Income tax slabs for FY2007-08

According to the Finance Act, 2005 income-tax is required to be deducted under section 192 of the Income-tax Act, 1961, from income chargeable under the head "Salaries" for the financial year 2007-2008 (i.e. assessment year 2008-2009) at the following rates:

I) In case of every individual other than the individual referred to in item II and III below:

Total Income (Rs.) ------ Rate
1,10,000 to 1,50,000 -----10%
1,50,000 to 2,50,000 -----4,000 + 20%
Above 2,50,000 ----------24,000 + 30%

II) In case of women employees below 65 years of age:
Total Income (Rs.) ------Rate
1,45,000 to 1,50,000 ----10%
1,50,000 to 2,50,000 ----500 + 20%
Above 2,50,000 ---------20,500 + 30%

II) In case of senior citizens:
Total Income (Rs.) ------Rate
1,95,000 to 2,50,000 ----20%
Above 2,50,000 ---------11,000 + 30%

A) Surcharge on Income-tax: Surcharge on income tax on all firms and companies with a taxable income of Rs.1 crore or less will get removed.
B) Surcharge on T.D.S. on the payment other than salaries: The amount of income tax deducted in accordance with the provision of Chapter XVII B shall be increased by a surcharge calculated.
In the case of every individual, HUF, 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 income paid or likely to be paid and subject to the deduction, exceeds rupees ten lakh. In the case of every firm, artificial judicial person & domestic company, at the rate of ten percent of such tax.In the case of every company other than domestic company, at the rate of two and half per cent of such tax.
C) Education Cess: An additional surcharge called as ‘Education cess’ shall be levied at the rate of three percent on the amount of tax deducted inclusive of surcharge as stated in paras ‘A’ and ‘B’ above.