Taxation Planning

One famous personality quoted that there are only two things that are permanent in the world for human beings, death and taxes!!
In India, the basic law governing the taxation is the Income Tax Act 1961. The various incomes are clubbed under this Act and the rates for the taxes are mentioned. Individuals have a different tax structure, HUF, and Corporates have a different tax structure.

  

Firm / Association of Persons

Income Tax : 30% of taxable income.

Surcharge : 10% of the Income Tax, where taxable income is more than Rs. 1 crore.

Education Cess : 3% of the total of Income Tax and Surcharge.

Local Authority

Income Tax : 30% of taxable income.

Surcharge : 10% of the Income Tax, where taxable income is more than Rs. 1 crore.

Education Cess : 3% of the total of Income Tax and Surcharge.

Domestic Company

Income Tax : 30% of taxable income.

Surcharge : The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge.

At the rate of 5% of such income tax, provided that the taxable income exceeds Rs. 1 crore.
At the rate of 10% of such income tax, provided that the taxable income exceeds Rs. 10 crores.
Education Cess : 3% of the total of Income Tax and Surcharge.