Section 4 of the Income Tax Act, 1961 is the charging section which contains that-
- Tax shall be charged at the rates formulated by the Annual Finance act for the year.
- Tax is charge is on every person specified u/s 2(31).
- Shall be Tax chargeable on the total income earned during the previous year (not the assessment year).
- Tax shall be charged according to various provision of this act.
Rates of Tax-
Income tax is to be charged at a prescribed or fixed for the year by the Annual Finance Act. It varies according to different- different person.
The Basis of Charge is as follows:
|1. Individual/ Hindu Undivided family/ Association of Person/ body of Individuals/ Artificial Juridical Person|
|b)||Rs 250001- Rs. 500000||5 % Of ( Total Income- Rs.250000)|
|c)||Rs. 500001- Rs. 1000000||Rs. 12500+ 20 % of (Total Income-Rs.500000)|
|d)||Above Rs. 1000000||Rs.112500 + 30 % of (Total Income- Rs.1000000)|
|2. For Senior Citizens (being resident individuals of the age 60 years or more but less than 80 years)|
|b)||Rs. 300001- Rs. 500000||5 % Of ( Total Income-Rs. 300000)|
|c)||Rs. 500001- Rs. 1000000||Rs.10000+ 20% of ( Total Income-Rs. 500000)|
|d)||Above Rs. 1000000||Rs.110000 + 30% of (Total Income- Rs. 1000000)|
|1. For Super Senior Citizens (Being resident individual more than 80 years)|
|b)||Rs. 500001- Rs. 1000000||20% of (Total Income – Rs.500000)|
|c)||Above Rs. 1000000||Rs. 100000+ 30% of (Total Income –Rs. 1000000|