Government of India had increased the basic personal income tax exemption limit from Rs. 100,000 to Rs. 100,000 for Financial Year 2006-2007 and Assessment Year 2007-2008. The new income tax rates or income tax slabs were effective from April 01, 2006.
Personal Income Tax Rates in India for the Financial Year 2006-2007 and Assessment Year 2007-2008
New Delhi (Delhi, India), August 12, 2018
Indian Government Ups Basic Personal Income Tax Exemption Limit from Rs. 100,000 to Rs. 100,000
The Government of India had increased the basic personal income tax exemption limit from Rs. 100,000 to Rs. 100,000 for the Financial Year 2006-2007 and Assessment Year 2007-2008.
The new income tax rates or Income tax slabs were applicable for the incomes earned or generated from April 01, 2006 to March 31, 2007.
Mr. Palaniappan Chidambaram, the Finance Minister of India, announced the new personal income tax slab rates while presenting the Union Budget of India, also called the Indian General Budget, on Tuesday, February 28, 2006 in New Delhi.
Here are the personal income tax slab rates for calculating your income tax for the Financial Year 2006-2007 (Assessment Year 2007-2008).
I. Income Tax Slabs for the Individual Male (Below 65 Years Age) for the Assessment Year 2007-2008
1. Income Tax Slab: Rs. 0 to 100,000 – Income Tax Rate Payable: Nil
2. Income Tax Slab: Rs. 100,001 to 150,000 – Income Tax Rate Payable: 10%
3. Income Tax Slab: Rs. 150,001 to 250,000 – Income Tax Rate Payable: 20%
4. Income Tax Slab: Rs. 250,001 and above – Income Tax Rate Payable: 30%
II. Income Tax Slabs for the Individual Female (Below 65 Years Age) for the Assessment Year 2007-2008
1. Income Tax Slab: Rs. 0 to 135,000 – Income Tax Rate Payable: Nil
2. Income Tax Slab: Rs. 135,001 to 150,000 – Income Tax Rate Payable: 10%
3. Income Tax Slab: Rs. 150,001 to 250,000 – Income Tax Rate Payable: 20%
4. Income Tax Slab: Rs. 250,001 and above – Income Tax Rate Payable: 30%
III. Income Tax Slabs for the Senior Citizen (Male or Female Above 65 Years Age) for the Assessment Year 2007-2008
1. Income Tax Slab: Rs. 0 to 185,000 – Income Tax Rate Payable: Nil
2. Income Tax Slab: Rs. 185,001 to 250,000 – Income Tax Rate Payable: 20%
3. Income Tax Slab: Rs. 250,001 and above – Income Tax Rate Payable: 30%
Applicable Surcharge and Cess:
Surcharge: A surcharge of 10% on income tax amount is payable if total income is exceeding Rs. 1,000,000.
Education Cess: A 2% education cess is payable on the total of Income Tax amount and Surcharge.
Calculation of an Individual’s Age and Applicable Income Tax Rates
The normal income tax rates applicable to a resident individual will depend on the age of the individual. However, in case of a non-resident individual the income tax rates will be same irrespective of his or her age.
For the purpose of ascertainment of the applicable income tax slab, an individual is classified as follows:
(1) Resident individual below the age of 65 years (i.e. he or she had born on or after April 01, 1942).
(2) Resident individual of the age of 80 years or above at any time during the year (i.e. he or she had born before April 01, 1942).
(3) For a non-resident individual, the income tax rates will be same irrespective of the age.
Union Budget of India 2006-2007 – Minister of Finance’s Speech
Ministry of Finance, Government of India – Finance Minister’s Budget Speech for Financial Year 2006-2007
