Finance Act, 1988
Rates of income-tax in respect of income liable to tax for the assessment year 1988-89
4.1 In respect of incomes of all categories of taxpayers (corporate as well as non-corporate) liable to tax for the assessment year 1988-89, the rates of income-tax have been specified in Part I of the First Schedule to the Finance Act, 1988. These rates are the same as those laid down in Part III of the First Schedule to the Finance Act, 1987, as amended by the Finance (Amendment) Act, 1987.
Finance Act, 1988
4.2 Accordingly, in the case of every person having income exceeding fifty thousand rupees, the amount of income-tax shall be increased by a surcharge for purposes of the Union calculated at the rate of 5 per cent of such income-tax.
Further, in the case of profits and gains of life insurance business, the amount of tax computed in accordance with the provisions of section 115B of the Income-tax Act shall be increased by a surcharge calculated at the rate of five per cent of income-tax. Also the amount of income-tax computed in accordance with provisions of section 115BB of the Income-tax Act on any income from winnings from lotteries, etc., shall be increased by a surcharge calculated at the rate of five per cent of the income-tax. However, no surcharge shall be payable by a non-resident.
Finance Act, 1988
Rates for deduction of tax at source during the financial year 1988-89 from incomes other than ��salaries��
5.1 The rates of deduction of income-tax at source during the financial year 1988-89 from incomes, other than ��salaries��, have been specified in Part II of the First Schedule to the Finance Act. These rates apply to income by way of interest on securities, other categories of interest, dividends, insurance commission, winnings from lotteries and crossword puzzles, income by way of winnings from horse races and income of non-residents (including non-resident Indian) other than salary income. There are certain changes in these rates as compared to the rates in force during the financial year 1987-88. During the financial year 1987-88, tax deductible at source on any income by way of winnings from lotteries, crossword puzzles and horse races, in the case of a person being a non-corporate resident assessee was 40 per cent. However, in the case of non-corporate non-resident assessees as well as corporate assessees tax was deductible at the residual rates prescribed for that class of assessees. Section 115BB of the Income-tax Act provides that the income by way of winnings from lotteries or crossword puzzles or races including horse races or card games and other games of any sort or from gambling or betting of any form or nature whatsoever is chargeable to tax at the rate of forty per cent. With a view to bring uniformity in the rate of deduction of tax at source and the rate at which such income is chargeable to tax, in the case of all assessees, Finance Act, 1988 has specifically provided that in the case of corporate assessees as well as non-corporate assessees, whether resident or not, tax will be deducted at source at the rate of forty per cent on any income by way of winnings from lotteries, crossword puzzles and by way of winnings from horse races.
Finance Act, 1988
5.2 The amount of tax so deducted at source shall in the case of every person being a resident in India or a domestic company be increased by a surcharge calculated at the rate of five per cent of the income-tax.
Finance Act, 1988
5.3 In respect of any payment made to a contractor or a sub-contractor, section 194C of the Income-tax Act provides the rate of deduction of tax at source. The amount of income-tax so deducted shall be increased by a surcharge at the rate of five per cent of the income-tax.
Finance Act, 1988
5.4 With the insertion of new section 206C in the Income-tax Act, the Finance Act has also provided that the amount of tax so collected under the section shall be increased by a surcharge calculated at the rate of five per cent of the income-tax.
Finance Act, 1988
Rates for deduction of tax at source from ��salaries��, computation of ��advance tax�� and charging of income-tax in special cases during the financial year 1988-89
6.1 The rates of deduction of tax at source from ��salaries�� in the case of individuals during the financial year 1988-89 and also for computation of advance tax payable during the year in the case of all categories of taxpayers have been specified in Part III of the First Schedule to the Finance Act. These rates are also applicable for charging income-tax during the financial year 1988-89 on current income in cases where accelerated assessments have to be made, e.g., provisional assessment of shipping profits arising in India to non-residents, assessment of persons leaving India for good during the financial year 1988-89, assessment of persons who are likely to transfer property to avoid tax, where an order has to be passed in a case of search and seizure for calculating the amount of tax on the estimated undisclosed income, etc.
Finance Act, 1988
6.2 The amount of income-tax to be deducted at source or advance tax or income-tax payable shall, in the case of every person having income exceeding fifty thousand rupees, be increased by a surcharge calculated at the rate of five per cent of the income-tax.
However, no surcharge shall be payable by a non-resident.
Finance Act, 1988
6.3 Similarly, in the case of profits and gains of insurance business, the amount of advance tax payable in accordance with section 115B shall be increased by a surcharge computed at the rate of five per cent of the income-tax.
Finance Act, 1988
Rates of tax applicable to individuals, Hindu undivided families, unregistered firms, etc., co-operative societies, registered firms and local authorities
7.1 In the case of individuals, Hindu undivided families, unregistered firms, etc., the rates of income-tax have been specified in Paragraph A of Part III of the First Schedule. In the case of co-operative societies, registered firms and local authorities, the rates of income-tax have respectively been specified in Paragraph B, Paragraph C and Paragraph D of Part III. These rates are the same as those specified in the corresponding paragraph of Part I of the Schedule to the Finance Act, 1987.
Finance Act, 1988
7.2 The amount of income-tax so computed shall in the case of every assessee having income exceeding fifty thousand rupees be increased by a surcharge for purposes of Union, calculated at the rate of five per cent of income-tax.
However, no surcharge shall be payable by a non-resident.
Finance Act, 1988
Rates of tax applicable to companies
8.1 In case of companies the rates of income-tax have been specified in Paragraph E of Part III of the First Schedule. These rates are the same as those specified in the corresponding paragraph of Part I of the Schedule to the Finance Act, 1987.
Finance Act, 1988
8.2 The amount of tax so computed shall, in the case of every company having income exceeding fifty thousand rupees, be increased by a surcharge calculated at the rate of five per cent of income-tax.
Finance Act, 1988
Partially integrated taxation of non-agricultural income with income derived from agriculture
9. As in the past, the Finance Act provides that in the case of individuals, Hindu undivided families, unregistered firms and other associations of persons, etc., the net agricultural income will be taken into account for computation of ��advance tax�� and charging of income-tax. These provisions are broadly on same lines as those in earlier years.