2.
Income-tax.- (1) Subject to the provisions of sub-sections
(2) and (3), for the assessment year commencing on the 1st
day of April, 2008, income-tax shall be charged at the rates
specified in Part I of the First Schedule and such tax as
reduced by the rebate of income-tax calculated under Chapter
VIII-A of the Income-tax Act, 1961 (hereinafter referred to
as the Income-tax Act) shall be increased by a surcharge,
for purposes of the Union, calculated in each case in the
manner provided therein.
(2) In the cases to which Paragraph A of
Part I of the First Schedule applies, where the assessee has,
in the previous year, any net agricultural income exceeding
five thousand rupees, in addition to total income, and the
total income exceeds one lakh ten thousand rupees, then,-
(a) the net agricultural income shall be
taken into account, in the manner provided in clause (b) that
is to say, as if the net agricultural income were comprised
in the total income after the first one lakh ten thousand
rupees of the total income but without being liable to tax,
only for the purpose of charging income-tax in respect of
the total income; and
(b) the income-tax chargeable shall be
calculated as follows:-
(i) the total income and the net agricultural
income shall be aggregated and the amount of income-tax shall
be determined in respect of the aggregate income at the rates
specified in the said Paragraph A, as if such aggregate income
were the total income;
(ii) the net agricultural income shall
be increased by a sum of one lakh ten thousand rupees, and
the amount of income-tax shall be determined in respect of
the net agricultural income as so increased at the rates specified
in the said Paragraph A, as if the net agricultural income
as so increased were the total income;
(iii) the amount of income-tax determined
in accordance with sub-clause (i) shall be reduced by the
amount of income-tax determined in accordance with sub-clause
(ii) and the sum so arrived at shall be the income-tax in
respect of the total income:
Provided that in the case
of every woman, resident in India and below the age of sixty-five
years at any time during the previous year, referred to in
item (II) of Paragraph A of Part I of the First Schedule,
the provisions of this sub-section shall have effect as if
for the words "one lakh ten thousand rupees", the words "one
lakh forty-five thousand rupees" had been substituted:
Provided further that
in the case of every individual, being a resident in India,
who is of the age of sixty-five years or more at any time
during the previous year, referred to in item (III) of Paragraph
A of Part I of the First Schedule, the provisions of this
sub-section shall have effect as if for the words "one lakh
ten thousand rupees", the words "one lakh ninety-five thousand
rupees" had been substituted:
Provided also that the
amount of income-tax so arrived at, as reduced by the amount
of rebate of income-tax calculated under Chapter VIII-A of
the Income-tax Act, shall be increased by a surcharge, for
purposes of the Union, calculated in each case in the manner
provided in that Paragraph and the sum so arrived at shall
be the income-tax in respect of the total income.
(3) In cases to which the provisions of
Chapter XII or Chapter XII-A or Chapter XII-H or section 115JB
or sub-section (1A) of section 161 or section 164 or section
164A or section 167B of the Income- tax Act apply, the tax
chargeable shall be determined as provided in that Chapter
or that section, and with reference to the rates imposed by
sub-section (1) or the rates as specified in that Chapter
or section, as the case may be:
Provided that the amount
of income-tax computed in accordance with the provisions of
section 111A or section 112 shall be increased by a surcharge,
for purposes of the Union, as provided in Paragraph A, B,
C, D or E, as the case may be, of Part I of the First Schedule:
Provided further that
in respect of any income chargeable to tax under sections
115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BB, 115BBA, 115BBC,
115E and 115JB or fringe benefits chargeable to tax under
section 115WA of the Income-tax Act, the amount of income-tax
computed under this sub-section shall be increased by a surcharge,
for purposes of the Union, calculated,-
(a) in the case of every individual, Hindu
undivided family, association of persons and body of individuals,
whether incorporated or not, at the rate of ten per cent.
of such income-tax where the total income exceeds ten lakh
rupees;
(b) in the case of every artificial juridical
person referred to in sub-clause (vii) of clause (31) of section
2 of the Income-tax Act, at the rate of ten per cent. of such
income-tax;
(c) in the case of every firm and domestic
company, at the rate of ten per cent. of such income-tax where
the total income exceeds one crore rupees;
(d) in the case of every company, other
than a domestic company, at the rate of two and one-half per
cent. of such income-tax where the total income exceeds one
crore rupees:
Provided also that in
the case of every company having total income chargeable to
tax under section 115JB of the Income-tax Act, and such income
exceeds one crore rupees, the total amount payable as income-tax
and surcharge on such income 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:
Provided also that in
respect of any fringe benefits chargeable to tax under section
115WA of the Income-tax Act, income-tax computed under this
sub-section shall be increased by a surcharge, for purposes
of the Union, calculated,-
(a) in the case of every association of
persons and body of individuals, whether incorporated or not,
at the rate of ten per cent. of income-tax where the fringe
benefits exceed ten lakh rupees;
(b) in the case of every firm, artificial
juridical person referred to in sub-clause (v) of clause (a)
of section 115W of the Income-tax Act, and domestic company,
at the rate of ten per cent of such income-tax;
(c) in the case of every company, other
than a domestic company, at the rate of two and one-half per
cent. of such income-tax.
(4) In cases in which tax has to be charged
and paid under section 115-O or sub-section (2) of section
115R of the Income-tax Act, the tax shall be charged and paid
at the rates as specified in those sections and shall be increased
by a surcharge, for purposes of the Union, calculated at the
rate of ten per cent. of such tax.
(5) In cases in which tax has to be deducted
under sections 193, 194, 194A, 194B, 194BB, 194D and 195 of
the Income-tax Act, at the rates in force, the deductions
shall be made at the rates specified in Part II of the First
Schedule and shall be increased by a surcharge, for purposes
of the Union, calculated in each case, in the manner provided
therein.
(6) In cases in which tax has to be deducted
under sections 194C, 194E, 194EE, 194F, 194G, 194H, 194-I,
194J, 194LA, 196B, 196C and 196D of the Income-tax Act, the
deductions shall be made at the rates specified in those sections
and shall be increased by a surcharge, for purposes of the
Union, calculated,-
(a) in the case of every individual, Hindu
undivided family, association of persons and body of individuals,
whether incorporated or not, at the rate of ten per cent of
such tax where the income or the aggregate of such incomes
paid or likely to be paid and subject to the deduction exceeds
ten lakh rupees;
(b) in the case of every artificial juridical
person referred to in sub-clause (vii) of clause (31) of section
2 of the Income-tax Act, at the rate of ten per cent of such
tax;
(c) in the case of every firm and domestic
company, at the rate of ten per cent of such tax, where the
income or the aggregate of such incomes paid or likely to
be paid and subject to the deduction exceeds one crore rupees;
(d) in the case of every company, other
than a domestic company, at the rate of two and one-half per
cent of such tax, where the income or the aggregate of such
incomes paid or likely to be paid and subject to the deduction
exceeds one crore rupees.
(7) In cases in which tax has to be collected
under the proviso to section 194B of the Income-tax Act, the
collection shall be made at the rates specified in Part II
of the First Schedule, and shall be increased by a surcharge,
for purposes of the Union, calculated in the manner provided
therein.
(8) In cases in which tax has to be collected
under section 206C of the Income-tax Act, the collection shall
be made at the rates specified in that section and shall be
increased by a surcharge, for purposes of the Union, calculated,-
(a) in the case of every individual, Hindu
undivided family, association of persons and body of individuals,
whether incorporated or not, at the rate of ten per cent.
of such tax, where the amount or the aggregate of such amounts
collected and subject to the collection exceeds ten lakh rupees;
(b) in the case of every artificial juridical
person referred to in sub-clause (vii) of clause (31) of section
2 of the Income-tax Act, at the rate of ten per cent. of such
tax;
(c) in the case of every firm and domestic
company at the rate of ten per cent. of such tax, where the
amount or the aggregate of such amounts collected and subject
to the collection exceeds one crore rupees;
(d) in the case of every company, other
than a domestic company, at the rate of two and one-half per
cent. of such tax, where the amount or the aggregate of such
amounts collected and subject to the collection exceeds one
crore rupees.
(9) Subject to the provisions of sub-section
(10), in cases in which income-tax has to be charged under
sub-section (4) of section 172 or sub-section (2) of section
174 or section 174A or section 175 or sub-section (2) of section
176 of the Income-tax Act or deducted from, or paid on, income
chargeable under the head "Salaries" under section 192 of
the said Act or in which the "advance tax" payable under Chapter
XVII-C of the said Act has to be computed at the rate or rates
in force, such income-tax or, as the case may be, "advance
tax" shall be so charged, deducted or computed at the rate
or rates specified in Part III of the First Schedule and such
tax shall be increased by a surcharge, for purposes of the
Union, calculated in each case in the manner provided therein:
Provided that in cases
to which the provisions of Chapter XII or Chapter XII-A or
Chapter XII-H or section 115JB or sub-section (1A) of section
161 or section 164 or section 164A or section 167B of the
Income-tax Act apply, "advance tax" shall be computed with
reference to the rates imposed by this sub-section or the
rates as specified in that Chapter or section, as the case
may be:
Provided further that
the amount of "advance tax" computed in accordance with the
provisions of section 111A or section 112 of the Income-tax
Act shall be increased by a surcharge, for purposes of the
Union, as provided in Paragraph A, B, C, D or E, as the case
may be, of Part III of the First Schedule:
Provided also that in
respect of any income chargeable to tax under sections 115A,
115AB, 115AC, 115ACA, 115AD, 115B, 115BB, 115BBA, 115BBC,
115E and 115JB of the Income-tax Act, "advance tax" computed
under the first proviso shall be increased by a surcharge,
for purposes of the Union, calculated,-
(a) in the case of every individual, Hindu
undivided family, association of persons and body of individuals,
whether incorporated or not, at the rate of ten per cent.
of "advance tax", where the total income exceeds ten lakh
rupees;
(b) in the case of every artificial juridical
person referred to in sub-clause (vii) of clause (31) of section
2 of the Income-tax Act, at the rate of ten per cent. of such
"advance tax";
(c) in the case of every firm and domestic
company, at the rate of ten per cent. of such "advance tax",
where the total income exceeds one crore rupees;
(d) in the case of every company, other
than a domestic company, at the rate of two and one-half per
cent. of such "advance tax", where the total income exceeds
one crore rupees:
Provided also that in
the case of every company having total income chargeable to
tax under section 115JB of the Income-tax Act, and such income
exceeds one crore rupees, the total amount payable as "advance
tax" and surcharge on such income shall not exceed the total
amount payable as "advance tax" on a total income of one crore
rupees by more than the amount of income that exceeds one
crore rupees:
Provided also that in
respect of any fringe benefits chargeable to tax under section
115WA of the Income-tax Act, "advance tax" computed under
the first proviso shall be increased by a surcharge, for purposes
of the Union, calculated,-
(a) in the case of every association of
persons and body of individuals, whether incorporated or not,
at the rate of ten per cent. of "advance tax", where the fringe
benefits exceed ten lakh rupees;
(b) in the case of every firm, artificial
juridical person referred to in sub-clause (v) of clause (a)
of section 115W of the Income-tax Act, and domestic company,
at the rate of ten per cent. of such "advance tax";
(c) in the case of every company, other
than a domestic company, at the rate of two and one-half per
cent. of such "advance-tax".
(10) In cases to which Paragraph A of Part
III of the First Schedule applies, where the assessee has,
in the previous year or, if by virtue of any provision of
the Income-tax Act, income-tax is to be charged in respect
of the income of a period other than the previous year, in
such other period, any net agricultural income exceeding five
thousand rupees, in addition to total income and the total
income exceeds one lakh fifty thousand rupees, then, in charging
income-tax under sub-section (2) of section 174 or section
174A or section 175 or sub-section (2) of section 176 of the
said Act or in computing the "advance tax" payable under Chapter
XVII-C of the said Act, at the rate or rates in force,-
(a) the net agricultural income shall be
taken into account, in the manner provided in clause (b) that
is to say, as if the net agricultural income were comprised
in the total income after the first one lakh fifty thousand
rupees of the total income but without being liable to tax,
only for the purpose of charging or computing such income-tax
or, as the case may be, "advance tax" in respect of the total
income; and
(b) such income-tax or, as the case may
be, "advance tax" shall be so charged or computed as follows:-
(i) the total income and the net agricultural
income shall be aggregated and the amount of income-tax or
"advance tax" shall be determined in respect of the aggregate
income at the rates specified in the said Paragraph A, as
if such aggregate income were the total income;
(ii) the net agricultural income shall
be increased by a sum of one lakh fifty thousand rupees, and
the amount of income-tax or "advance tax" shall be determined
in respect of the net agricultural income as so increased
at the rates specified in the said Paragraph A, as if the
net agricultural income were the total income;
(iii) the amount of income-tax or "advance
tax" determined in accordance with sub-clause (i) shall be
reduced by the amount of income-tax or, as the case may be,
"advance tax" determined in accordance with sub-clause (ii)
and the sum so arrived at shall be the income-tax or, as the
case may be, "advance tax" in respect of the total income:
Provided that in the case
of every woman, resident in India and below the age of sixty-five
years at any time during the previous year, referred to in
item (II) of Paragraph A of Part III of the First Schedule,
the provisions of this sub-section shall have effect as if
for the words "one lakh fifty thousand rupees", the words
"one lakh eighty thousand rupees" had been substituted:
Provided further that
in the case of every individual, being a resident in India,
who is of the age of sixty-five years or more at any time
during the previous year, referred to in item (III) of Paragraph
A of Part III of the First Schedule, the provisions of this
sub-section shall have effect as if for the words "one lakh
fifty thousand rupees", the words "two lakh twenty-five thousand
rupees" had been substituted:
Provided also that the
amount of income-tax or "advance tax" so arrived at shall
be increased by a surcharge, for purposes of the Union, calculated,
in each case, in the manner provided therein.
(11) The amount of income-tax as specified
in sub-sections (1) to (10) and as increased by a surcharge,
for purposes of the Union, calculated in the manner provided
therein, shall be further increased by an additional surcharge,
for purposes of the Union, to be called the "Education Cess
on income-tax", calculated at the rate of two per cent. of
such income-tax and surcharge so as to fulfil the commitment
of the Government to provide and finance universalised quality
basic education.
(12) The amount of income-tax as specified
in sub-sections (1) to (10) and as increased by a surcharge,
for purposes of the Union, calculated in the manner provided
therein, shall also be increased by an additional surcharge,
for purposes of the Union, to be called the "Secondary and
Higher Education Cess on income-tax", calculated at the rate
of one per cent. of such income-tax and surcharge so as to
fulfill the commitment of the Government to provide and finance
secondary and higher education.
(13) For the purposes of this section and
the First Schedule,-
(a) "domestic company" means an Indian
company or any other company which, in respect of its income
liable to income-tax under the Income-tax Act, for the assessment
year commencing on the 1st day of April, 2008, has made the
prescribed arrangements for the declaration and payment within
India of the dividends, including dividends on preference
shares, payable out of such income;
(b) "insurance commission" means any remuneration
or reward, whether by way of commission or otherwise, for
soliciting or procuring insurance business, including business
relating to the continuance, renewal or revival of policies
of insurance;
(c) "net agricultural income", in relation
to a person, means the total amount of agricultural income,
from whatever source derived, of that person computed in accordance
with the rules contained in Part IV of the First Schedule;
(d) all other words and expressions used
in this section and the First Schedule but not defined in
this sub-section and defined in the Income-tax Act shall have
the meanings respectively assigned to them in that Act. |
