The following tax rates and information are to be used in answering the questions:
A. Tax rates for individuals and associations of personsTaxable incomeRate of tax
Up to Rs. 80,0000%Rs.180,001 – Rs. 150,0007·5% of the amount exceeding Rs. 80,000Rs. 150,001 – Rs. 300,000Rs. 5,250 plus 12·5% of the amount exceeding Rs. 150,000.Rs. 300,001 – Rs. 400,000Rs. 24,000 plus 20% of the amount exceeding Rs. 300,000.Rs. 400,001 – Rs. 700,000Rs. 44,000 plus 25% of the amount exceeding Rs. 400,000.Rs. 700,001 and aboveRs. 119,000 plus 35% of the amount exceeding Rs. 700,000.
B. Reduction in tax liability of salaried individuals where salary income exceeds 50% of taxable incomeIncome slabReduction in tax liability
Up to Rs. 60,00010%Rs.–60,001 – Rs. 80,00070%Rs.
80,001 – Rs. 100,00060%Rs. 100,001 – Rs. 150,00050%Rs. 150,001 – Rs. 200,00040%Rs. 200,001 – Rs. 300,00030%Rs. 300,001 – Rs. 500,00020%Rs. 500,001 – Rs. 1,000,00010%Rs. 1,000,001 and above15%
C. Tax rates for companiesTax YearBankingPublic company otherPrivate company othercompanythan a banking companythan a banking company
D. Tax rates on dividends received from companies
Received by a public company or an insurance company5% of the gross dividendIn any other case10% of the gross dividend
E. Tax rates on certain payments to non-residents
Fees for technical services (FTS)15% of the gross amountOther than for royalty or FTS30% of the gross amount
F. Rates of advance collection or deduction of tax at source
Profit on bank deposits10% of the profit paidYield on certificates under the National Savings Schemeor Post Office Saving Account10% of the yield paidSale of goods3·5% of the gross amount payablePrizes and winnings10% of the gross amount paidContracts up to the value of Rs.30 million5% of the amount of the payment2
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