Income Tax Rates for Individuals for the Financial Year 2008-09 -

Income Tax Rates for Individuals for the Financial Year 2008-09

Budget 2008 has brought lot of relief to the income tax payers as there is lot of concession in the income tax rates for the financial year 2008-09. Income tax is still one of the major source of income of the Government of India. All individuals who has income above certain limit is liable to pay the income tax according to the specified tax rates.

Income tax rates vary from one individual to other depending on the status and type of citizenship he/she holds. For the purpose of calculating income tax, Income Tax Act has classified assessees in to three categories, they are:-

Resident Senior Citizen or Assessee – All individuals, whose age is above 65 years.

Resident Female citizen or Assessee – All women aged below 65 years.

Ordinary citizen or others – All individuals, who do not fall under above two categories.

In case where the Total Income exceeds Rs 10,00,000, there would be a surcharge @ 10%.Marginal relief is available to assessee whose income just exceeds Rs. 10,00,000.Education Cess on Income Tax Education Cess @ 3% will be payable on the amount of income tax (including surcharge).