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Press Trust Of India
February 20, 2003
Over the past few years, the tax provisions have been simplified considerably. Not only have the tax rates been reduced, the rate-structure has also been changed and now there exist only three slabs -- 10 per cent, 20 per cent and a maximum rate of 30 per cent. Budget 2002-03 saw the rates of surcharge in the highest tax bracket increase to five per cent from two per cent. Which means, individuals in the 20 per cent tax bracket are liable to pay income-tax of 21 per cent (20 per cent income-tax plus one per cent surcharge) and individuals in the highest tax bracket are now liable to pay income-tax of 31.5 per cent, i.e., 30 per cent income-tax and 1.5 per cent surcharge.

Taxable Income Tax

Upto Rs. 50,000

Rs 50,000 to Rs. 60,000
10% of income above Rs. 50,000

Rs 60,001 to Rs. 1,50,000
Rs.1,000 plus 20% of income above Rs.60,000 + 5% surcharge
on total amount of Income tax
Rs 1,50,001 and above Rs.19,000 plus 30% of income above Rs.1,50,000 + 5% surcharge on total amount of Income Tax

Some concessions have been given to senior citizens and women. For senior citizens (any person who turns 65 years on any day prior to March 31, 2003 will be treated as senior citizen), an amount of Rs. 15,000 is deductible from tax liability.

In case of women below 65 years of age, an exclusive rebate of Rs. 5000 is allowed under section 88C and for those above 65 years of age, rebate of Rs. 15,000 is allowed under section 88B.

Non-resident Indians do not have to pay surcharge.