(2C)
272AA(1)	Failure to furnish the prescribed information required u/s. 133B (Refer to Form No. 45D).	--	Rs. 1,000
272B	Failure to apply for Permanent Account Number (PAN)	--	Rs. 10,000
272BB(1)	Failure to apply for Tax Deduction Account No. (TAN) (S. 203A)	--	Rs. 10,000
272BBB	Failure to apply for Tax Collection Account No. (TCN)	--	Rs. 10,000

Note:
No penalty is imposable for any failure u/ss. 271(1)(b), 271A, 271AA, 271B, 271BA, 271BB, 271C, 271D, 271E, 271F, 271G, 272A(1)(c) or (d), 272(2), 272AA(1), 272B, 272BB(1) and 272BBB(1), if the person or assessee proves that there was a reasonable cause for such failure (S. 273B).

Filing of Returns

The Return of Income - SEC 139   

(i) is in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise, as may be specified by the Board in this behalf; or

(ii) is the owner or the lessee of a motor vehicle other than a two-wheeled motor vehicle, whether having any detachable side car having extra wheel attached to such two-wheeled motor vehicle or not; or

(iii) is a subscriber to a cellular telephone not being a wireless in local loop telephone; or

(iv) has incurred expenditure for himself or any other person on travel to any foreign country; or

(v) is the holder of a credit card, not being an "add-on" card, issued by any bank or institution; or

(vi) is a member of a club where entrance fee charged is twenty-five thousand rupees or more,

shall furnish a return, of his income during the previous year, on or before the due date in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.

A person needs to file an income-tax return if his/her income is above the basic exemption limits. For the financial year 2006-2007, for males the exemption Limit is Rs 1 lakh, females - Rs 1.35 lakh, and for senior citizens, the exemption limit is, and Rs1.85 lakh, respectively.

Filing returns is mandatory above these limits, even for a salaried person without other sources of income, and for whom tax has been deducted at source.

The last date for filing returns is July 31, 2007. However, it may be advantageous to file returns anyway, as they are usually demanded by banks and financial institutions when one makes investments or takes loans. Also, if refund has to be claimed for tax deduction at source, this becomes important.

Documents to be Attached ? 

No document to be attached with ITR forms. However, all documents used for calculating income-tax return, such as Form 16, bank statements and advance tax receipts are to be preserved , Maybe the Income Tax Officer call for these later, to check the co-relation of details in the form.

Mandatory disclosures

Investments made in bank deposits, mutual funds, shares or even property in the year 2006-07, above certain threshold, needs to be disclosed as under:

Deposits up to Rs 10 lakh, in any single bank, during the year.

Payments made via a single credit card, aggregating Rs 2 lakh.

Purchase of units of a mutual fund aggregating Rs 2 lakh.

Acquisition of bonds or debentures issued by a company for Rs 5 lakh. or more

Investment in RBI bonds, for Rs 5 lakh or more.

Acquisition of shares of a company, for Rs 1 lakh or more.

Purchase or sale of an immovable property for Rs 30 lakh or more.

Where and how to file returns?

As the process has been centralised, filing of IT returns can be done anywhere in the country, at IT offices and even post-offices. If a person has relocated, just the change of address needs to be intimated and the filing can be done at the new location.

Electronic filing of returns introduced in 2004. Individuals can file returns through authorised intermediaries who digitise the data and send it to the IT Department. However, there have been problems regarding e-filed returns and delays in the processing

Penalties for late filing

If there are no balance taxes to be paid, no interest can be levied. However, a penalty of Rs 5,000 can be imposed by the Tax Department. In case there are tax arrears, 1 per cent per month as interest on the taxes due will be levied as penalty.

Due Dates for filing of Returns of Income

I.  Where the assessee is a Company - 31st October of the Assessment year.

II . Where the assessee is a person other than a company :-

a) where accounts of the assessee are to be Audited or 2.a working partner of a firm whose accounts are required to be audited under the Income Tax Act or any other law - 31st October of the Assessment Year.

b) Where the return has to be filed under the one-by-six criteria - 31st October of the Assessment Year.

c) Any other assessee - 31st July of the Assessment Year

Consequences of not Filing or Late Filing of Income Tax Returns

Where the assessee has defaulted in timely furnishing of his return of income, then penal interest is chargeable for Non/Late filing of return.

Interest Calculated by IT Department for Late or Non-Furnishing of Return -

For defaults in furnishing Return of income - Simple interest @ 1.25% for every month orPart of a month from the due date of filing of the Return to the date of furnishing of the return. The interest is calculated on the amount of the tax on the total assessed income as determined under sub-section (1) of section 143 or on regular assessment u/ s 143(3) as reduced by the Advance Tax , if any, paid and any tax deducted or collected at source.

Penalty on not filing IT Returns - Penalty of Rs.5000 is imposable for non-filing of return, which is to be filed under one-by-six scheme.In other cases, the penalty for late filing is Rs.5,000. Interest is also chargeable for non-filing or late filing. 

Companies, partnership firms and small businesses enjoying 25-100 per cent deduction on income will lose these and other tax benefits if they do not file their returns by the due date.

Tax payers, including individuals, may have to pay a penalty of Rs 5,000 if they do not file returns by the due date or by the end of the assessment year. If they do not file by either deadline they will be issued a notice by the department and non-compliance will mean additional penalties of Rs 10,000.

Section 80 AC of the Income Tax Act 1969, which deals with denial of deductions unless returns are filed by the due date, will be strictly implemented this year.

The section was introduced in 2006 and the income tax department is serious about implementing the provision in right earnest this year.

The due date for small firms and businesses with turnovers less than Rs 40 lakh is July 31. Besides companies, the due date is October 31 for businesses or firms with turnovers above Rs 40 lakh.

DIRECT TAX CODE

As we all know that the DTC (Direct Tax Code) will be replacing the existing Income Tax Act, 1961 from April 1, 2012. It will be beneficial for all of us to know the basic and concrete changes that have been made in the Direct Tax Code.

Salient features and highlights of the DTC (Direct Tax Code) :

1. DTC removes most of the categories of exempted income. Unit Linked Insurance Plans (ULIP's), Equity MUTUAL FUNDS (ELSS), Term deposits, NSC (National Savings certificates), Long term infrastructures bonds, house loan principal repayment, stamp duty and registration fees on purchase of house property will loose tax benefits.

2. Tax saving based investment limit remains 100,000 but another 50,000 has been added just for pure Life insurance (Sum insured is atleast 20 times the premium paid) , health insurance, mediclaims policies and tuition fees of children. But the one lakh investment can now only be done in provident fund, superannuation fund, gratuity fund and new pension fund.

3. The tax rates and slabs have been modified. The proposed rates and slabs are as follows:

Annual Income	Tax Slab
Up-to INR  200,000 (for senior citizens 250,000)	Nil
Between INR 200,000 to 500,000	10%
Between INR 500,000 to 1,000,000	20%
Above INR 1,000,000	30%

Men and women are treated same now *

4. Exemption will remain same as 1.5 lakhs per year for interest on housing loan for self-occupied property.

5. Only half of Short-term capital gains will be taxed. e.g. if you gains 50,000, add 25,000 to your taxable income.
Long term capital gains (From equities and equity mutual funds, on which STT has been paid) are still exempted from income tax.

6. As per changes on 15th June, 2010, Tax exemption at all three stages (EEE) —savings, accretions and withdrawals—to be allowed for provident funds (GPF, EPF and PPF), NPS (new pension scheme administered by PFRDA), Retirement benefits (gratuity, leave encashment, etc), pure life insurance products & annuity schemes. Earlier DTC wanted to tax withdrawals.

7. Surcharge and education cess are abolished.

8.  For incomes arising of House Property: Deductions for Rent and Maintenance would be reduced from 30% to 20% of the Gross Rent. Also all interest paid on house loan for a rented house is deductible from rent.Before DTC, if you own more than one property, there was provision for taxing notional rent even if the second house was not put to rent. But, under the Direct Tax Code 2010 , such a concept has been  abolished.

9. Tax exemption on LTA (leave Travel allowance) is abolished.

10. Tax exemption on Education loan to continue.

11. Corporate tax reduced from 34% to 30% including education cess and surcharge.

12. Taxation of Capital gains from property sale : For sale within one year, gain is to be added to taxable salary.

13. For long term gain (after one year of purchase), instead of flat rate of 20% of gain after indexation benefit, new concept has been introduced. Now gain after indexation will be added to taxable income and taxed at per the tax slab.
Base date for cost of acquisition has been changed to 1st April, 2000 instead of earlier 1st April, 1981.

14. Medical reimbursement : Max limit for medical reimbursements has been increased to 50,000 per year from current 15,000 limit.

15. Tax on dividends: Dividends will attract 5% tax.

16. Bad news for NRIs : As per the current laws, a NRI is liable to pay tax on global income if he is in India for a period more than 182 days in a financial year. But in new bill, this duration has been changed to just 60 days.
This is very unfair to Seafarers. To avoid any income tax, an Indian sailor employed with a foreign ship will have to stay maximum for 60 days in India.

For all other updates on Direct Tax Code keep following this blog or else visit. www.anthwallaw.webs.com

Deductions

Deductions under Chapter VIA

Deductions under 80CCC:

Deduction: The premium must be deposited to keep in force a contract for an annuity plan of the LIC or any other insurer for receiving pension from the fund.
The Finance Act 2006 has enhanced the ceiling of deduction under Section 80CCC from Rs.10,000 to Rs.1,00,000 with effect from 1.4.2007.

Remark: The premium must be deposited to keep in force a contract for an annuity plan of the LIC or any other insurer for receiving pension from the fund.The Finance Act 2006 has enhanced the ceiling of deduction

under Section 80CCC from Rs.10,000 to Rs.1,00,000 with effect from 1.4.2007.

Deductions under 80CCD:
Deduction: Deposit in pension a/c.

Remark: Deposit made by an employee in his pension account to the extent of 10% of his salary. Where the Central Government makes any contribution to the pension account, deduction of such contribution to the extent of 10% of salary shall be allowed. Further, in any year where any amount is received from the pension account such amount shall be charged to tax as income of that previous year.

Deductions under 80D:
Deduction: Payment of medical insurance premium.

Remark: The premium is to be paid by any mode of payment other than cash and the insurance scheme should be framed by the General Insurance Corporation of India & approved by the Central Govt. or Scheme framed by any other insurer and approved by the Insurance Regulatory & Development Authority. The premium should be paid in respect of health insurance of the assessee or his family members. The Finance Act 2008 has also provided deduction upto Rs. 15,000/- in respect of health insurance premium paid by the assessee towards his parent/parents.

Deductions under 80DD:

Deduction: Deduction of Rs.40,000/- in respect of (a) expenditure incurred on medical treatment,

(including nursing), training and rehabilitation of handicapped dependant relative. (b) Payment or deposit to specified scheme for maintenance of dependant handicapped relative. W.e.f. 01.04.2004 the deduction under this section has been enhanced to Rs.50,000/ -. Further, if the dependant is a person with severe disability a deduction of Rs.75,000/ - shall be available under this section.

Remark: The handicapped dependant should be a dependant relative suffering from a permanent disability (including blindness) or mentally retarded, as certified by a specified physician or psychiatrist.

Note: A person with severe disability means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the “Persons with Disabilities (Equal opportunities , Protection of Rights and Full Participation)Act.

Deductions under 80DDB:

Deduction: Deduction available to the extent of Rs.40,000 or the amount actually paid, whichever is less, in respect of medical expenditure incurred. In case of senior citizens, a deduction upto Rs.60,000/- shall be available.

Remark: Expenditure must be actually incurred by resident assessee on himself or dependent relative for medical treatment of specified disease or ailment. The diseases have been specified in Rule 11DD. A certificate in form 10 I is to be furnished by the assessee from a specialist working in a Government hospital.

Deductions under 80E:

Deduction: Deduction in respect of payment in the previous year of interest on loan taken from a financial institution or approved charitable institution for higher studies.

Remark: This provision has been introduced to provide relief to students taking loans for higher studies. The payment of the interest thereon will be allowed as deduction over a period of upto 8 years. Further, by Finance Act, 2007 deduction under this section shall be available not only in respect of loan for pursuing higher education by self but also by spouse or children of the assessee.

Deductions under 80G:
Deduction: Donation to certain funds, charitable institutions etc.

Remark: The various donations specified in Sec. 80G are eligible for deduction upto either 100% or 50% with or without restriction as provided in Sec. 80G.

Deductions under 80GG:
Deduction: Deduction available is the least of
(i) Rent paid less 10% of total income
(ii) Rs.2000 per month
(iii) 25% of total income.

Remark: (1) Assessee or his spouse or minor child should not own resedential accommodation at the place of employment.

(2) He should not be in receipt of house rent allowance.

(3) He should not have a self occupied residential premises in any other place.

Deductions under 80U:

Deduction: Deduction of Rs.50,000/- to an individual who suffers from a physical disability (including blindness) or mental retardation.Further, if the individual is a person with severe disability, deduction of Rs.75,000/- shall be available u/s 80U.

Remark: Certificate should be obtained on prescribed format from a notified ‘Medical authority’.

Deductions under 80RRB:

Deduction: Deduction in respect of any income by way of royalty in respect of a patent registered on or after 01.04.2003 under the Patents Act 1970 shall be available as :- Rs. 3 lacs or the income received, whichever is less.

Remark: The assessee who is a patentee must be an individual resident in India. The assessee must furnish a certificate in the prescribed form duly signed by the prescribed authority alongwith the return of income.

Deductions under 80QQB:

Deduction: Deduction in respect of royalty or copyright income received in consideration for authoring any book of literary, artistic or scientific nature other than text book shall be available to the extent of Rs. 3 lacs or income received, whichever is less.

Remark: The assessee must be an individual resident in India who receives such income in exercise of his profession. To avail of this deduction, the assessee must furnish a certificate in the prescribed form along with the return of income.

Deductions under 80C:

Deduction: This section has been introduced by the Finance Act, 2005. Broadly speaking, this section provides deduction from total income in respect of various investments/expenditures/payments in respect of which tax rebate u/s 88 was earlier available. The total deduction under this section is limited to Rs.1 lakh only.

Remark: Life Insurance Premium, Sum paid under contract for deferred annuity, Sum deducted from salary payable to Govt. Servant for securing deferred annuity for self, spouse or child, Employee’s Provident Fund Scheme, PPF, National Saving Certificate, Housing Loan principal repayment, ULIP, FD, ELSS, Bonds and Children education, etc.

Income Tax Rate for Individuals

Income Tax Rates/Slabs for A.Y. (2011-12)

Slab (Rs.)	Tax (Rs.)
less than 1,60,000	Nil
1,60,000 to 5,00,000	(TI – 1,60,000) * 10%
5,00,000 to 8,00,000	34,000 + (TI – 5,00,000) * 20%
Greater than 8,00,000	94,000 + (TI – 8,00,000) * 30%

Women aged 65 years or less

Slab (Rs.)	Tax (Rs.)
less than 1,90,000	Nil
1,90,000 to 5,00,000	(TI – 1,90,000) * 10%
5,00,000 to 8,00,000	31,000 + (TI – 5,00,000) * 20%
Greater than 8,00,000	91,000 + (TI – 8,00,000) * 30%

Senior Citizens (Individuals aged above 65 years)

Slab (Rs.)	Tax (Rs.)
less than 2,40,000	Nil
2,40,000 to 5,00,000	(TI – 2,40,000) * 10%
5,00,000 to 8,00,000	26,000 + (TI – 5,00,000) * 20%
Greater than 8,00,000	86,000 + (TI – 8,00,000) * 30%

Income Tax Rates/Slabs for A.Y. (2010-11)

Slab (Rs.)	Tax (Rs.)
less than 1,60,000	Nil
1,60,000 to 3,00,000	(TI – 1,60,000) * 10%
3,00,000 to 5,00,000	14,000 + (TI – 3,00,000) * 20%
Greater than 5,00,000	54,000 + (TI – 5,00,000) * 30%

Women aged 65 years or less

Slab (Rs.)	Tax (Rs.)
less than 1,90,000	Nil
1,90,000 to 3,00,000	(TI – 1,90,000) * 10%
3,00,000 to 5,00,000	11,000 + (TI – 3,00,000) * 20%
Greater than 5,00,000	51,000 + (TI – 5,00,000) * 30%

Senior Citizens (Individuals aged above 65 years)

Slab (Rs.)	Tax (Rs.)
less than 2,40,000	Nil
2,40,000 to 3,00,000	(TI – 2,40,000) * 10%
3,00,000 to 5,00,000	6,000 + (TI – 3,00,000) * 20%
Greater than 5,00,000	46,000 + (TI – 5,00,000) * 30%

Income Tax Rates/Slabs for A.Y. (2009-10)

Slab (Rs.)	Tax (Rs.)
less than 1,50,000	Nil
1,50,000 to 3,00,000	(TI – 1,50,000) * 10%
3,00,000 to 5,00,000	15,000 + (TI – 3,00,000) * 20%
Greater than 5,00,000	55,000 + (TI – 5,00,000) * 30%

Women aged 65 years or less

Slab (Rs.)	Tax (Rs.)
less than 1,80,000	Nil
1,80,000 to 3,00,000	(TI – 1,80,000) * 10%
3,00,000 to 5,00,000	12,000 + (TI – 3,00,000) * 20%
Greater than 5,00,000	52,000 + (TI – 5,00,000) * 30%

Senior Citizens (Individuals aged above 65 years)

Slab (Rs.)	Tax (Rs.)
less than 2,25,000	Nil
2,25,000 to 3,00,000	(TI – 2,25,000) * 10%
3,00,000 to 5,00,000	7,500 + (TI – 3,00,000) * 20%
Greater than 5,00,000	47,500 + (TI – 5,00,000) * 30%

Income Tax Rates/Slabs for A.Y. (2008-09)

Slab (Rs.)	Tax (Rs.)	Surcharge on Income Tax (if TI > Rs.10 Lakhs)
less than 1,10,000	Nil	Nil
1,10,000 to 1,50,000	(TI – 1,10,000) * 10%	10%
1,50,000 to 2,50,000	4,000 + (TI – 1,50,000) * 20%	10%
Greater than 2,50,000	24,000 + (TI – 2,50,000) * 30%	10%

Women aged 65 years or less

Slab (Rs.)	Tax (Rs.)	Surcharge on Income Tax (if TI > Rs.10 Lakhs) (Rs.)
less than 1,45,000	Nil	Nil
1,45,000 to 1,50,000	(TI – 1,45,000) * 10%	10%
1,50,000 to 2,50,000	500 + (TI – 1,50,000) * 20%	10%
Greater than 2,50,000	20,500 + (TI – 2,50,000) * 30%	10%

Senior Citizens (Individuals aged above 65 years)

Slab (Rs.)	Tax (Rs.)	Surcharge on Income Tax (if TI > Rs.10 Lakhs) (Rs.)
less than 1,95,000	Nil	Nil
1,95,000 to 2,50,000	(TI – 1,95,000) * 20%	10%
Greater than 2,50,000	11,000 + (TI – 2,50,000) * 30%	10%

Education Cess has to be added on Income-tax and Surcharge @ 2% from AY 2004-05 and 3% from AY 2007-08

Income Tax Rates/Slabs for A.Y. (2006-07 & 2007-08)

Slab (Rs.)	Tax (Rs.)	Surcharge on Income Tax (if TI > Rs.10 Lakhs)
less than 1,00,000	Nil	Nil
1,00,000 to 1,50,000	(TI – 1,00,000) * 10%	10%
1,50,000 to 2,50,000	5,000 + (TI – 1,50,000) * 20%	10%
Greater than 2,50,000	25,000 + (TI – 2,50,000) * 30%	10%

Women aged 65 years or less

Slab (Rs.)	Tax (Rs.)	Surcharge on Income Tax (if TI > Rs.10 Lakhs) (Rs.)
less than 1,35,000	Nil	Nil
1,35,000 to 1,50,000	(TI – 1,35,000) * 10%	10%
1,50,000 to 2,50,000	1,500 + (TI – 1,50,000) * 20%	10%
Greater than 2,50,000	21,500 + (TI – 2,50,000) * 30%	10%

Senior Citizens (Individuals aged above 65 years)

Slab (Rs.)	Tax (Rs.)	Surcharge on Income Tax (if TI > Rs.10 Lakhs) (Rs.)
less than 1,85,000	Nil	Nil
1,85,000 to 2,50,000	(TI – 1,85,000) * 20%	10%
Greater than 2,50,000	13,000 + (TI – 2,50,000) * 30%	10%

Income Tax Rates/Slabs for A.Y. (2004-05 & 2005-06)

Slab (Rs.)	Tax (Rs.)	Surcharge on Income Tax (If TI > Rs.8.50 Lakhs) (Rs.)
less than 50,000	Nil	Nil
50,000 to 60,000	(TI – 50,000) * 10%	10%
60,000 to 1,50,000	1,000 + (TI – 60,000) * 20%	10%
Greater than 1,50,000	19,000 + (TI – 1,50,000) * 30%	10%

Income Tax Rates/Slabs for A.Y. (2003-04)

Slab (Rs.)	Tax (Rs.)	Surcharge on Income Tax (If TI > Rs.60,000) (Rs.)
Less than 50,000	Nil	Nil
50,000 to 60,000	(TI – 50,000) * 10%	5%
60,000 to 1,50,000	1,000 + (TI – 60,000) * 20%	5%
Greater than 1,50,000	19,000 + (TI – 1,50,000) * 30%	5%

Income Tax Rates/Slabs for A.Y. (2002-03)

Slab (Rs.)	Tax (Rs.)	Surcharge on Income Tax (If TI > Rs.60,000)
Less than 50,000	Nil	Nil
50,000 to 60,000	(TI – 50,000) * 10%	2%
60,000 to 1,50,000	1,000 + (TI – 60,000) * 20%	2%
Greater than 1,50,000	19,000 + (TI – 1,50,000) * 30%	2%

Income Tax Rates/Slabs for A.Y. (2001-02)

Slab (Rs.)	Tax (Rs.)	Surcharge TI > 60,000	Surcharge TI > 1,50,000
Less than 50,000	Nil	Nil	Nil
50,000 to 60,000	(TI – 50,000) * 10%	12%	17%
60,000 to 1,50,000	1,000 + (TI – 60,000) * 20%	12%	17%
Greater than 1,50,000	19,000 + (TI – 1,50,000) * 30%	12%	17%