Business individuals , partnership firms and any group of persons (Association of Persons) are required to true and fair estimation of profit , tax is charged on the profits business organizations.
All sole proprietors and AoP’s fall with the category Business Individuals and AOP’s, hence taxation relating to Business Individuals and AOP’s are applicable to all of them.
Tax Rates for Business Individuals and AoP’s are as follows
|Sr. No.||Slab / Income||Tax Rate|
|1.||Where the taxable income does not exceed Rs. 400,000||0%|
|2.||Where the taxable income exceeds Rs.400,000 but does not exceed Rs.500,000||7% of the amount exceeding Rs.400,000|
|3.||Where the taxable income exceeds Rs.500,000 but does not exceed Rs.750,000||Rs. 7,000 + 10% of the amount exceeding Rs.500,000|
|4.||Where the taxable income exceeds Rs.750,000 but does not exceed Rs.1,500,000||Rs.32,000 + 15% of the amount exceeding Rs.750,000|
|5.||Where the taxable income exceeds Rs.1,500,000 but does not exceed Rs.2,500,000||Rs.144,500 + 20% of the amount exceeding Rs.1,500,000|
|6.||Where the taxable income exceeds Rs.2,500,000 but does not exceed Rs.4,000,000||Rs.344,500 + 25% of the amount exceeding Rs.2,500,000|
|7.||Where the taxable income exceeds Rs.4,000,000 but does not exceed Rs.6,000,000||Rs.719,500 + 30% of the amount exceeding Rs.4,000,000|
|8.||Where the taxable income exceeds Rs.6,000,000||Rs.1,319,500 + 35% of the amount exceeding Rs.6,000,000‖]|